Business Fronting Loans

Introduction

This guide explains the integration process of Solaris' business fronting loans product, including the mandatory information you need to collect from your customers and the necessary endpoints and webhooks you need to integrate into your solution.

Product overview

What is a fronting loan?

Solaris fronting loans solution allows you to offer single loans to your customers by leveraging Solaris' banking license. As the fronting bank, Solaris takes over the functions that require a banking license, such as customer identification and vetting (KYC/BKYC), credit risk checks, and loan origination and payout.

After a loan is paid out to the requesting customer, Solaris sells the loan agreement and receivables back to you or other investors. Therefore, fronting loans don't involve servicing activities from Solaris, such as collection or dunning.

How does it work?

In the lifecycle of a fronting loan, Solaris acts as the fronting bank that performs the initial regulatory steps until a loan is paid out.

  • You start the process by collecting the required information from your customers and doing your internal due diligence and credit risk checks.
  • After you approve the customers, prepare the loan agreement and applicable interest rates and pass all the details and loan application to Solaris.
  • Your customers must go through an identification process (KYC/BKYC) and credit risk checks by Solaris to approve or reject the loan application.

Money flow:

After successful identification and approval of the loan application, the money flow goes as follows:

  • Solaris triggers the loan payout by sending the requested loan amount to the customer's account.
  • Solaris sells back the loan agreement and receivables to you or other investors, who take care of the rest of the loan lifecycle.

Available markets

Business fronting loans are currently only available for business customers in Germany and France.


System prerequisites

Before integrating Solaris' business fronting loans, you must implement the following requirements in your solution:

1. Technical setup:

Set up your environment and get your authentication keys. For step-by-step instructions, check the Technical setup guide.

2. Legal and compliance screens:

Build the necessary legal and compliance screens in your sign-up flow to collect your customers' consent to the necessary legal and compliance requirements. The Legal and compliance screens guide contains step-by-step instructions on how to create these screens and what they must contain.

Record the customer's consent on each screen as a UTC timestamp (e.g., 2019-01-01T00:00:00Z). Afterward, you must pass each timestamp in its respective field to Solaris.

  • Collect the customer's consent to Solaris' Terms and Conditions and store the timestamp in the terms_conditions_signed_at field.
  • Collect the customer's consent to data processing and store the timestamp in the data_terms_signed_at field.
note

The mentioned fields are part of the person resource in which all the customer data points are stored.


Integration overview

The following diagram gives a high-level overview of the integration process for business fronting loans. Click on each step to go to its dedicated section for full instructions:

Business registration
Legal & compliance requirements
Legal & compliance requir...
Step 1:
Collect business data
and create business
resource
Step 1:...
Step 2:
Upload business documents
Step 2:...
Business fronting loan application 
Step 7:
Create business
fronting  loan
application
Step 7:...
Step 8:
  Upload documents & 
link them to application
Step 8:...
Step 9:
Link identification to 
fronting application
Step 9:...
BKYC/
Scoring
BKYC/...
failed
failed
Abort onboarding
Abort on...
successful
successful
Business identification (BKYC) 
Step 6.1:
Create & trigger
business identification (BKYC)
Step 6.1:...
Step 6.2:
  Implement compliance questions
Step 6.2:...
Loan payout & money flow
Step 10:
Trigger loan payout
Step 10:...
Natural persons registration
Step 3.1:
Collect legal
representative data 
and create person resource
Step 3.1:...
Step 3.2:
Assign
legal representative
role to person 
Step 3.2:...
Step 4.1:
Collect beneficial owner
data 
and create person resource
Step 4.1:...
Step 4.2:
Assign beneficial owner
role to person
Step 4.2:...
Tax information
Step 5:
Create person tax identification
Step 5:...
Text
Text
Text is not SVG - cannot display

You can integrate Solaris' business fronting Loans product by completing the 10 steps explained in the following sections. Here's an overview of these steps:

Category Step Description
Business registration Step 1 Collect the mandatory business data, and create a business resource for your customer.
Business registration Step 2 Collect the required business documents from the business and pass them to Solaris by creating document resources.
Natural persons registration Step 3 3.1. Collect the mandatory data from each of the business' legal representatives, including the consent to the legal and regulatory requirements, and create a person resource for each legal representative.
3.2 Assign the legal representative role to each legal representative.
Natural persons registration Step 4 4.1. Collect the mandatory data from each of the business' beneficial owner(s), including the FATCA relevance indication, and create a person resource.
4.2 Assign the beneficial owner role to each beneficial owner.
Tax information Step 5 Collect the mandatory tax information of the business' legal representative(s), beneficial owner(s) and authorized person(s) and create person tax identification resource(s).
Customer identification Step 6 6.1. Trigger the business identification process (BKYC) for the business and redirect all of the business' legal representative(s) to complete the video identification process with IDnow.
6.2. Implement the compliance questions endpoints related to the business' legal identification process. Make sure to redirect the questions (if any) to the business' legal representative(s) and provide the answers to Solaris on time.
6.3. Ensure all the CDD-related properties in the business object are green. In case of any red or yellow status value, abort the customer onboarding process.
Fronting loan application Step 7 Collect the mandatory data points from the business and create a business fronting loan application.
Fronting loan application Step 8 Upload the required fronting documents from the business and link it to the fronting application.
Fronting loan application Step 9 Link the business' identification resource to their fronting loan application.
Loan payout & money flow Step 10 Complete this step only if both the BKYC and the scoring processes are successful. Trigger the loan payout process. The status of the loan payout will change to payout_pending after triggering the payout. After all transfers are completed, the loan payout status changes to payout_issued, and the customer receives the loan amount.
note

After the loan payout, Solaris immediately sells the loan's contract and receivables back to you or other investors. Solaris doesn't perform any loan servicing, dunning, or collection.

You can find detailed descriptions of these steps and their related endpoints in the following sections.

Sequence diagram

The following sequence diagram gives an overview of the integration flow:

note

To view a larger version of this diagram, right-click on the image and click "Open in a new tab."

Diagram: Business fronting loans flow

Webhooks

Solaris recommends subscribing to the following webhook events to better automate your processes. For detailed instructions on implementing Solaris webhooks, check the webhooks documentation.

Mandatory features

You must integrate all the mandatory features for Business Fronting highlighted in the Onboarding requirements guide before going live with your solution.


Step 1: Collect business data and create business resource

Collect the mandatory data points from the customer in your sign-up flow, including all the timestamps of the business's consent to the legal and compliance screens.

Afterward, pass all the data points to Solaris by creating a business resource to represent your customer.

API reference

For a complete list of endpoints, properties, and examples related to the business resource, visit the following links:

Related webhook events

Important points about data collection
  • Please consider the special considerations for data collection highlighted in the onboarding requirements guide.
  • You must submit the information exactly as it appears in official documents.

POST Create a business

Important points
  • The mandatory data points required for businesses may differ depending on the country in which you're opening the account. The following example outlines the mandatory fields for Germany. For information about other countries, please refer to the Onboarding requirements guide
  • There are certain mappings between the fields tax_country, sector, and legal_form. Check this section for more information.

This endpoint creates a business resource for your customer. You must collect the following mandatory data points from the customer in your sign-up flow and pass it to Solaris in the request body of this endpoint:

  • name
  • address

    • line_1
    • line_2
    • postal_code
    • city
    • country
  • sector
  • legal_form
  • nace_code
  • foundation_date
  • crs_company_type or registration_type
  • business_purpose
  • tax_information

    • tax_country
    • tax_confirmation
    • registration_issuer: For Germany, it must be preceded by AMTSGERICHT (e.g., AMTSGERICHT Berlin).
    • registration_number
  • registration_district
  • terms_conditions_signed_at
  • data_terms_signed_at
  • balance_sheet_total
  • number_employees

Request URL:

Copy
Copied
POST /v1/businesses

Click here to view the full API reference.


Automatic data collection (Optional)

Simplify your customers' onboarding process by opting for the automatic data collection feature. With our external service provider, Business Registry, customers can enter the country and company name, and the remaining business data fields will be automatically filled out.

info

Automated data collection is an optional step that improves user experience. For more information on this feature and its associated cost, please contact your Partner Manager.

GET Search for business commercial registration

The customer enters the company's name and country on your frontend and you pass this information using the following endpoint to automatically fetch the business' registration_issuer and registration_number:

note

This endpoint may be used free of charge.

Request URL:

Copy
Copied
GET /v1/commercial_registrations/search_by_name?country={{}}&name={{}}

Example response

Copy
Copied
{
  "name": "FLOOR 13 GmbH",
  "registration_number": "HRB 198673",
  "registration_issuer": "AMTSGERICHT MÜNCHEN"
}

Click here to view the full API reference.

GET Automatic business data collection

Use the following endpoint to automatically retrieve the remaining business details after obtaining the registration_issuer and registration_number from the response of the previous endpoint:

attention
  • This endpoint has an associated cost per request. Contact your Partner Manager for more information.
  • Please note that for companies in Germany, you must add AMTSGERICHT before the value of the registration_issuer, e.g., AMTSGERICHT MÜNCHEN.

Request URL:

Copy
Copied
GET /v1/commercial_registrations/find?registration_number={{}}&registration_issuer={{}}

Example response

Copy
Copied
{
  "name": "FLOOR 13 GmbH",
  "address": {
    "country": "DE",
    "postal_code": "86919",
    "city": "Utting a.Ammersee",
    "line_1": "Seestraße 9",
    "line_2": ""
  },
  "legal_form": "GMBH",
  "tax_country": "DE",
  "registration_number": "HRB 198673",
  "registration_issuer": "AMTSGERICHT MÜNCHEN",
  "registration_date": "2012-05-09",
  "registry_updated_at": "2015-11-17",
  "legal_representatives": [
    {
      "first_name": "Stefan",
      "last_name": "Schneider"
    }
  ]
  "commercial_registry_industry_key": [
      "66190 - Sonstige mit Finanzdienstleistungen verbundene Tätigkeiten",
      "70109 - Sonstige Verwaltung und Führung von Unternehmen und Betrieben",
      "70220 - Unternehmensberatung",
      "73110 - Werbeagenturen"
  ]  
}

Click here to view the full API reference.

Foreign companies examples

If the company is not registered in Germany, you can still use this service for companies in other countries. The following examples describe how to find the business registration details for a French company.

note

The field registration_issuer is only required for companies in Germany.

GET Search for business commercial registration (France)

Request

Copy
Copied
GET v1/commercial_registrations/search_by_name?name=PARISOL&country=FR

Response

Copy
Copied
{
  "name": "PARISOL",
  "registration_number": "513 937359",
  "registration_issuer": null
}

GET Automatic business data collection (France)

Request

Copy
Copied
GET  /v1/commercial_registrations/find?registration_number=513937359&country=FR

Response

Copy
Copied
{
  "name": "PARISOL",
  "address": {
    "country": "FR",
    "postal_code": null,
    "city": "NANTERRE",
    "line_1": "RUE D ARRAS 18",
    "line_2": ""
  },
  "legal_form": null,
  "tax_country": "FR",
  "registration_number": "513 937359",
  "registration_issuer": null,
  "registration_date": "2009-07-27",
  "registry_updated_at": null,
  "legal_representatives": [
    {
      "first_name": "Stefan",
      "last_name": "Schneider"
    }
  ]
}
info

Check the appendix for testing data for these endpoints.


Step 2: Upload business documents

The business must submit the required documents for the business identification process (BKYC) in your sign-up flow. The required documents depend on different factors, such as the business's legal form, sector, etc. Check the appendix for a list of required documents per legal form.

Create document resources for all the required documents you've collected from the business and attach them to the business using the following endpoints.

attention

You have to make a separate API request for each document and specify the document_type. See the appendix for a list of possible values for this field.

API reference

For a complete list of endpoints, properties, and examples related to the business document resource, visit the following links:

POST Upload a document

This endpoint uploads a document and links it to the business with the business_id specified in the request URL.

You have to add the following properties to the request body:

  • document_type: The document type. For a list of possible values, check the API reference.
  • file: The file to be uploaded.
note

The request body of this endpoint is a multipart/form-data content type and parameters are transmitted as form-data and not as a raw JSON string.

Request URL

Copy
Copied
POST /v1/businesses/{business_id}/documents

Click here to view the full API reference..


After creating a business resource, you must create the natural person(s) associated with the business and assign them to their respective roles. The natural person(s) are represented in our system by a person resource that contains their data, and then you must assign each person a dedicated role. The mandatory roles are legal representative and beneficial owner.


Step 3: Create Legal representative(s)

In this step, collect the mandatory data points from the business' legal representative(s) and create a person object for each representative. Then create a legal_representative resource and link it to the corresponding person object.

What is a legal representative?

Legal representatives can be natural persons (individuals) or legal entities (businesses) appointed by a company to act on its behalf. The legal representative(s) of a company may be, for instance, its general manager(s) or its managing director(s). The names of a business' legal representatives (Gesellschafter) are usually recorded in the company's commercial register.

Important
  • A business must have at least one legal representative.
  • If a business has more than one legal representative, make sure to create and link all of them to the business object on our system to avoid any delays during the business identification process.

Legal representatives as legal entities

A business' legal representative could be a legal entity instead of a natural person. For example, the legal representative of a GbR company could be another GmbH or AG company.

In this case, you must do the following:

  • Collect the business data of the legal entity acting as the legal representative and create a business resource for it.
  • The natural persons who are the legal representatives of this legal entity are then the ones who will go through the KYC flow.

3.1 Create person resource(s) for each legal representative

For each of the business' legal representatives, you must collect the following mandatory information and pass them to Solaris by creating a person resource.

API reference

For a complete list of endpoints, properties, and examples related to the person resource, visit the following links:

Related webhook events

Important points about data collection
  • Please consider the special requirements for data collection highlighted in the onboarding requirements guide.
  • You must submit the information exactly as it appears in official documents.
  • When testing the process on Sandbox, please ensure that each person you create has unique values for first_name, last_name, birth_city, and birth_date. If you create over 1000 identical person resources, the API will return a 400 error.
  • Don't use any personal data when testing this endpoint on Sandbox.

POST Create person (Legal representative)

Important points
  • The mandatory data points for legal representatives depend on the country in which you're opening the account. The following example shows the mandatory data points for Germany. For other countries, check the Onboarding requirements guide
  • You have to create a separate person object for each legal representative associated with the business.

Call this endpoint to create a person resource for the business' legal representative. You must collect the following mandatory data points in your sign-up flow and pass it to Solaris in the request body of this endpoint:

  • salutation
  • first_name
  • last_name
  • address

    • line_1
    • line_2
    • postal_code
    • city
    • state
    • country
  • birth_date
  • birth_city
  • birth_country
  • nationality
  • mobile_number

Request URL:

Copy
Copied
POST /v1/persons

Click here to view the full API reference


3.2 Create legal representative resource(s)

For each person resource you created in the previous step, you must create a legal_representative resource, and set the value of the legal_representative attribute to its associated person_id.

POST Create legal representative

API reference

For a complete list of endpoints, properties, and examples related to the legal_representative resource, visit the following links:

Related webhook events

POST Create legal representative

Call this method to create a legal_representative resource on the business and link a person to the business as a legal representative.

Attributes

  • type_of_representation: A legal_representative could have a type_of_representation, which indicates whether this legal representative can make decisions alone or jointly with other legal representatives. This attribute is optional. Possible values are ALONE, JOINT, or OTHER.
  • power_of_attorney_confirmed_at: In case of JOINT representation, legal representatives need to confirm the power of attorney's timestamp in the power_of_attorney_confirmed_at attribute.

Request URL:

Copy
Copied
POST /v1/businesses/{business_id}/legal_representatives

Click here to view the full API reference.

info

Check the FAQ for more information about legal representatives.


Step 4: Create Ultimate Beneficial Owner(s)

In this step, you must do the following:

  • Collect the mandatory data points from the business' beneficial owner(s) and create a person object for each beneficial owner.
  • Create a beneficial_owner resource and assign it to its corresponding person object.
  • Include the definition of the beneficial owner in your UI.
Important
  • If a business has more than one beneficial owner, make sure to create and link all of them to the corresponding business object to avoid any delays during the business identification process.
  • A beneficial owner MUST be a natural person and CANNOT be another company.

What is a Beneficial Owner?

The Beneficial Owners (BO) are natural persons who, directly or indirectly, own more than 25% of a company's shares.

According to the German Money Laundering Act (Geldwäschegesetz - GwG), a Beneficial Owner is a natural person who:

  • Ultimately owns or controls the business.
  • On whose behalf a transaction is ultimately carried out.
  • On whose behalf a business relationship is ultimately established.
Important notes
  • The beneficial owner must be a natural person (individual) and not a legal entity (company). If your business is owned by another company (holding or corporate structure), you need to follow the trail of indirect ownership until you find an individual.
  • After a thorough investigation, if no individual owns directly or indirectly more than 25% of the company's voting shares, you must add the legal representative(s) as fictitious beneficial owners.
  • Beneficial owners don't require video identification.
  • For more information about beneficial owners, check the FAQ in the appendices section.

Beneficial owner legal definition

Please ensure that the beneficial owner's full definitions and the checkbox are available to your customers in your sign-up flow.

Full definition in English

The ultimate beneficial owner in the sense of the German Money Laundering Act (Geldwäschegesetz - GwG) is the natural person who ultimately owns or controls the contracting party, or on whose behalf a transaction is ultimately carried out or a business relationship is ultimately established. This particularly includes: 1. In case of legal persons, foundations without legal capacity and, in the case of other companies, any natural person who directly or indirectly holds more than a 25% share of the capital, controls more than 25% of the voting rights or exercises control in any comparable manner (+). Establishing the identity of the beneficial owner can be waived, though, for companies that are listed in an organised market in the EU with in accordance with Sec on 2 para. 5 of the Securities Trading Act or, in case of listed companies from a third country, if they are subject to EU-equivalent transparency requirements regarding voting rights or equivalent international standards; 2. In case of foundations or other legal arrangements with legal capacity (or similar) used to manage or distribute assets or property as trustee (trust management), or through which third parties are instructed with the management or distribution of assets or property, the ultimate beneficial owner is:

  • any natural person who is a trustor/settlor, trustee or protector, if applicable
  • any natural person who is a member of the board of the foundation,
  • any natural person designated as a beneficiary,
  • the group of natural persons in whose favour the assets are mainly to be administered or distributed, provided that the natural person who is to be the ultimate beneficial owner of the assets or property has not yet been determined
  • any natural person who, by any other means, directly or indirectly exercises control over the asset management or property or the distribution of income.
  1. In the event of acting on behalf of another party, the ultimate beneficial owner includes the party upon whose initiative the transaction is performed. If the contracting party acts as a trustee, he also acts on behalf of another party. (+) Indirect control exists particularly if corresponding shares are held by one or more associations pursuant to Sec on 20 para. 1 GwG which are controlled by a natural person. Control exists particularly if the natural person can directly or indirectly exert a controlling influence on the association pursuant to Sec on 20 para. 1 GwG. Sec on 290 para. 2 to 4 German Commercial Code (Handelsgesetzbuch - HGB) applies mutatis mutandis to the existence of a controlling influence. If, after extensive audits have been performed and without the facts according to Sec on 43 para. 1 GwG applying, no natural person has been identified or if there is any doubt that the identified person is the ultimate beneficial owner, the ultimate beneficial owner shall be the legal representative, managing partner or partner of the contracting party.

Full definition in German

Wirtschaftlich Berechtigter im Sinne des Geldwäschegesetzes, ist die natürliche Person, in deren Eigentum oder unter deren Kontrolle der Vertragspartner letztlich steht, oder auf deren Veranlassung eine Transaktion letztlich durchgeführt oder eine Geschäftsbeziehung letztlich begründet wird. Hierzu zählen insbesondere: 1. Bei juristischen Personen, außerrechtsfähigen Stiftungen und bei sonstigen Gesellschaften jede natürliche Person, welche unmittelbar oder mittelbar mehr als 25 Prozent der Kapitalanteile hält, mehr als 25 Prozent der Stimmrechte kontrolliert oder auf vergleichbare Weise Kontrolle ausübt(2). Auf die Abklärung des wirtschaftlich Berechtigten kann aber verzichtet werden bei Gesellschaften, die innerhalb der EU an einem organisierten Markt im Sinne des § 2 Abs. 5 des Wertpapierhandelsgesetzes notiert sind, oder bei börsennotierten Unternehmen aus einem Drittstaat, wenn sie dem Gemeinschaftsrecht entsprechenden Transparenzanforderungen im Hinblick auf Stimmrechtsanteile oder gleichwertigen internationalen Standards unterliegen; 2. Bei rechtsfähigen Stiftungen und Rechtsgestaltungen, mit denen treuhänderisch Vermögen verwaltet oder verteilt oder die Verwaltung oder Verteilung durch Dritte beauftragt wird, oder diesen vergleichbaren Rechtsformen zählt zu den wirtschaftlich Berechtigten:

  • jede natürliche Person, die als Treugeber, Verwalter von Trusts (Trustee) oder Protektor, sofern vorhanden,
  • jede natürliche Person, die Mitglied des Vorstands der Stiftung ist,
  • jede natürliche Person, die als Begünstigte bestimmt worden ist,
  • die Gruppe von natürlichen Personen, zu deren Gunsten das Vermögen hauptsächlich verwaltet oder verteilt werden soll, sofern die natürliche Person, die Begünstigte des verwalteten Vermögens werden soll, noch nicht bestimmt ist,
  • jede natürliche Person, die auf sonstige Weise unmittelbar oder mittelbar beherrschenden Einfluss auf die Vermögensverwaltung oder Ertragsverteilung ausübt.
  1. Bei Handeln auf Veranlassung zählt zu den wirtschaftlich Berechtigten derjenige, auf dessen Veranlassung die Transaktion durchgeführt wird. Soweit der Vertragspartner als Treuhänder handelt, handelt er ebenfalls auf Veranlassung.

4.1 Create person resource(s) for each beneficial owner

For each of the business' beneficial owners, you must collect the following mandatory information and pass them to Solaris by creating a person resource.

POST Create person (Beneficial owner)

Important points
  • The mandatory data points for beneficial owners depend on the country in which you're opening the account. The following example shows the mandatory data points for Germany. For other countries, check the Onboarding requirements guide
  • You have to create a separate person object for each beneficial owner associated with the business.

Call this endpoint to create a person resource for the business' beneficial owner. You must collect the following mandatory data points in your sign-up flow and pass it to Solaris in the request body of this endpoint:

  • first_name
  • last_name
  • address

    • line_1
    • line_2
    • postal_code
    • city
    • state
    • country
  • birth_date
  • nationality

Request URL:

Copy
Copied
POST /v1/persons

Click here to view the full API reference


4.2 Create beneficial owner resource(s)

For each person resource you created in the previous step, you must create a beneficial_owner resource, and set the value of the person_id attribute to the id of the associated person resource.

POST Create beneficial owner

API reference

For a complete list of endpoints, properties, and examples related to the beneficial_owner resource, visit the following links:

Related webhook events

POST Create beneficial owner

Call this method to create a beneficial_owner resource on the business and link a person to the business as a beneficial owner. You must add the following properties in the request body of this endpoint:

  • person_id: The ID of the person resource you created for the beneficial owner.
  • voting_share: The beneficial owner's voting share in the business.
note

Please note is that if you're creating a fictitious beneficial owner, the voting_share is not required.

Request URL:

Copy
Copied
POST /v1/businesses/{business_id}/beneficial_owners

Click here to view the full API reference.

info

Check the FAQ for more information about beneficial owners.


Step 5: Create tax identifications

In this step, you must do the following:

  • Collect the mandatory tax information about the natural person(s) associated with the business and create person tax identification resource(s).
Important

This is a mandatory requirement for businesses in all branches. You must collect the tax information and create a person tax identification for all natural persons associated with the business, such as legal representatives, beneficial owners, and authorized persons.

Important points about tax information

Submitting the tax information of your customers is a requirement to open a bank account in all of Solaris branches. However, please note the following:

  • You can open the bank account for customers in Germany (DE branch) before they provide tax information. However, you must submit the customer's tax information to Solaris within 90 days of opening the account. Otherwise, Solaris will block the customer's account with the reason MISSING_TAX_INFORMATION until you submit the required tax information.
  • If a customer has multiple tax residencies (i.e., taxable in multiple countries), you must create a separate tax identification resource for each tax residency and specify only one of them as primary.
  • The first tax_identification to be submitted for a person or a business must be the primary tax identification. If another tax_identification with the value of primary set to true is created, it will set the primary value of the previously created tax_identification to false.
  • A person or business may only have one tax_identification per country.
  • When creating a tax_identification, explicitly collect the country value from the user and do not default to their physical residence (i.e., the country property of the person resource).
  • Check the Onboarding requirements guide for more information about the TIN requirements per country.

API reference

For a complete list of endpoints, properties, and examples related to the person tax identification resource, visit the following links:

Related webhook events

POST Create person tax identification

Call this endpoint to create a person tax identification for the customer with the person_id specified in the request URL. Collect the following tax information from your customers and pass them to Solaris in the request body:

  • number
  • country
  • primary

If the customer has not submitted their TIN to your solution yet (i.e., the value of number is null), then include the following properties in the request:

  • reason_no_tin: Possible values are NOT_ASSIGNED_YET, NOT_ASSIGNED_BY_COUNTRY, OTHER.
  • reason_description: Applies only if the reason_no_tin is OTHER.
  • tax_id_type: (Only for Spain) Possible values are NIE and NIF.

Request example:

Copy
Copied
POST /v1/persons/{person_id}/tax_identifications

Click here to view the full API reference.


Step 6: Complete the business identification (BKYC) process

In this step, you must do the following:

  • 6.1. Trigger the business identification process to identify the business legal entity and all legal representative(s), and make sure all legal representative(s) are successfully identified via IDnow.
  • 6.2. Implement the endpoints related to compliance questions, forward any questions (if any) to the business' legal representatives, and send the answers back to Solaris

6.1 Business identification

What is BKYC?

Solaris' BKYC solution uses RESTful APIs to perform a series of identification and compliance checks for business customers.

How does BKYC work?

The business identification consists of two asynchronous processes:

  • Legal identification: Solaris' Banking Operations team verifies the completeness and accuracy of the data submitted by the business customer and ensures that all legal representatives and ultimate beneficial owners are disclosed and linked to the business.
  • Video identification(s): All of the business' legal representatives and authorized persons must undergo a video identification session with IDnow to validate their data against their identification documents.
Important notes
  • The business must pass both of these checks before the business identification process can be considered successful.
  • Only legal representatives and authorized persons need to undergo video identification; ultimate beneficial owners are exempt from this requirement.

API reference

For a complete list of endpoints, properties, and examples related to business identification (BKYC), visit the following links:

Related webhook events

POST Initiate business identification

Call this endpoint to initiate the business identification process, which automatically triggers both the legal identification of the business and the video identification of applicable natural person(s). You have to specify the identification method in the request body. The default method is idnow.

Request URL

Copy
Copied
POST /v1/businesses/{business_id}/identifications

Response

The API response returns an identification object with a unique id representing the business identification resource and its overall status. Additionally, the payload contains individual identification objects for the video identification sessions of legal representatives, including their respective resource id, IDnow status, reference, and url for completing the process.

The payload also provides information on the legal identification process, including its dedicated legal_identification_status. You must call the API to monitor the progress of this process, particularly the legal_identification_missing_information field, where Solaris will highlight compliance questions requiring answers from the business.

Click here to view the full API reference.


6.2 Compliance questions

During the legal identification process, Solaris' legal and compliance team may require additional information from your customers. To facilitate this, you need to implement these endpoints to be able to:

  • Retrieve compliance questions from Solaris.
  • Forward the questions to your customers and collect their answers.
  • Submit the answers to Solaris.
  • Mark the identification as ready for review to resume the legal identification process.

If Solaris needs further clarification during the business identification, you will receive a notification on the BUSINESS_IDENTIFICATION webhook. To retrieve the details, call the GET Retrieve a business identification.

If Solaris has compliance questions for the business, the payload will include the following fields:

Copy
Copied
{
  "legal_identification_status": "information_required",
  "legal_identification_status_missing_information": "COMPLIANCE_QUESTIONS"
}

You must redirect these questions to your business customer and provide them with a way to answer them in your frontend.

GET Retrieve compliance questions

To get the compliance questions, call the following endpoint:

Request URL

Copy
Copied
GET /v1/businesses/{business_id}/identifications/{business_identification_id}/legal_identification/questions

Response example

The API call returns an object that includes the question(s) with a unique ID and the corresponding text. You must redirect these questions to your customers and retrieve their answers as part of your workflow. You should also provide a dedicated page for answering all questions separately.

Copy
Copied
{
  "question_id": "ebb463137becc09788dfe21fc066e670qstn",
  "question_text": "Please provide the license for security / guarding services (Bewachungsgewerbe): § 34a GewO",
  "legal_identification_id": "14eb210435e09ab7f6a06c8b9b86ce27lid",
  "business_identification_id": "4c74c804eaea5d2a2d64ef400a27a4d3bid",
  "business_id": "880bbac68a34add190786b9c74f4c82fcbiz",
  "answer_id": null,
  "answer_text": "string",
  "asked_at": "2021-07-16T13:38:06.000Z",
  "answered_at": null
}

Click here to view the full API reference.

Create answers for compliance questions

After receiving the compliance question answers from the customer, call the following endpoint to share them with Solaris. Note that you must make a separate API call for each answer.

Request URL

You have to provide the question's answer in the request body of this endpoint.

Copy
Copied
POST /v1/businesses/{business_id}/identifications/{business_identification_id}/legal_identification/questions/{question_id}/answers

Click here to view the full API reference.

PATCH Update business legal identification

Call this method to update the legal identification and mark it as ready to resume the identification process after adding all answers to the compliance questions. This endpoint changes the legal_identification_status from information_required to pending when called.

Request URL

Copy
Copied
PATCH /v1/businesses/{business_id}/identifications/{id}/legal_identification/mark_as_ready

Click here to view the full API reference.

6.3 Customer Due Diligence

Solaris conducts risk screening and customer vetting checks, known as the Customer Due Diligence process, on the business legal entity. The results are returned in the GET business resource. For more information, check the Customer Due Diligence guide.

During the CDD checks, the application status will change to cdd_pending. In case of any red or yellow status value for any of the CDD-related properties, the fronting application status will change to rejected. The application status will change to approved only if all the CDD-related properties have a green status value.


Step 7: Create business fronting loan application

In this step, you must collect the mandatory information from the business in your sign-up flow and pass this information to Solaris by creating a business fronting loan application.

The fronting loan application includes all the required information about the beneficiary, such as scoring information, loan information, and beneficiary account IBAN, which the credit scorer uses to initiate a series of credit checks.

POST Create business fronting loan application

This endpoint creates a fronting loan application and assigns it to the business with the business_id specified in the request URL.

Required properties:

The following properties are mandatory and must be added to the request body:

  • transaction_description: The transaction reference, which the recipient can see. Only use SEPA allowed characters in this field.
  • transaction_end_to_end_id: SEPA identifier (provided by the end customer who initiated the SEPA transaction), routed through the whole payment process. (string, max 35 characters without whitespace)
  • requested_amount: The amount (in EUR) requested to be paid to the recipient.
  • duration: The duration over which the loan will be repaid.
  • recipient_name: The name of the loan recipient.
  • recipient_iban: The IBAN of the loan's recipient, to which the loan will be paid out.
  • purpose: The reason for the loan application.
  • purpose_description: Additional details regarding the reasons for the loan application.
  • creditreform_pd: The business's probability of default as scored by any credit risk service provider, e.g., Creditreform.
  • creditreform_score: The business's credit score as scored by any credit risk service provider, e.g., Creditreform.

Request example

Copy
Copied
// POST /v1/businesses/{business_id}/fronting_loan_applications
{
  "creditreform_pd": "0.10",
  "creditreform_score": 2,
  "duration": 24,
  "purpose": "Buying office equipment",
  "purpose_description": "Buying office equipment for new headquarters.",
  "recipient_iban": "DE92370601930002130041",
  "recipient_name": "Daniel Schmidt",
  "requested_amount": {
    "currency": "EUR",
    "unit": "cents",
    "value": 10000
  },
  "transaction_description": "Example transaction.",
  "transaction_end_to_end_id": "DDHHDHG333243"
}

Response example

The API call returns an object with a unique id for the business fronting loan application, including the application status and the remaining attributes, which will be populated during the application lifecycle.

Click here to view the full API reference

GET Retrieve business fronting loan application

This endpoint returns the current status and details of an existing business fronting loan application. For a list of possible values of the application status and their descriptions, check the appendix.

Additionally, subscribe to the webhook event BUSINESS_FRONTING_APPLICATION to receive status updates on the application.

note
  • For customers in Germany, the application status transitions to pending, automatically triggering the credit scoring.
  • For customers in countries other than Germany, the application status transitions to scoring_pending and you have to upload such reports from your customers. If approved, the status changes to pending.

Request URL

Copy
Copied
GET /v1/businesses/{business_id}/fronting_loan_applications/{application_id}

Click here to view the full API reference

Application status flow

The following diagram shows the different statuses and transitions for a business fronting application:

Diagram: Business fronting application status


Step 8: Upload documents and link them to the loan application

In this step, you must create document resources for all the required documents, such as loan agreement, credit risk report, invoices etc., and link them to the business fronting loan application.

NOTE
  • Depending on each use case and whether it's a fronting loan or fronting factoring, Solaris' team will inform you of the additional documents you must submit.
  • You have to make a separate API request for each document.

Use the same endpoints described in Step 4 to upload the loan-related documents.

PUT Link documents to fronting application

After creating the document resources, you must link each document to the fronting loan or factoring application.

This endpoint links a document resource to the business fronting loan or factoring application. You must add the following properties in the request body:

  • document_type: The document type. For a list of possible values, check the appendix.
  • document_id: The unique ID of the document resource.

Request URL

Copy
Copied
// PUT /v1/businesses/{business_id}/fronting_loan_applications/{application_id}/documents
{
  "document_id": "69ec2a9d8dbaf5ea1b13124098a34ea3cdoc",
  "document_type": "INVOICE"
}

Click here to view the full API reference


Step 9: Link the business identification to the loan application

In this step, you must link the business identification resource to the business fronting loan application by calling the following endpoint:

PUT Link identification to loan application

This endpoint links a business identification resource to the business fronting loan application. You must add the following properties in the request body:

  • identification_id: The unique ID of the identification resource, created after triggering the business identification process.
note
  • After linking the identification resource to the loan application, the application status transitions to identification_pending.
  • After a successful BKYC process, the status changes to approved, which means that loan application is accepted, and you can trigger the loan payout process.

Request URL

Copy
Copied
// PUT /v1/businesses/{business_id}/fronting_loan_applications/{application_id}/identification
{
  "identification_id": "1063504cf74919f60ae4c806bdc9ce75bid"
}

Click here to view the full API reference


Step 10: Trigger the loan payout

After a successful business identification and the approval of the business fronting loan application, you must trigger the loan payout by calling the following endpoint.

POST Trigger loan payout

This endpoint creates a loan and triggers the loan payout process to the respective business account. You must add the following properties in the request body:

  • settlement_account_iban: Solaris' account, from which the loan amount is transferred to the customer's account.

Request URL

Copy
Copied
// POST /v1/businesses/{business_id}/fronting_loan_applications/{application_id}/payout
{
  "settlement_account_iban": "DE07110101014503906016"
}

Response example

The API call returns the loan object with the loan id. The payload contains the loan details, the IBANs of related accounts, and the status of the loan payout, which is set to payout_pending after calling this endpoint.

Click here to view the full API reference

GET Retrieve business fronting loan

This endpoint returns all the details of a business' fronting loan. Additionally, subscribe to the webhook event BUSINESS_FRONTING_LOAN_PAYOUT to receive status updates about the loan.

note
  • For a list of possible values of the status of the loan payout and their descriptions, check the appendix.

Request URL

Copy
Copied
GET /v1/businesses/{business_id}/fronting_loans/{loan_id}

Click here to view the full API reference

Money flow

After triggering the loan payout, you have to complete the money flow described below.

Accounts

The money moves between three different accounts:

  • Settlement account: A Solaris account from which the loan amount is transferred to the customer's account.
  • Collateral account: A Solaris account, but under your name.
  • Collection account: Your account.

Process

After triggering the loan payout process, you have to ensure that all transfers are executed to the relevant account:

note

The loan payout includes the loan net amount and the credit commission amount (agio) if applicable.

  1. Solaris transfers the loan amount from the settlement account to the customer account.
  2. If applicable, Solaris transfers the agio amount from the settlement account to your collection account.
  3. You must settle the full loan amount (agio + net loan amount) from your collateral account to the Solaris settlement account.
attention

The loan payout amount must equal the minimum balance of the collateral account. Otherwise, the payout will fail.

After all the transfers are executed successfully, the loan payout status changes to payout_issued. The customer should receive the loan amount to their account.


Testing

Banque de France checks (Only for France)

This section includes instructions on how to test different scenarios for the Banque de France checks.

Happy path

Complete the following steps to simulate a happy path scenario where the business would pass the Banque de France checks.

  1. Create a business resource using the following properties:

Request example

Copy
Copied
// POST /v1/businesses
{
  "name": "Business FR",
  "sector": "FOREIGN_COMPANIES",
  "legal_form": "FR_SA",
  "tax_information": {
    "registration_number": "552144503",
    "tax_country": "FR",
    "registration_issuer": "registration_issuer_fr"
  },
  "vat_number": "552144503"
}
  1. Create a person resource using the following properties:

Request example

Copy
Copied
// POST /v1/persons
{
  "first_name": "Adchilove",
  "last_name": "Toussaint",
  "salutation": "MR",
  "birth_date": "1985-07-01",
  "birth_province": "97",
  "industry": null,
  "industry_key": null,
  "nace_code": null,
  "registration_number": "registration_number_1",
  "postal_code": "1234"
}
  1. Assign the roles of legal representative and beneficial owner to the created person resource.

Request example (Legal representative)

Copy
Copied
// POST /v1/businesses/{business_id}/legal_representatives
{
  "legal_representative_id": "0ba2211cab11af6094d60ead81f2bd9dcper"
}

Request example (Beneficial owner)

Copy
Copied
// POST /v1/businesses/{business_id}/beneficial_owners
{
  "person_id": "0ba2211cab11af6094d60ead81f2bd9dcper"
}
  1. Create a fronting business loan as described in Step 6.
  2. This scenario should lead to the application passing the status scoring_pending.

Unhappy path

Complete the following steps to simulate an unhappy path scenario where the business would fail the Banque de France checks leading to a rejected status of the fronting loan application.

  1. Create a business resource using the following properties:

Request example

Copy
Copied
// POST /v1/businesses
{
  "name": "Business FR",
  "sector": "FOREIGN_COMPANIES",
  "legal_form": "FR_SA",
  "tax_information": {
    "registration_number": "234568087",
    "tax_country": "FR",
    "registration_issuer": "registration_issuer_fr"
  },
  "vat_number": "234568087" 
}
  1. Create a person resource for the legal representative and beneficial owner using the following properties:

Request example

Copy
Copied
// POST /v1/persons
{
  "first_name": "Marie",
  "last_name": "Marchand",
  "salutation": "MS",
  "birth_date": "1980-01-26",
  "birth_province": "86",
  "industry": null,
  "industry_key": null,
  "nace_code": null,
  "registration_number": "registration_number_1",
  "postal_code": "1234"
}
  1. Assign the roles to the person resource

Request example (Legal representative)

Copy
Copied
// POST /v1/businesses/{business_id}/legal_representatives
{
  "legal_representative_id": "0ba2211cab11af6094d60ead81f2bd9dcper"
}

Request example (Beneficial owner)

Copy
Copied
// POST /v1/businesses/{business_id}/beneficial_owners
{
"person_id": "0ba2211cab11af6094d60ead81f2bd9dcper"
}
  1. Create a fronting business loan as described in Step 6.
  2. This scenario should lead to the application reaching the status rejected.

What's next?

Congratulations! You've successfully integrated Solaris' business fronting Loans solution.

Check the following appendices section for additional information on enums and testing data.

For an overview of Solaris' lending products, check the lending products overview page.

Useful resources

Check the following links for additional related guides and API reference documentation.


Appendix I: Enums

Business fronting loan application status

The following table includes the enums for the field status and their descriptions in the business fronting loan application resource. For example, it's available when you call the GET Retrieve business fronting loan application.

Status Description
scoring_pending The company's relevant risk reports must be uploaded and linked to the fronting loan application. After the risk reports are approved, the status transitions to pending. This status is only for countries other than Germany.
pending The application has been successfully created, and the business identification is yet to be completed.
identification_pending The business identification has been linked to the application, the flow has been triggered, and the customer must complete it.
cdd_pending Solaris is currently running the Customer Due Diligence (CDD) checks for the business. The application status could change to rejected in case any of the CDD checks fails.
approved The business credit scoring and/or identification process have been completed successfully, and the fronting loan application is approved.
rejected The business risk reports have been rejected and/or identification has failed, and the fronting loan application is rejected.
loan_created The loan payout process has been triggered.

Business fronting loan payout status

The following table includes the enums for the field status and their descriptions for the business fronting loan payout. For example, it's available when you call the GET Retrieve business fronting loan.

Status Description
payout_pending The business loan payout has been triggered.
payout_issued All transfers to the relevant accounts are completed, and the loan is paid out to the business.

CRS company type

The field crs_company_type is required to collect the mandatory tax information and create the business tax_identification resource. The following table includes the possible values for this field and their descriptions:

Enum Description
FE_REPORTING Reporting financial institution.
FE_NON_REPORTING Non-reporting financial institution.
NFE_ACTIVE_OTHER Active NFE - A corporation whose shares are regularly traded on at least one recognized stock exchange (or a company affiliated with it), a government entity, an international organization, a central bank, or a legal entity wholly owned by NFE
NFE_PASSIVE Passiver NFE Passive NFE - Non-active NFE
NFE_PASSIVE_INVESTMENT Inactive NFE/NFFE or an Investment Entity that is a Financial Institution in a jurisdiction not participating in the CRS and that is managed by another Financial Institution

Document types

The following table includes the possible values for the field document_type and their descriptions.

Enum Description
ANNUAL_FINANCIAL_STATEMENT A business or a company's annual financial statement.
KYC_REPORT The KYC report generate after a successful customer identification.
ID_DOCUMENT An person's identification document, such as passport or ID.
SIGNATURE A signature example.
PICTURE A picture or a scanned document of any other type.
QES_DOCUMENT A document related to a Qualified Electronic Signature (QES).
SIGNED_CONTRACT A signed contract of any kind.
SIGNED_QES_DOCUMENT A document signed by a Qualified Electronic Signature (QES).
REGISTER_CHECK A register check.
REGISTER_EXTRACT A business or a company's commercial register excerpt or a similar document.
FOUNDATION_DOCUMENT The foundation document of a company or business.
SCHUFA_COMPACT_REPORT A compact SCHUFA report.
SCHUFA_GWG_REPORT A GWG SCHUFA report.
SCHUFA_FULL_REPORT A full SCHUFA report about a person.
SCHUFA_SHORT_REPORT A short SCHUFA report about a person.
CREDIT_AGENCY_REPORT A report issued by a credit agency.
SHARE_HOLDERS_AGREEMENT A business or a company's shareholders agreement.
SHAREHOLDERS_LIST A business or a company's shareholders list.
TRADING_LICENSE A business or a company's trading license.
TRANSPARENCY_REGISTER_EXTRACT An extract of a transparency register.
INVOICE An invoice of any kind.
OTHER Any other type of document.
VIDEO A video of any kind.
VAT_CERTIFICATE VAT registration certificate

Idnow status

The following table includes the possible values for the field status for the video identification process carried out by IDnow and the related description of each status.

Status Description
created The identification resource has been created for the customer.
pending The identification process has been triggered and the video identification URL and reference are generated. You must redirect the customer to the URL to complete the identification process with IDnow.
pending_failed The identification is currently under review. You cannot offer banking services to the customer at this stage. The identification might eventually turn to successful, but it is unlikely.
successful The video identification was successful. The customer can be onboarded. Please note that the customer's data might have been updated during the identification session.
aborted The customer aborted the identification process. The customer can still video-identify using the same URL.
canceled The provider canceled the video identification. The customer should video-identify again using the same URL.
failed The identification was unsuccessful. You cannot onboard the customer or offer any banking services to them.

IDnow provides a reason whenever the identification has a canceled or aborted status. No reason can be disclosed for the final failed status.

Tax country

The following tables includes the possible values for the field tax_country:

Enum Country
DE Germany
IT Italy
AT Austria
GB United Kingdom
CZ Czech Republic
FR France
BE Belgium
LU Luxembourg
NL The Netherlands
ES Spain
PT Portugal

Sector

The following are the possible values for the field sector.

  • ECONOMICALLY_SELF_EMPLOYED
  • ECONOMIC_DEPENDENT
  • FOREIGN_COMPANIES
  • FOREIGN_ECONOMIC_DEPENDENT
  • FOREIGN_PRIVATE_INDIVIDUAL
  • FOREIGN_SELF_EMPLOYED_PRIVATE_PERSON
  • GERMAN_BANKS
  • MUNICIPALITY_AND_MUNICIPALITY_ASSOCIATION
  • OTHER_COMPANIES_WORKMAN
  • OTHER_COMPANIES
  • OTHER_PRIVATE_INDIVIDUAL

Legal form

The selected value for the field tax_country influences the accepted values for the field legal_form. The following are the possible values for the field legal_form per each tax_country.

Austria (AT)

  • AT_SE
  • AT_OHG
  • AT_KG
  • AT_AG
  • AT_GESMBH
  • AT_EG
  • AT_GBR
  • AT_EV
  • AT_SOLE_PROPRIETORSHIP
  • AT_SELF_EMPLOYED
  • AT_AMT
  • AT_KOR
  • AT_STIFTUNGEN
  • AT_GMBH
  • AT_GMBH_CO_KG

Belgium (BE)

  • BE_SNC
  • BE_SCS
  • BE_SA
  • BE_SPRL
  • BE_SE
  • BE_SCA
  • BE_SC
  • BE_SCRI
  • BE_SEP
  • BE_SF
  • BE_SPRLU
  • BE_SOLE_PROPRIETORSHIP
  • BE_SELF_EMPLOYED

Bulgaria (BG)

  • BG_AD
  • BG_OOD
  • BG_KDA
  • BG_KD
  • BG_SD
  • BG_SELF_EMPLOYED
  • BG_SOLE_PROPRIETORSHIP

Croatia (HR)

  • HR_DD
  • HR_DOO
  • HR_JDOO
  • HR_KD
  • HR_JTD
  • HR_SELF_EMPLOYED
  • HR_SOLE_PROPRIETORSHIP
  • HR_ORTA

Czech Republic (CZ)

  • CZ_AS
  • CZ_SRO
  • CZ_KS
  • CZ_VOS
  • CZ_DRUZSTVO
  • CZ_FYZICKA_OSOBA
  • CZ_SOLE_PROPRIETORSHIP
  • CZ_SELF_EMPLOYED

France (FR)

  • FR_AE
  • FR_EI
  • FR_SNC
  • FR_SCS
  • FR_SA
  • FR_SAS
  • FR_SARL
  • FR_SE
  • FR_SCA
  • FR_EURL
  • FR_SC
  • FR_SCOP
  • FR_SELARL
  • FR_SOLE_PROPRIETORSHIP
  • FR_SELF_EMPLOYED

Germany & others

Solaris accepts the following legal forms for companies in Germany and other countries that are not specified in our system:

  • AG
  • EG
  • EK
  • EV
  • NEV
  • GBR
  • GMBH
  • GMBH_CO_KG
  • GMBH_I_GR
  • KG
  • KGAA
  • LTD
  • MUNICIPALITY
  • MUNICIPAL_COMPANY
  • NONE
  • OHG
  • PARTG
  • PRIVATE_PERSON
  • SAVINGS_BANK
  • SE
  • SELF_EMPLOYED
  • SOLE_PROPRIETORSHIP
  • UG
  • UG_I_GR
  • FOREIGN_CORPORATION
  • ADOR
  • AMT
  • KDOR
  • STIFTUNGEN
  • SECOKG
  • AGCOKG

Hungary (HU)

  • HU_NYRT
  • HU_KFT
  • HU_BT
  • HU_KKT
  • HU_SOLE_PROPRIETORSHIP
  • HU_SELF_EMPLOYED
  • HU_ORTA

Italy (IT)

  • IT_SE
  • IT_SNC
  • IT_SAS
  • IT_SPA
  • IT_SRL
  • IT_SAPA
  • IT_SCPA
  • IT_SCARL
  • IT_SCOP
  • IT_SS
  • IT_SOLE_PROPRIETORSHIP
  • IT_SELF_EMPLOYED

Luxembourg (LU)

  • LU_SNC
  • LU_SCS
  • LU_SA
  • LU_SARL
  • LU_SE
  • LU_SCA
  • LU_SCSP
  • LU_SARLS
  • LU_SC
  • LU_SCOP
  • LU_SOLE_PROPRIETORSHIP
  • LU_SELF_EMPLOYED
  • LU_SECA
  • LU_ASBL
  • LU_FON
  • LU_SP

Poland (PL)

  • PL_SA
  • PL_SPZOO
  • PL_SE
  • PL_SKA
  • PL_SPK
  • PL_SPJ
  • PL_SELF_EMPLOYED
  • PL_OTHER

Portugal (PT)

  • PT_SNC
  • PT_SC
  • PT_SA
  • PT_LDA
  • PT_SE
  • PT_SUNI
  • PT_EIRL
  • PT_SCIV
  • PT_COP
  • PT_SOLE_PROPRIETORSHIP
  • PT_SELF_EMPLOYED

Romania (RO)

  • RO_SA
  • RO_SRL
  • RO_SCA
  • RO_SCS
  • RO_SNC
  • RO_SELF_EMPLOYED
  • RO_SOLE_PROPRIETORSHIP

Serbia (RS)

  • RS_AD
  • RS_DOO
  • RS_KD
  • RS_OD
  • RS_SELF_EMPLOYED
  • RS_SOLE_PROPRIETORSHIP

Slovenia (SI)

  • SI_DD
  • SI_DOO
  • SI_KDD
  • SI_KD
  • SI_DNO
  • SI_SELF_EMPLOYED
  • SI_SOLE_PROPRIETORSHIP

Spain (ES)

  • ES_SRC
  • ES_SC
  • ES_SA
  • ES_SAS
  • ES_SRL
  • ES_SE
  • ES_SCA
  • ES_SLNE
  • ES_SAU
  • ES_SLU
  • ES_SPRO
  • ES_SCOP
  • ES_SOLE_PROPRIETORSHIP
  • ES_SELF_EMPLOYED

Switzerland (CH)

  • CH_DE_AG
  • CH_FR_SA
  • CH_IT_SA
  • CH_DE_GMBH
  • CH_FR_SARL
  • CH_IT_SAGL
  • CH_SE
  • CH_DE_KOMAG
  • CH_FR_SCA
  • CH_IT_SACA
  • CH_DE_KG
  • CH_FR_SCM
  • CH_IT_SAC
  • CH_DE_KIG
  • CH_FR_SNC
  • CH_IT_SNC
  • CH_DE_EG
  • CH_FR_SS
  • CH_IT_SS
  • CH_SELF_EMPLOYED
  • CH_SOLE_PROPRIETORSHIP
  • CH_DE_KMG

The Netherlands (NL)

  • NL_VOF
  • NL_CV
  • NL_NV
  • NL_BV
  • NL_SE
  • NL_CVOA
  • NL_COPV
  • NL_MTS
  • NL_SOLE_PROPRIETORSHIP
  • NL_SELF_EMPLOYED
  • NL_VERENIGING
  • NL_STICHT

Turkey (TR)

  • TR_ADI_SIR
  • TR_AS
  • TR_LS
  • TR_KOM_STI
  • TR_KOLL_STI
  • TR_SELF_EMPLOYED
  • TR_SOLE_PROPRIETORSHIP

United Kingdom

  • GB_SE
  • GB_PARTNERSHIP
  • GB_LP
  • GB_PLC
  • GB_LTD
  • GB_COPS
  • GB_UAS
  • GB_PRCU
  • GB_PUCU
  • GB_SOLE_PROPRIETORSHIP
  • GB_SELF_EMPLOYED

Sector, tax country, and legal form mapping

Please note that there are certain dependencies between the fields tax_country, sector, and legal_form. For example, based on the value selected for the field tax_country, certain values will be accepted for the field sector, and based on the value selected for the field sector, certain values will be accepted for the field legal_form.

The following sections give an overview of the mapping between these fields.

Tax country and sector mapping

The selected value for the field tax_country influences the accepted values for the field sector. The following table gives an overview about the mapping of values between the field tax_country and sector.

Tax country Allowed values for sector
DE
  • ECONOMICALLY_SELF_EMPLOYED
  • ECONOMIC_DEPENDENT
  • GERMAN_BANKS
  • MUNICIPALITY_AND_MUNICIPALITY_ASSOCIATION
  • OTHER_COMPANIES_WORKMAN
  • OTHER_COMPANIES
  • OTHER_PRIVATE_INDIVIDUAL
All other countries
  • FOREIGN_COMPANIES
  • FOREIGN_ECONOMIC_DEPENDENT
  • FOREIGN_PRIVATE_INDIVIDUAL
  • FOREIGN_SELF_EMPLOYED_PRIVATE_PERSON

Sector and legal form mapping

The selected value for the field sector influences the accepted values for the field legal_form. The following table gives an overview about the mapping of values between the field sector and legal_form.

Sector Allowed values for legal form
OTHER_COMPANIES
  • AG
  • EG
  • GBR
  • GMBH_CO_KG
  • GMBH_I_GR
  • GMBH
  • KG
  • KGAA
  • LTD
  • OHG
  • PARTG
  • SE
  • UG_I_GR
  • UG
OTHER_COMPANIES_WORKMAN
  • EK
  • GBR
  • LTD
  • SELF_EMPLOYED
  • SOLE_PROPRIETORSHIP
FOREIGN_COMPANIES
  • FOREIGN_CORPORATION
  • NONE
GERMAN_BANKS
  • SAVINGS_BANK
MUNICIPALITY_AND_MUNICIPALITY_ASSOCIATION
  • MUNICIPALITY
  • MUNICIPAL_COMPANY
ECONOMICALLY_SELF_EMPLOYED
  • EK
  • GBR
  • SELF_EMPLOYED
  • SOLE_PROPRIETORSHIP
NON_PROFIT_ORGANIZATION
  • EV
  • NEV

Legal identification status

The following table includes the possible values for the field legal_identification_status for the legal identification process of the business legal entity carried out by Solaris and the related description of each status.

Status Description
created The legal identification was initiated and will be conducted shortly.
information_required The legal identification cannot be conducted because Solaris is missing one or more required documents. Refer to the legal_identification_missing_information array to determine which document(s) is/are missing.
blocked_internally The legal identification is put on hold due to additional internal checks
successful The legal identification was conducted successfully.
failed The legal identification was marked as failed. Refer to the legal_identification_reason to find out why.
expired The legal identification was not updated to terminal status in 90 days

NACE code

The Statistical Classification of Economic Activities in the European Community, commonly known as NACE, is the industry standard classification system used in the European Union.

NACE uses four hierarchical levels:

  • Level 1: 21 sections identified by alphabetical letters A to U;
  • Level 2: 88 divisions identified by two-digit numerical codes (01 to 99);
  • Level 3: 272 groups identified by three-digit numerical codes (01.1 to 99.0);
  • Level 4: 629 classes identified by four-digit numerical codes (01.11 to 99.00).

The first four digits of the code, which is the first four levels of the classification system, are the same in all European countries. National implementations may introduce additional levels. The fifth digit might vary from country to country and further digits are sometimes placed by suppliers of databases.

For example, if the NACE code A 01.11 (Growing of cereals (except rice), leguminous crops and oil seeds) would apply to the person/business, supply the value like such:

nace_code = "A 01.11"

Please visit this site for the list of values of NACE codes values you need to implement in your solution. The list is available in multiple languages.

NACE codes are mandatory for B2B and freelancer customers in Germany, Italy, and Spain. For France, NACE codes are excluded due to the usage of different coding system CODE NAF.

info

Please note that using NACE codes replaces using the fields industry and industry_key.

Solarisident status

The following table includes the possible values for the field status, which refers to the overall status of the business identification process (BKYC), including the legal identification of the business legal entity carried out by Solaris and the video identification of the business's natural persons.

Status Description
created The legal identification was initiated and will be conducted shortly.
pending A business identification (solarisIdent) is mark_as_successful by partner
successful Both steps of the business identification process (solarisIdent) were completed successfully.
failed The business identification process (solarisIdent) will not continue. The business couldn't be identified. A reason will not be provided. Verify the status of either the legal identification or the individual video identifications instead.
expired The business identification process (solarisIdent) was not completed within six months of being initiated. Either the legal identification or one of the individual video identifications was not finished on time.

Appendix II: BKYC required documents

The following table includes the required documents for identification for each legal form:

Legal form Required documents - Descriptions Required documents - Enum values Notes
ADOR
  • ID or passport of the fictitious Beneficial Owner.
  • Proof of Address of the fictitious Beneficial Owner, not older than 6 weeks.
  • Articles of Association (statute).
  • Organization chart.
  • ID_DOCUMENT
  • PROOF_OF_ADDRESS
  • FOUNDATION_DOCUMENT
  • REGISTER_EXTRACT
AG
  • ID or passport of all Beneficial Oowners.
  • Proof of Address of all Beneficial Owners, not older than 6 weeks.
  • Shareholder lists of Beneficial Owner companies. Possibly also an overview of the shareholder/owner structure if it extends over several levels.
  • Articles of Association (Gesellschaftsvertrag).
  • Certificate of Incorporation (Gründungsurkunde).
  • Excerpt from the commercial register.
  • Legitimation documents of the board of directors.
  • ID_DOCUMENT
  • PROOF_OF_ADDRESS
  • SHAREHOLDERS_LIST
  • FOUNDATION_DOCUMENT
  • FOUNDATION_DOCUMENT
  • REGISTER_EXTRACT
  • REGISTER_EXTRACT
Document must include a notarial stamp, seal, and signature.
EG
  • ID or passport of the authorized representative.
  • Proof of Address of authorized representatives, not older than 6 weeks.
  • Excerpt from the register of cooperatives.
  • Articles of Association or Articles of Incorporation.
  • ID_DOCUMENT
  • PROOF_OF_ADDRESS
  • REGISTER_EXTRACT
  • FOUNDATION_DOCUMENT
EK
  • ID or passport of the business person.
  • Proof of Address, not older than 6 weeks (private and business if different).
  • Excerpt from the commercial register, not older than 2 weeks.
  • ID_DOCUMENT
  • PROOF_OF_ADDRESS
  • REGISTER_EXTRACT
EV
  • Identity card or residence permit of all Beneficial Owners.
  • Proof of Address, not older than 6 weeks.
  • List of board members.
  • Excerpt from the register of associations (Vereinsregister), not older than three months.
  • Statutes of the Association (Vereinssatzung).
  • Legitimation documents of the acting board members.
  • Signed founding protocol
  • (For associations in formation) List of members (min. 7 persons).
  • ID_DOCUMENT
  • PROOF_OF_ADDRESS
  • SHAREHOLDERS_LIST
  • REGISTER_EXTRACT
  • FOUNDATION_DOCUMENT
  • REGISTER_EXTRACT
  • FOUNDATION_DOCUMENT
  • OTHER
GBR
  • ID or passport of all shareholders.
  • Proof of Address of all shareholders, not older than 6 weeks.
  • Shareholder lists of Beneficial Owner companies. Possibly also an overview of the shareholder/owner structure if it extends over several levels.
  • Articles of association (Gesellschaftsvertrag).
  • Certificate of incorporation (Gründungsurkunde).
  • ID_DOCUMENT
  • PROOF_OF_ADDRESS
  • SHAREHOLDERS_LIST
  • FOUNDATION_DOCUMENT
  • FOUNDATION_DOCUMENT
Documents must be signed by all business partners. Solaris may request additional information based on the document contents (e.g., all shareholders, distribution of shares, etc). For GmbH/UG & Co. KGs, these requirements apply to the entity that is registered in the trade register as shareholder (i.e., Komplementär-Gesellschafter ).
GMBH
  • ID or passport of all persons listed in the commercial register.
  • Proof of Address of Legal Representatives, not older than 6 weeks.
  • List of shareholders (of Beneficial Owners, companies, potentially also an overview of the shareholder/owner structure if it extends over several levels).
  • Articles of Association (Gesellschaftsvertrag).
  • Certificate of Incorporation (Gründungsurkunde).
  • ID_DOCUMENT
  • PROOF_OF_ADDRESS
  • SHAREHOLDERS_LIST
  • FOUNDATION_DOCUMENT
  • FOUNDATION_DOCUMENT
GMBH_I_GR
  • ID or passport of all persons listed in the commercial register.
  • Proof of Address of all persons listed in the commercial register, not older than 6 weeks.
  • Shareholder lists of Beneficial Owner companies. Possibly also an overview of the shareholder/owner structure if it extends over several levels.
  • Articles of Association (Gesellschaftsvertrag).
  • Certificate of Incorporation (Gründungsurkunde).
  • ID_DOCUMENT
  • PROOF_OF_ADDRESS
  • SHAREHOLDERS_LIST
  • FOUNDATION_DOCUMENT
  • FOUNDATION_DOCUMENT
GMBH_CO_KG
  • ID or passport of all Beneficial Owners (i.e., general partners and limited partners).
  • Proof of Address of all Beneficial Owners, not older than 6 weeks.
  • Excerpt from the commercial register for the GmbH & Co.KG.
  • Articles of association (Gesellschaftsvertrag) of the GmbH & Co. KG.
  • Certificate of incorporation (Gründungsurkunde).
  • Excerpt from the commercial register of the general partner GmbH.
  • List of shareholders or founding agreement of the general partner GmbH.
  • ID_DOCUMENT
  • PROOF_OF_ADDRESS
  • REGISTER_EXTRACT
  • FOUNDATION_DOCUMENT
  • FOUNDATION_DOCUMENT
  • REGISTER_EXTRACT
  • SHAREHOLDERS_LIST
Document must include a notarial stamp, seal, and signature.
KDOR
  • ID or passport of the fictitious Beneficial Owner.
  • Proof of Address of the fictitious Beneficial Owner, not older than 6 weeks.
  • Articles of Association (statute).
  • Organization chart.
  • ID_DOCUMENT
  • PROOF_OF_ADDRESS
  • FOUNDATION_DOCUMENT
  • REGISTER_EXTRACT
KGAA
  • ID or passport of all shareholders.
  • Proof of Address of all authorized representatives and managing directors, not older than 6 weeks.
  • Commercial register extract.
  • Articles of Association (Gesellschaftsvertrag).
  • List of shareholders.
  • Legitimation document of the authorized representatives and managing directors.
  • ID_DOCUMENT
  • PROOF_OF_ADDRESS
  • REGISTER_EXTRACT
  • FOUNDATION_DOCUMENT
  • SHAREHOLDERS_LIST
  • REGISTER_EXTRACT
LTD
  • ID or passport of all Beneficial Owners.
  • Proof of Address of all shareholders, not older than 6 weeks.
  • Apostille by the English Ministry of Foreign Affairs + certificate from an officially appointed/sworn translator.
  • Memorandum/Articles of Association.
  • Certificate of Incorporation (for an Ltd. that is registered in the English House of Companies).
  • Excerpt from the commercial register (for an Ltd. that is registered in the German commercial register).
  • Legitimation documents of the managing directors.
  • ID_DOCUMENT
  • PROOF_OF_ADDRESS
  • OTHER
  • FOUNDATION_DOCUMENT
  • FOUNDATION_DOCUMENT
  • REGISTER_EXTRACT
  • REGISTER_EXTRACT
Document must include a notarial stamp, seal, and signature.
MUNICIPAL_COMPANY
  • ID or passport of all Legal Representatives.
  • Proof of Address of all Legal Representatives, not older than 6 weeks.
  • Certificate of Incorporation.
  • Further documents may be required, such as a commercial register extract, company agreement, business registration, etc., depending on the legal form of the municipal company.
  • ID_DOCUMENT
  • PROOF_OF_ADDRESS
  • FOUNDATION_DOCUMENT
  • ...
The document requirements are dependent on the legal form of the company. For the onboarding of a municipal company, please check the relevant requirements in this table for the specific legal form.
MUNICIPALITY
  • ID or passport of the Mayor.
  • Proof of Address of the Mayor, not older than 6 weeks.
  • A resolution of the municipal council in regards to the Mayor's power of representation.
  • ID_DOCUMENT
  • PROOF_OF_ADDRESS
  • OTHER
NEV
  • List of board members.
  • Statutes of the Association.
  • Minutes of last meeting of members.
  • REGISTER_EXTRACT
  • FOUNDATION_DOCUMENT
  • OTHER
OHG & KG
  • ID or passport of all shareholders.
  • Proof of Address for all shareholders, not older than 6 weeks.
  • Commercial register extract.
  • Articles of Association (Gesellschaftsvertrag).
  • List of shareholders.
  • Legitimation document of the managing directors.
  • ID_DOCUMENT
  • PROOF_OF_ADDRESS
  • REGISTER_EXTRACT
  • FOUNDATION_DOCUMENT
  • SHAREHOLDERS_LIST
  • REGISTER_EXTRACT
PARTG
  • ID or passport of all Beneficial Owners and all partners authorized to represent.
  • Excerpt from the Partnership Register.
  • Partnership agreement.
  • ID_DOCUMENT
  • REGISTER_EXTRACT
  • FOUNDATION_DOCUMENT
Document must include a notarial stamp, seal, and signature.
PRIVATE_PERSON
  • ID or passport.
  • Proof of Address, not older than 6 weeks.
  • ID_DOCUMENT
  • PROOF_OF_ADDRESS
SAVINGS_BANK
  • ID or passport of all Legal Representatives.
  • Proof of Address for all Legal Representatives, not older than 6 weeks.
  • Approval of the higher legal supervisory authority. The permission to conduct banking business can be found on the BaFin website (BaFin ID).
  • Further documents may be required, such as an extract from the commercial register, company agreement, business registration, etc., depending on the business' legal form.
  • ID_DOCUMENT
  • PROOF_OF_ADDRESS
  • OTHER
  • ...
SE
  • ID or passport of all Beneficial Owners and board members.
  • Proof of Address for all board members, not older than 6 weeks.
  • Shareholder lists of Beneficial Owner companies. Possibly also an overview of the shareholder/owner structure if it extends over several levels.
  • Articles of Association (Gesellschaftsvertrag).
  • Certificate of Incorporation (Gründungsurkunde).
  • Excerpt from the commercial register.
  • ID_DOCUMENT
  • PROOF_OF_ADDRESS
  • SHAREHOLDERS_LIST
  • FOUNDATION_DOCUMENT
  • FOUNDATION_DOCUMENT
  • REGISTER_EXTRACT
Document must include a notarial stamp, seal, and signature.
SELF_EMPLOYED
  • ID or Passport.
  • Proof of Address, not older than 6 weeks (both private and business addresses if they are different).
  • Business registration (for self-employed entrepreneurs).
  • Excerpt from the commercial register (for self-employed entrepreneurs).
  • Proof from the tax office (Finanzamt) regarding freelancing activity (Freiberufler).
  • ID_DOCUMENT
  • PROOF_OF_ADDRESS
  • FOUNDATION_DOCUMENT
  • REGISTER_EXTRACT
  • VAT_CERTIFICATE
SOLE_PROPRIETORSHIP
  • ID or Passport.
  • Proof of Address, not older than 6 weeks (both private and business addresses if they are different).
  • Business registration (for self-employed entrepreneurs).
  • Excerpt from the commercial register (for self-employed entrepreneurs).
  • Proof from the tax office (Finanzamt) regarding freelancing activity (Freiberufler).
  • ID_DOCUMENT
  • PROOF_OF_ADDRESS
  • FOUNDATION_DOCUMENT
  • REGISTER_EXTRACT
  • VAT_CERTIFICATE
UG
  • ID or passport of the managing director.
  • Shareholder lists of Beneficial Owner companies. Possibly also an overview of the shareholder/owner structure if it extends over several levels.
  • Articles of Association (Gesellschaftsvertrag).
  • Certificate of Incorporation (Gründungsurkunde).
  • Excerpt from the commercial register.
  • ID_DOCUMENT
  • SHAREHOLDERS_LIST
  • FOUNDATION_DOCUMENT
  • FOUNDATION_DOCUMENT
  • REGISTER_EXTRACT
Document must include a notarial stamp, seal, and signature.
UG_CO_KG
  • ID or passport of the managing director.
  • Shareholder lists of Beneficial Owner companies. Possibly also an overview of the shareholder/owner structure if it extends over several levels.
  • Articles of Association (Gesellschaftsvertrag).
  • Certificate of Incorporation (Gründungsurkunde).
  • Excerpt from the commercial register.
  • ID_DOCUMENT
  • SHAREHOLDERS_LIST
  • FOUNDATION_DOCUMENT
  • FOUNDATION_DOCUMENT
  • REGISTER_EXTRACT
Document must include a notarial stamp, seal, and signature.
UG_I_GR
  • ID or passport of all persons listed in the commercial register.
  • Proof of Address for all persons listed in the commercial register, not older than 6 weeks.
  • Shareholder lists of Beneficial Owner companies. Possibly also an overview of the shareholder/owner structure if it extends over several levels.
  • Articles of Association (Gesellschaftsvertrag).
  • Certificate of Incorporation (Gründungsurkunde).
  • Excerpt from the commercial register.
  • ID_DOCUMENT
  • PROOF_OF_ADDRESS
  • SHAREHOLDERS_LIST
  • FOUNDATION_DOCUMENT
  • FOUNDATION_DOCUMENT
  • REGISTER_EXTRACT
Document must include a notarial stamp, seal, and signature.

Appendix III: Testing samples for GET Search for business commercial registration

The following table includes testing samples for the GET Search for business commercial registration endpoint, including values for the fields country, registration_number, registration_issuer, and name.

Country Registration number Registration issuer Company name
DE HRB198673 MÜNCHEN FLOOR 13 GMBH
DE HRA23670 BERLIN OHG Erich-Steinfurth-Strasse 7
DE HRA4029 WITTLICH SG-AUTO-WASCHTREFF WERNER KG
DE HRB571744 STUTTGART Klima Investment GmbH & Co. KGaA
DE HRB18686 Bonn Tekcor 1. V V UG (haftungsbeschraenkt)
DE HRB54636 DUESSELDORF AF Azurit AG
DE HRA204605 Stiftung St., Joseph Stift, Stiftung kirchlichen Rechts
DE HRA94238 HAMBURG PR-AUTO Peter Reimann e.K.
ES A46103834 ---- MERCADONA SA
ES N00434391 ---- HYUNDAI MOTOR EUROPE SE
ES B17262213 ---- AUTOLINE SOCIEDAD LIMITADA
ES B19202969 ---- SEIJAS ALONSO YA CIA, S.R.C.
ES G91487967 ---- CASAS Y CAMPOS S.C.
ES W2501222J ---- COLLIERS INTERNATIONAL INVESTMENT & ASSET MANAGEMENT
ES D81586729 ---- COLGATE PALMOLIVE HOLDING S COM P A
FR 513937359 ---- PARISOL
FR 332199462 ---- NATIOCREDIMURS - SOCIETE EN NOM COLLECTIF
FR 582051843 ---- GASTINNE RENETTE SOCIETE EN COMMANDITE SIMPLE
FR 304463284 ---- AVENTIS PHARMA S.A.
FR 807956966 ---- MENTION PARC AUTO
FR 539358994 ---- SOCIETE EN COMMANDITE PAR ACTIONS ETCHE ONA
FR 438755092 ---- SOC EUROPEEN DE BREVETS AUTOMOBILES SE
IT TO824350 ---- BUSINESS NETWORK S.P.A.
IT ME247881 ---- TORO S.C.R.L.
IT GE447187 ---- SOCIET SEMPLICE MONT BLANC
IT PN51072 ---- S.N.C. GEFCO DI LUIGI DAL BON & C
IT AO43300 ---- CALDARELI SERVIZI ASSICURATIVI S.A.A DI VALTER CALDARELLI
IT MI1712979 ---- LUIGI DE PRA S.A.P.A
IT AN146244 ---- FIAT SERVIZI PER L'INDUSTRIA S.C.P.A O SEMPLICEMENTE SE.P.IN
IT FI514669 ---- SCLE DELTA TRAZIONE SOCIETA' CONSORTILE A RESPONSABILITA
IT TO1215674 ---- S.R.L. SPORTIVA DILETTANTISTICA SPORT LAB
IT TP131030 ---- MAIORANNA GIUSEPPE PICCOLO IMPRENDITORE EDILE
note

For non DEcompanies, the registration_issuer is not necessary.


Appendix IV: FAQs

Legal Representative FAQs

The company I am about to register is a „Gesellschaft mit beschränkter Haftung“ (GmbH) – who is my legal representative?

The easiest and surest way to figure that out is to check your current register excerpt (Handelsregisterauszug). In there you'll find all the official legal representatives which you would need to tell us. As a further indication, these people also need to be listed in the Imprint of your website (Impressum).

The Legal Representative has sole representations rights – do I need to add the other legal representatives as well?

Yes. Even though this legal representative could conclude the process on behalf of the company alone in the following steps, Solaris would need the complete set of information for regulatory purposes. Therefore, please enter the information about all legal representatives associated with the business.

One of our legal representatives is currently unavailable – do we need to reach them to complete the process?

Yes. All legal representative(s) must be identified in a video identification session to complete the business identification process(BKYC).

Our legal representatives are about to change soon – shall I include the new ones already?

No; please submit the information as it is currently written in the official register. If you already know that these individuals will change, then please inform your Onboarding manager accordingly, and they will help sort things out.

Why do I have to submit all legal representatives here?

As a bank, Solaris is obliged to keep a record about the companies it works with and check whether the provided information is correct. Solaris makes every effort to keep the flow as smooth as possible. Nevertheless, the law stipulates that Solaris must collect this information for all legal representatives.

Ultimate Beneficial Owner FAQs

What is a “Beneficial Owner”?

A so-called “Beneficial Owner” is a natural person (a human) who owns directly or indirectly more than 25% of the voting shares of a legal entity today. Ultimately it is the person who benefits from the entered agreement and has the eventual decision power. It can never be another company, as Solaris would need to look up the owner of that company. There is a more detailed (legally-worded) definition here as well. It may significantly help cases with beneficial owners incorporated as trusts or other non-commercial entity types.

The company has no beneficial owners – how should I proceed?

It might be the case after a thorough investigation that nobody has directly or indirectly enough voting shares of the business. In that case, Solaris is required to take the legal representatives instead. Please enter their information accordingly.

I don't know the ownership structure of the company – how shall I proceed?

Ultimately, the ownership structure of a company is determined in the shareholder agreement (Gesellschaftervertrag), which has been signed at least when founding the entity. In the meantime, this may have changed but would need to be noted in an amendment or update of this contract.

Another company owns the company – what shall I do now?

Please submit the information of the natural person (human) owning your shareholders. If this is also another company (holding- or corporate-structure), you would need to follow the trail of indirect ownership until you either find an individual or the ownership is diluted under 25% ownership (through indirect ownership).

What do you mean by direct or indirectly & how do I calculate that?

Direct ownership refers to a natural person (individual) owning him-/herself voting shares in the business. Indirect ownership refers to somebody owning one entity that then owns a specific part of the business. It also qualifies if the entities are stacked into each other (several companies in between). Also, if one individual holds voting shares via different entities in the business, you would need to add up his/ her total indirect ownership to see whether the total engagement reaches more than 25%. When the shareholding structure is stacked over several hierarchies, you multiply the ownership-quotas of each entity to get the ultimate quota for the respective person.

Example:

Adello GmbH needs to provide its beneficial owners. Adello's shareholders are Peter 30% of shares, Susi 10% of shares, Anne 10% of shares, and Toscana GmbH 50% of shares. Toscana's shareholders: Hugo 75% of shares and Marie 25% of shares Direct beneficial owners of Adello: Peter Indirect beneficial owners of Adello: Hugo with 37,5% of shares (Toscana's share in Adello 50% x Hugo's ownership quota in Toscana 75%). Please note that Marie is not a beneficial owner as she has indirectly only 12,5% in Adello.

We have different kinds of shares – which shares are the decisive ones?

Please refer to the shares with decisive voting power as the beneficial owner is ultimately the person deciding the significant strokes of the company.

Does the UBO need to do something, for instance, sign something or perform a video identification?

No, please only submit the information of that person as stated in his/her official documents (ID card or passport). There is no further double-checking of that information. Therefore, the beneficial owner does not need to do anything during this identification process.