A business example
A bank asks a new company customer to explain why the person signing its account form differs from the main shareholder.
Entity identity
The bank checks the company's formation and identity records.
Authority
The company supplies the basis for the signatory's authority.
Ownership and control
The company explains its ownership chain and relevant controlling persons.
What this shows
A signatory, director and beneficial owner may be different people. A consistent document trail helps explain their different roles.
What it is often confused with
Submitting documents once does not mean information never needs updating or further explanation.
What to look at in your business
Keep identity and ownership particulars consistent with the institution's request.
Context and further reading
RBI: Know Your Customer directions. This reference supports the terminology; use the linked guide for applicability and operative requirements.
Kosha.Services · Updated 2 October 2026