With Docoon Invoice, businesses, software publishers, and finance departments can securely transition to electronic invoicing by integrating reliable business identity verification right from the onboarding stage. The benefits are immediate: reducing the risk of fraud, ensuring the reliability of invoice flows, and relying on a chain of trust that complies with the reform’s requirements.
Invoicing requires a clear understanding of who issues invoices, who receives them, and who acts on behalf of the company. This is the essence of KYB, or Know Your Business, which has become a new prerequisite for trust in B2B transactions.
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KYB: Identity Verification for Businesses
What is KYB?
Key takeaways
KYB, or Know Your Business, refers to the process of verifying a company’s legal existence, official credentials, status, representatives, and authority to act. In the context of electronic invoicing, it allows an accredited platform to ensure that a company is properly identified before processing its invoices.
This verification serves a very practical purpose. An Approved Platform (AP) must be able to link each invoice to a specific business. It must also ensure the reliability of the information used to issue, receive, route, and track electronic invoices.
In other words, KYB answers a simple question: Is the company joining the network really who it claims to be?
KYC or KYB: What's the difference?
The two concepts are similar, but they do not cover the same scope.
KYC, or Know Your Customer, is primarily intended to identify a natural person. It is used, for example, to verify the identity of an executive, a legal representative, or an authorized signatory. KYB, on the other hand, pertains to a legal entity. It therefore focuses on the company: its corporate name, its SIREN number, its SIRET number, its business activity, its legal status, and its representatives.
KYC/KYB: The Difference in a Nutshell
KYC verifies an individual. KYB verifies a business. In B2B electronic invoicing, KYB is central, but it can be supplemented by KYC to verify a legal representative or an authorized signatory.
Why isn't the SIREN/SIRET number always enough?
The SIREN and SIRET numbers are essential identifiers. They are used to identify a business and its locations. The reform also requires that electronic invoices include structured data, including the SIREN numbers of both the supplier and the customer.
But KYB logic doesn’t stop at the presence of an identifier. It verifies the consistency of the information. Is the company still in business? Does the SIRET number correspond to the correct entity? Does the person opening the account have the authority to do so? Does the information provided match the official records?
Without this verification, a company may process a data stream containing incomplete, outdated, or inconsistent data. And in a system where invoices are processed automatically, a data entry error can quickly trigger a chain reaction.
Why KYB Is Becoming a Prerequisite for Trust Under the Reform
The Authorized Platform (AP) becomes a trusted third party
The reform is transforming the role of platforms. The tax authority states that an approved platform must issue, transmit, and receive electronic invoices; extract the data needed by the tax authority; and then receive and transmit transaction and payment data.
This position places the platform at the heart of the exchange. It does more than simply transmit a document; it helps build a trusted network among businesses, industry-specific software, government agencies, partner platforms, and billing systems.
In this context, onboarding cannot remain a mere formality. It becomes a checkpoint. Before processing an invoice, the platform must know which company it serves, how to identify it, and how to link the actions taken to a legitimate entity. In practice, this verification relies on several checkpoints:
KYB Checklist for Electronic Invoicing
A KYB audit of electronic invoicing may include:
- SIREN verification;
- verification of the SIRET number;
- verification of the company name;
- the company's active status;
- the address of the establishment;
- the identity of the legal representative;
- a person’s authority to act on behalf of the company;
- the preservation of evidence.
A response to the risks of fraud and identity theft
Invoice fraud often stems from a simple oversight: misidentification of the issuer, recipient, or contact person. A company may receive a fraudulent invoice. A third party may attempt to impersonate someone. An account may be opened using incomplete information.
KYB mitigates these risks by conducting verification upfront. It requires that key information be verified before a company is added to the billing network.
Of course, this check does not eliminate all risks. But it does serve as a first line of defense. It prevents just anyone from entering a process that involves cash flow, VAT, payments, and reporting requirements.
A challenge for publishers, system integrators, and finance departments
KYB isn't just about the platform. It's also of interest to software developers, system integrators, CFOs, and CIOs.
✔️For a publisher, it is essential to provide customers with a seamless yet compliant onboarding experience. Verification should not hinder usage; rather, it should be seamlessly integrated into the customer journey.
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✔️For a Finance & Accounting Department (F&A), KYB secures incoming and outgoing cash flows. It reduces addressing errors, disputes, and risks associated with incorrect reference data.
✔️For an IT department, it provides a framework for governance. Identity data, access rights, audit trails, and evidence must form a coherent whole.
The reform therefore requires a shift in perspective. Electronic invoicing is no longer just an accounting issue; it has become a matter of digital trust.
Docoon Invoice: Integrating KYB into a comprehensive trust chain
From Identification to Evidence
A good KYB is only valuable if it is part of a broader process. Verifying the company is the first step. Next, you must ensure the authenticity of the documents, track actions, date transactions, and retain evidence.
This is where the combination of Docoon Invoice and Docoon.sign—Docoon’s eIDAS-certified qualified electronic signature solution—really comes into its own. Docoon.sign is part of the Docoon ecosystem, which focuses on electronic invoicing, EDI, and digital trust services. Docoon.sign is automatically integrated into its Authorized Platform to manage invoices as part of the electronic invoicing reform.
👉On this topic, read: eIDAS 2.0 is coming: upgrade your digital signatures now!
This integration eliminates the need to use multiple tools. It allows for the integration of identification, signing, electronic seals, time-stamping, and archiving into a single workflow.
The electronic stamp, useful for mass-produced documents
An electronic signature is often associated with an identified individual. An electronic seal, on the other hand, allows a company to certify a document on its own behalf.
This approach is particularly valuable in invoicing workflows. A company may issue large volumes of invoices, statements, or certificates. It needs a solution that verifies the document’s origin without requiring a manual step for each transaction.
Docoon.sign allows you to apply an electronic stamp on behalf of the company. This stamp enhances the authenticity and traceability of document workflows, while integrating seamlessly into automated processes via API, SaaS portal, or Windows automation software. For a company, this changes the game. It no longer secures just a single document; it secures an entire document workflow.
Qualified time-stamping and legally valid archiving: evidence you can rely on
Trust doesn’t end when the invoice is sent. It must remain verifiable over time. Who did what? On what date? On which document? With what level of integrity? These questions may arise during an audit, a dispute, an inspection, or a business disagreement.
Docoon.sign adds a qualified time stamp and legally valid electronic archiving. The solution thus enables the creation of a complete chain of evidence: identity, date and time, file integrity, and action history. In the context of electronic invoicing, this approach significantly enhances the value of KYB. We don’t just verify the company
With Docoon Invoice and the integration of Docoon.sign, electronic invoicing is part of a comprehensive chain of trust: company identification, electronic signature or stamp, qualified time stamp, legally valid archiving, and the creation of an audit trail.
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Comparison Chart: Traditional Approach vs. Docoon Approach
Issue | Limited approach | PA Docoon Invoice Approach |
Company Information | Basic verification of reported information | A framework of trust surrounding the company, its credentials, and its representatives |
Onboarding | A process that is often separate from the billing workflow | Integration with the Docoon Invoice ecosystem |
Electronic signature | A separate module, sometimes disconnected from business workflows | Docoon.sign integrated into the Docoon Authorized Platform |
Electronic stamp | This feature is sometimes missing or optional | Company stamp for mass-produced documents |
Traceability | History scattered across multiple tools | Tracking actions within a consistent document chain |
Timestamp | Availability varies depending on the solution | Qualified timestamping integrated into workflows |
Archiving | Archiving is sometimes outsourced or optional | Legally valid electronic archiving (10 years) and evidence file |
Business benefit | Minimum technical compliance | Compliance, evidence, efficiency, and risk mitigation |
5 Key Takeaways
- KYB is becoming a trusted pillar in electronic invoicing, as it verifies a company’s identity before integrating it into the workflow.
- KYC and KYB complement each other: KYB verifies the legal entity, while KYC verifies the legal representative or signatory.
- The SIREN and SIRET numbers remain essential, but a true KYB process also verifies consistency, legitimacy, and authority to act.
- The electronic invoicing reform strengthens the role of certified platforms as trusted third parties in B2B transactions.
- With Docoon Invoice and Docoon.sign, Docoon integrates electronic invoicing, digital signatures, electronic seals, qualified time stamps, and legally compliant archiving into a comprehensive chain of trust.
FAQ: KYC/KYB and Electronic Invoicing
1/What is KYB in electronic invoicing?
KYB, or Know Your Business, refers to the process of verifying a company’s identity. In electronic invoicing, it allows for the verification of a company’s legal existence, official identifiers, status, and ability to participate in a compliant workflow.
2/What is the difference between KYC and KYB?
KYC verifies the identity of an individual. KYB verifies the identity of a business. In B2B electronic invoicing, KYB plays the primary role, but KYC can supplement the process when the platform needs to verify a legal representative or an authorized signatory.
3/ Why is the KYB becoming important with the reform?
The reform requires structured exchanges through approved platforms. These platforms must ensure the reliability of the entities integrated into the network. KYB therefore helps secure the onboarding process, prevent identification errors, and reduce the risk of fraud.
4/ Is the SIREN number sufficient to verify a business?
No. The SIREN number is essential information, but it is not always sufficient. A KYB check also verifies the consistency of the information, the company’s status, its location, its representatives, and the authority of the person acting on its behalf.
5/What is the role of the legal representative?
The legal representative acts on behalf of the company. In certain cases, the platform must therefore verify that the person taking action has the necessary authority. This is where KYC can complement KYB.
6/ What is the purpose of an electronic signature on an invoice?
An electronic seal allows a company to certify a document on its behalf. It is particularly well-suited for high-volume documents, such as invoices, statements, or certificates. It enhances the authenticity and traceability of document flows.
7/Why is a qualified time stamp useful?
A qualified time stamp allows a reliable date and time to be associated with an action or a document. It helps create admissible evidence in the event of an audit, dispute, or inspection.
8/How does Docoon Invoice address KYC/KYB challenges?
Docoon Invoice is part of a comprehensive chain of trust. With the integration of Docoon.sign, the platform combines electronic invoicing, digital signatures, electronic stamps, qualified time-stamping, legally compliant archiving, and audit trails. This enables businesses to improve compliance, traceability, and operational security.
⏩With Docoon Invoice, you can rely on a Certified Platform designed to secure your electronic invoicing workflows—from KYB/KYC onboarding to legally compliant archiving—by integrating Docoon.sign’s trusted services: digital signatures, electronic stamps, qualified time stamps, and audit trails.
Would you like to know how to prepare your organization, your customers, or your users for these new requirements? Contact the experts at Docoon
