The short answer
Cosmos asks for identity documents, proof of address and information about your business because the law requires it to. Cosmos is a corporate service provider, and providers of corporate services are required to know who their clients are before they act for them. These are called know-your-customer checks, usually shortened to KYC. They are not a Cosmos preference, and they are not optional. Every reputable provider, in every jurisdiction Cosmos works in, has to carry them out.
What know-your-customer checks are
A know-your-customer check is the process of confirming who a client really is, understanding the business they intend to carry on, and forming a view of the risk involved, before any work begins. It exists because companies can be misused, to launder money, to evade sanctions, to finance crime, and the checks are how the system makes that harder. By confirming the real people behind every company, the checks protect the integrity of the whole system, and of the clients who use it honestly.
The law behind it
Anti-money-laundering and counter-terrorist-financing law places direct obligations on corporate service providers. Those obligations include identifying and verifying every client and every beneficial owner, understanding the purpose of the business, screening clients against sanctions and other lists, and keeping records of all of it. A provider that does not do this is breaking the law. So when Cosmos asks for a document, it is meeting an obligation it cannot waive, however straightforward your case may be.
What Cosmos checks, and why
Identity. A passport copy confirms who each owner and director actually is. Verifying identity is the foundation of every other check.
Address. A recent proof of address confirms where each person lives. It also helps establish which laws and tax rules may be relevant.
The business. A description of what the company will do allows Cosmos, and the regulator, to understand the business and to see that it is legitimate and properly licensed.
Source of funds. For some engagements, Cosmos needs to understand where the money behind the company comes from. This is a standard part of the checks, not a sign of suspicion.
Screening. Cosmos screens clients against sanctions lists, lists of politically exposed persons, and adverse media. This is routine, and it applies to everyone.
Beneficial owners: following ownership to the top
The checks do not stop at whoever signs up. Cosmos has to identify the ultimate beneficial owners, meaning the real human beings who ultimately own or control the company, even where ownership runs through other companies or trusts. This is why, if a company owns part of your company, Cosmos asks about the people behind that company too. The aim is simple: no company should have owners who are hidden from view.
Politically exposed persons
Some clients hold, or have held, a prominent public position, or are close to someone who does. Such a person is called a politically exposed person, or PEP. Being a PEP is not a problem and does not prevent you from setting up a company. It simply means the law requires some additional checks. If this applies to you, Cosmos will explain what is needed and handle it without fuss.
The checks continue after formation
Know-your-customer is not only a one-off at the start. Providers are required to keep their understanding of a client current, which is called ongoing monitoring. From time to time, Cosmos may ask you to refresh a document or confirm that your details are unchanged. This is normal and expected, and it is quick to deal with when nothing has changed.
It protects you too
It is easy to see these checks as friction. They are also a protection. Proper checks keep your company in good standing with banks and regulators, make banking and investment smoother because the groundwork is already done, and keep you from being drawn, unknowingly, into a structure alongside someone whose involvement would damage you. A provider that did not carry out checks would not be a lighter-touch provider. It would be a riskier one.
What Cosmos does with the information
The information you provide for these checks is treated as confidential and held securely. It is used for the checks and the engagement, and not for unrelated purposes. How Cosmos protects your information explains this in full. For the full list of what to prepare, see Documents we need from you.