> ## Documentation Index
> Fetch the complete documentation index at: https://developer.tazapay.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Onboarding

> KYC requirements, Approval timelines, and Reliance model

Before you can create a collection account for a customer, that customer must be onboarded as an [Entity](api-reference/tazapay-api/entity) and pass KYC. This page covers what's required, how long approval takes, and how the reliance model lets you provision collection accounts instantly.

***

## Full KYC is mandatory

Full KYC is mandatory for every entity, both individuals and businesses, before a collection account can be created on their behalf. This keeps incoming funds compliant, traceable, and correctly attributed.

### Related Links

* [Onboarding requirements for businesses](managed-payments/onboarding-requirements/onboarding-requirements-businesses)
* [Onboarding requirements for individuals](managed-payments/onboarding-requirements/onboarding-requirements-individuals)

***

## The standard flow

In the standard flow, an entity must be **approved** before you can create a collection account for it. After you submit an entity for KYC, Tazapay reviews it. This typically takes a few hours.

<img src="https://mintcdn.com/tazapay-58ae360f/w2VqPk8_KxGd0KGZ/images/collection_accounts_obo_or_1.jpg?fit=max&auto=format&n=w2VqPk8_KxGd0KGZ&q=85&s=f7839815d7996224ccfae392a157ea80" width="4040" height="1520" data-path="images/collection_accounts_obo_or_1.jpg" />

***

## The simplified model

If you're approved for the simplified model, you can create a collection account for an entity as soon as it is in **submitted** status, without waiting for Tazapay's approval.

<img src="https://mintcdn.com/tazapay-58ae360f/w2VqPk8_KxGd0KGZ/images/collection_accounts_obo_or_2.jpg?fit=max&auto=format&n=w2VqPk8_KxGd0KGZ&q=85&s=8e817dca00a66df358ae6b6d44b750e7" width="4040" height="1520" data-path="images/collection_accounts_obo_or_2.jpg" />

<Info>
  The simplified model is enabled after review. You will still have to submit the entire KYC pack of your customer. Contact your Tazapay representative to find out whether you qualify.
</Info>

***

## Standard vs. simplified

|                                                     | Standard flow                 | Simplified model                                    |
| --------------------------------------------------- | ----------------------------- | --------------------------------------------------- |
| Entity status needed to create a collection account | approved                      | submitted                                           |
| When Tazapay reviews                                | In the flow (before approval) | After the collection account creation (post-review) |
| Time to first collection                            | After review (\~ a few hours) | Instant                                             |
| Availability                                        | Default for all platforms     | On approval only                                    |

***

## Entity lifecycle

Both models share the same [entity object](/api-reference/tazapay-api/entity). The only difference is the status at which a collection account can be created.

<Steps>
  <Step title="Create the entity">
    Create an Individual or Business entity for your customer via the [Create Entity API](/api-reference/tazapay-api/create-entity).
  </Step>

  <Step title="Submit for KYC">
    Provide the required information and submit the entity via the [Submit Entity API](/api-reference/tazapay-api/submit-entity-business). The entity moves to **submitted**.
  </Step>

  <Step title="Reach a usable status">
    **Standard:** wait for approved.
    **Simplified:** proceed at submitted.
  </Step>

  <Step title="Create the collection account">
    Issue a [virtual account](/collection-accounts/coverage/virtual-accounts) or [stablecoin wallet](/collection-accounts/coverage/stablecoins) for the entity.
  </Step>
</Steps>