The requirement to submit a passport and proof of address during company formation serves several purposes:

1. Identification: Submitting a passport helps establish the identity of the individuals involved in the company formation process. It ensures that the company is being formed by legitimate individuals and helps prevent identity theft or fraudulent activities.

2. Know Your Customer (KYC) Regulations: Many countries have implemented KYC regulations to combat money laundering, terrorist financing, and other financial crimes. By submitting a passport, the authorities can verify the identity of the individuals involved and comply with these regulations.

3. Anti-Money Laundering (AML) Compliance: AML regulations require companies to implement measures to prevent money laundering and illicit financial activities. Verifying the identity of individuals through passport submission helps in meeting these compliance requirements.

4. Proof of Address: The proof of address requirement is to establish the residential address of the individuals involved. It helps authorities ensure accurate documentation and enables communication with the company and its directors or shareholders.

5. Legal and Tax Purposes: Passport and proof of address are essential for legal and tax purposes. They help determine the tax residency of individuals, establish jurisdictional requirements, and facilitate communication with relevant authorities.

6. Personal Liability and Accountability: By requiring personal identification documents, it holds individuals accountable for their roles and responsibilities within the company. This helps in cases where legal action or liability arises.

7. International Standards and Cooperation: Submitting identification documents is aligned with international standards and facilitates cooperation between countries in terms of information sharing, legal proceedings, and regulatory oversight.

It's important to note that the specific requirements for passport and proof of address may vary from country to country. It's advisable to consult the regulations and guidelines provided by the relevant government or registration authorities in the country where you plan to form a company.