When registering a legal entity or branch in the business registrations, must notify their actual owner. If the beneficial owners of the parties already registered in the Companies Register have not been notified, they shall take the initiative to rectify this. In such cases, the deadline for providing the information is 1 March 2020.
In the event of changes to previously registered information on beneficial owners, must notify them to the Business Register within two weeks of the change.
. Registration of real owner
. Change of actual owner registration
. Questions and answers
In the case of new business registrations, information on the beneficial owners shall be notified using the form, and the form shall accompany the company’s founding documents for the company register. The legal entities already registered in the company register the owners by going to their service area.
All business associations established as of 30 August 2019 have submitted information on beneficial owners.
Companies subject to Registration are themselves responsible for obtaining information about their real owners. The Directorate of Internal Revenue’s Register of Companies cannot provide specialist advice in this regard. If there is any doubt as to who is the beneficial owner of a company subject to Registration, the advice of an external professional, such as a lawyer, a certified public accountant, or an auditing firm, should be sought.
Definitions of types of ownership
According to the Act on the business registrations of beneficial owners, the type of ownership must be specified when the beneficial owner is registered. Below are definitions of the types of ownership specified in point the Registration of beneficial owners no.
. Direct ownership of shares
. Indirect ownership of shares
. Direct another form of ownership
. Indirect other ownership
. Direct voting power
. Indirect voting
. Direct and indirect decision-making power
. Direct and indirect control
. Direct management
. Indirect management
. Nomination of directors
There are certain penalties for failing to provide information about the actual owners; information is incorrect or misleading, or data retention rules are violated. The following discussion reviews the sanctions applied in those circumstances.
. Daily fines
. Administrative fines
. Authorization for deregistration and dissolution of a party subject to Registration
. Deadline for legal action