Netherlands
Netherlands’ Ultimate Beneficial Owners register effective from January 2020
The Netherlands will introduce the requirement of Ultimate Beneficial Owners (“UBO”) register beginning January 2020, subject to the legislative process in the Dutch parliament. A UBO is:
- A person holding 25% or more of the shares in a BV or NV, directly or indirectly;
- A person having 25% or more ownership interest of a partnership, directly or indirectly;
- A person capable of exercising more than 25% of the votes in a decision to amend the articles of association of a foundation, directly or indirectly;
- A person effectively controlling a company or entity.
Each newly incorporated entity is required to obtain information on the persons who are ultimately beneficial owners. The Dutch UBO register will be part of the Dutch Trade Register and upon the register being in place, existing entities will have 18 months to register the details. A branch is exempt from the UBO obligation. The details of a UBO will be publicly available.
UBO details available publicly will include:
- Full name
- Month and year of birth
- Nationality
- Country of residence
- Nature and extent of the UBOs economic interest
Furthermore, the Dutch government will have access to the following information:
- Date, place and country of birth
- Citizen service number or foreign tax identification number
- Passport copy
- Residential address
- Documents stating the nature and extent of the UBO’s economic interest
Implication
Every company incorporated in the Netherlands may be required to identify the Ultimate Beneficial Owners in the company for the purpose of reporting, if the act comes into effect in 2020.
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