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Czech Republic - Register of Beneficial Owners (Phase 2)

  • United Kingdom
  • Corporate secretarial services

18-01-2018

The second phase of registering beneficial ownership in the Czech Republic was implemented on 1 January 2018. In order for entities to comply with these new duties, the company must register information on its beneficial owners, including the reasons why a particular person is considered beneficial owner.

This information will be captured in the special Register of Beneficial Owners. The record will not be made public and will only be available to legally stated persons/state bodies. Companies have until 1 January 2019 to register this information.

 

Who is a beneficial owner?

Under the AML Act, the beneficial owner of a legal entity is considered a 'natural person having factual or legal ability to directly or indirectly exercise a decisive influence on the legal entity.'

A beneficial owner is a natural person who meets the following criteria:

1) A person who holds more than 25% of the voting rights in the company or holds more than 25% share in its registered capital;

2) A person who controls a person fitting the description of point 1;

3) Is a beneficiary of at least 25% of the company's income; or

4) Is a member of the statutory body, the representative of the legal entity in this body or in a position similar to the one of the member of the statutory body in cases where there is no beneficial owner or it is not possible to determine the beneficial ornwe based on points 1 - 3.

 

All companies registered in the Commercial Register are obliged to register beneficial owner(s), including companies or subsidiaries with an ultimate parent company whose shares are listed e.g. on the NYSE/LSE.

If it is not possible to identify a particular natural person using the above criteria, or, if the person designated is not the actual owner in the sense of the above definition, then a member of the statutory body of a legal entity shall be registered as the actual beneficial owner. 

The above requirements do not apply to branches.

 

In order to adhere to these new regulations, our team in the Czech Republic are able to assist with the registration by way of Power of Attorney. If you require any further information about how the register will affect your company, please contact Calypso Ranshaw (calypsoranshaw@eversheds-sutherland.com) for more information.