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Duty to register beneficiary owners by the 1st January 2019

10/12/2018

By the end of the year, legal entities have the duty to enter their beneficiary owners in the newly established Data Register of Beneficiary Owners. The duty applies to all regular limited and joint stock companies having their owners entered in the Commercial Register and to other legal entities, for example also to trust funds. The Register is not publicly accessible and it serves for the needs of tax offices, police, the Czech National Bank, etc. The Register is expected, apart from “money laundering” prevention, to prevent conflicts of interest in the process of awarding public contracts. For entrepreneurs, the establishment of this Register represents further administrative burden. This duty was introduced based on the 4th EU AML Directive.


Legal entities entered in the Commercial Register are bound to register their beneficiary owners by 1st January 2019; other legal entities entered in other public registers, in particular associations, have to enter their beneficiary owners by 1st January 2021.


The new legislation includes no financial penalty, however, in the event of a failure to perform this duty, the court may dissolve the company and order its liquidation.


A small consolation is that motions to record filed by the end of 2018 are exempt from court fees, which shall be CZK 1000 per filing from January 2019.

If you are not registered, yet, we can assist you:


We will be happy to prepare a form for you, which can be simply sent via your data box. 
Please contact us by telephone at +420 224914050, or e-mail to info@holubova.cz.


 

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Duty to register beneficiary owners by the 1st January 2019

By the end of the year, legal entities have the duty to enter their beneficiary owners in the newly established Data Register of Beneficiary Owners. The duty applies to all regular limited and joint stock companies having their owners ...