Estonia, Financial Services

International Internet Magazine. Baltic States news & analytics Thursday, 21.02.2019, 22:32

Estonia: Real beneficiaries of companies to be declared as of September

BC, Tallinn, 10.08.2018.Print version
The real beneficiaries of all companies registered in Estonia need to be declared in the commercial register as of Sept. 1.

In case of companies the real beneficiary is a physical person who owns the company either directly or indirectly. A direct ownership implies that a physical person owns at least 25% of a company or a right of ownership. An indirect ownership is when more than 25% of a company is owned by another company, which is under the control of a physical person.

The real beneficiary will not be declared for companies listed on the stock exchange, apartment associations, building associations and certain foundations. In all other cases the board of a legal person is obliged to declare the data of its real beneficiary in 60 days after the new requirements take effect on Sept. 1.

If the real beneficiary is not possible to be determined after all options for finding that out have been exhausted, the company has to declare a member of its highest governing body as the real beneficiary. Companies will also have document and preserve data regarding all procedures they carried out to identify the real beneficiary.

The law amendment proceeds from a money-laundering directive of the European Union.

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