Czech Republic implements UBO regulation

19 April 2021 - As of 1 June 2021, new legislation regarding the registration of beneficial owners (Act No. 37/2021 Coll., on Registration of Beneficial Owners) becomes effective.

Key points:

  • Definition of UBO is expanded to any natural person holding directly or indirectly more than 25 % of voting shares, or any person with ultimate influence over a legal entity/management of trust fund, or the person in senior management;
  • The due date to ensure that the registered data complies with the requirements is 1 June 2022 and 1 December 2021 for non-business corporations and business corporations respectively;
  • Such details as name, state of residence, year and month of birth, citizenship, information on the nature of the beneficial owner’s position, size of his/her share, date of becoming and ceasing to be a beneficial owner, will be publicly available;

Non-compliance might result into severe penalties, such as payment of the state charge (approx. 19,200 EUR), ban on exercise of voting rights, ban on payment of a share in a property benefit and unenforceability of rights and obligations for the beneficial owner.

Citco Insights article 

 

Are you interested in more Citco Insights articles?

 FOLLOW US ON TWITTER @CITCOINSIGHTS

Our contacts

Kariem Abdellatif

Kariem Abdellatif

Head of Citco Global Subsidiary Governance Services

T+352 47 23 23 265
Ekabdellatif@citco.com
LLuxembourg

Robert-Jan Kokshoorn

Robert-Jan Kokshoorn

Head of Business Development,
Citco Global Subsidiary Governance Services

T+1 305 577 1116
Erkokshoorn@citco.com

Chris Butler

Chris Butler

Head of Client Services,
Citco Global Subsidiary Governance Services

T+370 5 204 7300
Echbutler@citco.com
LVilnius