How will legal entities and their owners change in 2020

One of the measures taken in the course of combating legalization of ill-gotten proceeds is a law adopted in December which requires that legal entities comply with new rules – disclose information about end beneficiaries (individual who controls activities of the legal entity).

This requirement existed before but the rules have changed and been reinforced, and we should know how it will affect business.

The information must be submitted in the following cases:

• at registration of the legal entity;
• at changing information about end beneficiaries (within 30 working days);
• by already incorporated legal entities (within 3 months after the Cabinet of Ministers approves forms of ownership);
• should be confirmed annually (within 14 calendar days after the date of registration starting from the following year).

The following information about beneficiary should be disclosed:

• Full name;
• Date of birth;
• Country of citizenship;
• Series and number of passport;
• Place of residence;
• Tax payer number (if any);
• Nature and extent of beneficial ownership.

What documents should be submitted:

• Structure of ownership (as per the approved form);
• Extract or excerpt of legal entity member registration;
• Notarized and duly executed copy of beneficiary’s passport.

Verification of the data is carried by state registrar and using a wide list of Ukrainian registers.

Consequences of breach of the obligation:

• Refusal of legal entity registration or registration of changes in the legal entity.
• Fine up to UAH 51,000.

Legal Alliance Company will consult you on these matters and help to take needed actions to comply with the law. Please contact associated partner Natalia Lavrenova lavrenova@l-a.com.ua.