14.05.2019. The Netherlands to launch a beneficiaries’ registry for companies in next year

Company News

Because of the AML 4 protocol, which aims to combat money laundering in the European Union, the Parliament of the Netherlands continues to actively explore the beneficiaries of companies that are registered in the Kingdom.
Under the new rules according to the draft law of the Kingdom of the Netherlands, under the condition of mandatory registration are included:
• Private limited companies (Besloten Vennootschap, or BV);
• Public companies (Naamloze Vennootschap, or NV);
• Cooperatives (Cooperatie) and mutual insurance associations (Onderlinge Waarborgmaatschappij);
• Private funds (Stichting);
• Business associations (Vereniging);
• All types of partnerships – full partnerships (VOF), limited partnerships (CV) and professional partnerships (Maatschap).
The requirement to provide information on beneficiaries will apply to all types of legal entities registered in the Netherlands, regardless of where they operate. Under the terms of the Dutch law, a person will be considered to be the beneficial owner of a legal entity, if he/she:
• Owns more than 25% of the shares of a private limited company;
• Owns more than 25% of shares in the capital of the partnership;
• Uses more than 25% of votes when deciding to amend the internal charter of a private foundation;
• Controls business transactions of a legal entity.
It is expected that the updated rules will come into force in January 2020. Starting from this date, all legal entities will be required to disclose information on beneficial owners during state registration. Those legal entities that have already registered before 2019 are planning to enter an 18-month transition period during which they will have to provide requested information.