Registration of beneficial owners – the deadline is approaching
17 November 2017
Most Danish companies are obligated to register their beneficial owner(s) with the Danish Business Authority no later than 1 December 2017.
As most of you probably already know, most Danish companies are obligated to register information regarding their beneficial owner(s) with the Danish Business Authority no later than 1 December 2017.
A beneficial owner shall be understood as the physical person(s), who, directly or indirectly, ultimately holds more than 25% of the shares and/or voting rights in a company, or controls a company by other means, e.g. through a shareholders agreement or by having the authority to appoint members of management. As a result, the company must always assess, who shall be registered as the company’s beneficial owner(s).
If the beneficial owner(s) cannot be identified, or if a company does not have any beneficial owners, as no person holds or controls more than 25% of the share capital or voting rights, the company’s registered members of management must be registered as beneficial owners.
Publicly listed companies are not subject to the registration of beneficial owners. However, companies that are ultimately 100% owned by publicly listed companies are subject to the registration and must therefore register the members of management in the Danish subsidiary. If the company is not ultimately wholly owned by a publicly listed company, the company must register information regarding the beneficial owner(s) for the part not owned by the publicly listed company.
The company’s management is responsible for completing the registration, and the registration deadline is 1 December 2017. The company must keep documentation of the registered information for a period of 5 years and furthermore, the company has a duty to, continuously, maintain the registered information and update such, as soon as possible after a beneficial owner has become known to the company. If the company fails to comply with these obligations, the company’s members of management can be sanctioned by a fine.
The following Danish company types are amongst others obligated to register beneficial owners:
- Public and private limited companies
- Limited partnership companies
- Co-operatives (co-operative societies) and other companies and societies with limited liability
If you have any questions to the above, please contact
Partner Henrik Kany, Law, tel: +45 2529 3310
The above does not constitute legal counselling and EY does not warrant the accuracy of the information. With the above text, EY has not assumed responsibility of any kind as a consequence of any reader’s use of the above as a basis for decisions or considerations.