What is a beneficial owner?

A beneficial owner is the real person who ultimately owns or controls a company, even if their name doesn't appear directly on official documents.

Who is considered a beneficial owner?

A person is considered a beneficial owner if they:

• Owns more than 25% of a company's shares

• Benefit from more than 25% of the company's capital

• Control more than 25% of the voting rights

Direct vs. indirect ownership

There are two ways someone can be a beneficial owner:

• Direct ownership: the person's name appears directly as a shareholder or director of the company.

• Indirect ownership: the person owns the company through one or more intermediary companies.

Example: imagine a company where one shareholder is another company owning 60% of it. That parent company is owned 40% by Person A and 60% by Person B. Even though neither A nor B appears directly in the verified company, Person B effectively owns 36% of it and must therefore be declared as a beneficial owner. Person A, who only owns 24%, does not meet the threshold.

Other cases

A person may also be considered a beneficial owner if they:

• Are a director or manager of the company

• Are the legal guardian of a minor shareholder

• Hold bearer shares, which can be transferred without leaving a public record