UBO registration is hot these days. UBO stands for Ultimate Beneficial Owner. This only applies if you hold more than 5% of the shares in a company.
UBO registration – hot
The Dutch Government would like to know who is actually running the business, collecting the proceeds. For this purpose in 2021 a new obligation was introduced. The UBO registrar with the Chamber of Commerce. All shareholders private persons participating for more than 5% in a company, need to register themselves.
UBO registration – small challenge
We are often asked if we can assist the shareholder with this procedure. It is a rather Dutch procedure and our clients often cannot understand that. Unfortunately we cannot assist.
The reason we cannot assist is that the client needs to process specific actions, we cannot help with. The completing of the name and address details is easy. But then EUR 0,01 needs to be paid from your personal bank account to the Chamber of Commerce to proof you are indeed the concerning person.
Then a digital ID process using your mobile phone is required as second step. After that has been successfully completed, you receive a confirmation. And your UBO details are in the public registrar of the Chamber of Commerce.
Private organizations and UBO request
You as shareholder of a company, may have come across multiple requests for UBO details. To us, it seems companies are not aware of the existence of the Chamber of Commerce UBO registrar. Or, companies are not willing to pay for this information to the Chamber of Commerce.
The result is that you need to go through endless forms, that are in basics identical to what you already provide to the Chamber of Commerce.
If you then mention to the person that you are already registered as UBO with the registrar of the Netherlands, the answer is often that their boss (actually used word) demands them to have you complete this. Otherwise their service is to be terminated. Silly world we live in.
Tax is Exciting
We think tax is exciting. Not exciting at all are the formalities of the UBO registration. The reasons why this UBO registration is obligatory is not very clear to us. An anti-money laundering procedure, but what does such registration make for a difference?