Bill to introduce the UBO-register adopted by the Lower House of Parliament.
On 10 December last, the Lower House of Parliament approved the bill for the introduction of the UBO-register (the bill entitled "Implementation Act for Registration of ultimate stakeholders of companies and other legal entities"). However, entry into force of the Act can only take place after approval of the bill by the Senate, where it is currently still being debated. The originally planned entry into force at the beginning of January 2020 will therefore not be achieved. The UBO-register is expected to be introduced in the spring of 2020.
UBO stands for Ultimate Beneficial Owner. The bill defines UBO as "the natural person who ultimately owns or controls a company or other legal entity".
Pursuant to the law, UBOs must be registered in the UBO register. From the date of entry into force, the entities subject to the registration obligation will have 18 months to comply with the UBO registration obligation.
The UBO registration obligation will apply to the following entities and companies:
(non-listed) BVs and NVs;
- partnerships, general partnerships and limited partnerships;
- foundations, associations, mutual societies and cooperatives;
- European public limited companies;
- European Cooperative Societies;
- European Economic Interest Groupings; and
- shipping companies.
The following entities and enterprises will be exempt from the UBO registration requirement:
- listed companies and their Dutch subsidiaries insofar as they are held 100% directly or indirectly
- one-man business;
- legal persons governed by public law;
- associations without full legal capacity which do not conduct a business;
- owners’ associations; and
- some historical legal entities (e.g. guilds).
We would also like to refer you to our earlier news report of 24 April 2019 regarding the introduction of the UBO-register.
We will keep you informed of the developments surrounding the bill.