New Measures | Beneficial Owner Filing System in China (2)
In the previous article, you can learn about the basic concept of a beneficial owner and the background of the implementation of the BOI filing measures. In this sharing, let’s find out more key points through our observations.
- What information about the UBO needs to be filed?
The filing company should submit the following information:
- Name
- Gender
- Nationality
- Date of birth
- Address of habitual residence or workplace
- Contact details
- Type, number, and period of validity of the identity certificate or other identity documents, and
- Type of the beneficial ownership relationship, date of formation, and termination (if any).
Some further information may be required depending on the specific situation of the UBO, such as:
- the ratio of equity, shares, or partnership interests held by the beneficiary owner
- the ratio of income rights or voting rights; or
- the method of actual control.
- Timing
The BOI filing measures will take effect from 1 November 2024.
For new entities established after November 1, 2024, they must file beneficial owner information through the relevant registration system during establishment registration.
For existing entities that have completed registration before the effectiveness of the BOI filing measures, i.e., before 1 November 2024, they will be given a one-year grace period. They must file the beneficial owner information before 1 November 2025.
To simplify the filing process for MSMEs, the Measures mention the simplified method of “exemption by commitments”, whereby eligible MSMEs are exempted from further filing of beneficial owner information by reading the commitment letter and ticking the box to confirm it in the system.
- Modification
If there’s any change to beneficial owner information or if the entity no longer qualifies for exemption, the updated information must be filed within 30 days through the relevant filing system.
- Information protection
Some of the companies may be concerned about whether the beneficial owner information filed will be open to the public.
The answer is: NO.
In consideration of the security and privacy of beneficial ownership information, the recorded data will not be publicly disclosed but will be accessible only to government departments and anti-money laundering obligated institutions for fulfilling their legal duties.
The relevant state agencies, financial institutions, and specific non-financial institutions are required to keep the confidentiality of lawfully obtained beneficial owner information.
If you have more questions, please feel free to contact us.
References:
People’s Bank of China
http://www.pbc.gov.cn/english/
State Administration for Market Regulation (SAMR)
https://sjfg.samr.gov.cn/law/pageInfo/main.main
Administrative Measures for Beneficial Owner Information
http://www.pbc.gov.cn/tiaofasi/144941/144957/5342579/index.html
Document Number: Order No. 3 [2024] of the People’s Bank of China and the State Administration for Market Regulation
