Legislative proposal adopted for mandatory UBO-registration in the Netherlands
The legislative proposal ‘Implementation act for the registration of the ultimate beneficial owner of companies and other legal entities’ (also referred to as the Dutch “UBO-register”) has been approved by the Dutch Senate on 23 June 2020. As a result, the law will now soon enter into force and that is roughly six months later than initially planned. Do you want to know more about the UBO register? Please read our previous blog on this topic.
As soon as the law enters into force, all existing companies and legal entities in the Netherlands will have 18 months to register their Ultimate Beneficial Owners (“UBO”) with the Dutch Chamber of Commerce. Assuming that the law will enter into force this month still (June 2020), the term for the registration of the beneficial owner expires in December 2021. All existing legal entities in the Netherlands that are subject to the mandatory registration will be contacted by the Chamber of Commerce within the next 18 months with a request for the registration of their UBO(s).
Newly incorporated Dutch entities will be required to provide the relevant UBO information together with their application for registration in the Trade Register of the Chamber of Commerce. The UBO registration is a prerequisite for being provided with a Chamber of Commerce registration number.
We expect that Dutch banks and other financial institutions will soon demand that their customers meet the UBO registration obligation.