Companies required to keep records of beneficiaries
Posted: Sun Jan 19, 2025 4:09 am
This must be done by legal entities that are:
to state or municipal structures;
international organizations;
issuers of shares within the framework of organized trading (upon disclosure of information on securities in accordance with the established procedure);
foreign issuers of shares in job seekers data package the context of trading on a foreign exchange (if the exchange is included in the list determined by the Bank of the Russian Federation);
foreign entities engaged in legal relations that do not have the status of a legal entity and do not provide for the presence of beneficiaries or the position of general director.
Organizations are required to know the beneficiaries of their funds and to take steps to obtain information about them, as specified in subparagraph 1 of paragraph 1 of Article 7 of Federal Law No. 115. They must also update this data annually and store it for at least five years.
Documents for recording beneficiaries
Source: shutterstock.com
Also, in accordance with the procedure established by law, namely paragraph 7 of Article 6.1 of Federal Law No. 115, information about the company's beneficiaries may be disclosed in its reporting. This procedure is defined in several official documents. In particular, information about such persons is disclosed in the notes to the balance sheet and the financial performance report.
Frequently asked questions about beneficiaries
Any organization that is engaged in commercial activities and receives profit must have a beneficiary. He does not have to disclose his identity to the general public, but he is obliged to provide information about himself to state bodies every year. This is explained by compliance with the law on corruption.
The beneficial owner may be absent only if the organization is non-profit in nature or is engaged in charity.
Can the beneficiary be absent?
Yes. In companies that conduct non-profit activities, there may be no beneficiary. According to current legislation, such persons do not have the right to organize a business and derive benefits.
The main tasks of such companies are the organization of cultural events, the creation of unions and associations, holding city meetings, etc. The sphere of charity is also characterized by the absence of beneficiaries.
At the same time, non-profit organizations always have money on their balance sheets, which is profit. But all these funds do not go into the hands of the owner, but to the further development of the company.
Financial institutions cannot operate without a beneficiary, since they involve the circulation of funds.
Are there any differences and similarities between a beneficiary and a beneficial owner?
The only similarity between them is that they profit from owning their own property.
Is it necessary for the beneficial owner to be the founder of the company?
No. If the founder of the company owns less than 25% of the authorized capital, he will not be a beneficial owner. If in the future the founder buys additional shares or makes a contribution to the authorized capital with the consent of the other active founders, then, accordingly, his status may change.
Any founder can act as a beneficiary, since he will own some share of the authorized capital.
Beneficiary – founder or CEO?
It does not matter what status a person has in a business - director, founder or co-owner. What is important is whether the person meets the requirements for establishing the status of a beneficial owner, which are set out in Art. 3 of Federal Law No. 115. In fact, he can be an owner without a legally secured share in the business and at the same time hold the position of CEO. In another case, he can make key decisions on the management of the company, but its director will be a completely different person.
In any case, the beneficial owner is either the sole founder of the company or one of several. But it may also be that he will be the person who subsequently acquires the necessary share in the authorized capital.
Are beneficiary and beneficial owner the same thing?
Not every beneficiary can be considered a beneficial owner. For example, a beneficiary may be a person insured under a life insurance policy, or it may be an ordinary recipient of a payment. Beneficial owner is a term used only in relation to organizations.
Beneficiary is a comprehensive concept that covers any beneficiary. Including a person who is actually the owner of a business and has significant influence on decision-making and profit distribution. He can own his share either directly or through intermediary firms and third parties.
Author of the article
Dmitry Svistunov
Dmitry Svistunov
Head of SEO and Development
Latest articles by this
to state or municipal structures;
international organizations;
issuers of shares within the framework of organized trading (upon disclosure of information on securities in accordance with the established procedure);
foreign issuers of shares in job seekers data package the context of trading on a foreign exchange (if the exchange is included in the list determined by the Bank of the Russian Federation);
foreign entities engaged in legal relations that do not have the status of a legal entity and do not provide for the presence of beneficiaries or the position of general director.
Organizations are required to know the beneficiaries of their funds and to take steps to obtain information about them, as specified in subparagraph 1 of paragraph 1 of Article 7 of Federal Law No. 115. They must also update this data annually and store it for at least five years.
Documents for recording beneficiaries
Source: shutterstock.com
Also, in accordance with the procedure established by law, namely paragraph 7 of Article 6.1 of Federal Law No. 115, information about the company's beneficiaries may be disclosed in its reporting. This procedure is defined in several official documents. In particular, information about such persons is disclosed in the notes to the balance sheet and the financial performance report.
Frequently asked questions about beneficiaries
Any organization that is engaged in commercial activities and receives profit must have a beneficiary. He does not have to disclose his identity to the general public, but he is obliged to provide information about himself to state bodies every year. This is explained by compliance with the law on corruption.
The beneficial owner may be absent only if the organization is non-profit in nature or is engaged in charity.
Can the beneficiary be absent?
Yes. In companies that conduct non-profit activities, there may be no beneficiary. According to current legislation, such persons do not have the right to organize a business and derive benefits.
The main tasks of such companies are the organization of cultural events, the creation of unions and associations, holding city meetings, etc. The sphere of charity is also characterized by the absence of beneficiaries.
At the same time, non-profit organizations always have money on their balance sheets, which is profit. But all these funds do not go into the hands of the owner, but to the further development of the company.
Financial institutions cannot operate without a beneficiary, since they involve the circulation of funds.
Are there any differences and similarities between a beneficiary and a beneficial owner?
The only similarity between them is that they profit from owning their own property.
Is it necessary for the beneficial owner to be the founder of the company?
No. If the founder of the company owns less than 25% of the authorized capital, he will not be a beneficial owner. If in the future the founder buys additional shares or makes a contribution to the authorized capital with the consent of the other active founders, then, accordingly, his status may change.
Any founder can act as a beneficiary, since he will own some share of the authorized capital.
Beneficiary – founder or CEO?
It does not matter what status a person has in a business - director, founder or co-owner. What is important is whether the person meets the requirements for establishing the status of a beneficial owner, which are set out in Art. 3 of Federal Law No. 115. In fact, he can be an owner without a legally secured share in the business and at the same time hold the position of CEO. In another case, he can make key decisions on the management of the company, but its director will be a completely different person.
In any case, the beneficial owner is either the sole founder of the company or one of several. But it may also be that he will be the person who subsequently acquires the necessary share in the authorized capital.
Are beneficiary and beneficial owner the same thing?
Not every beneficiary can be considered a beneficial owner. For example, a beneficiary may be a person insured under a life insurance policy, or it may be an ordinary recipient of a payment. Beneficial owner is a term used only in relation to organizations.
Beneficiary is a comprehensive concept that covers any beneficiary. Including a person who is actually the owner of a business and has significant influence on decision-making and profit distribution. He can own his share either directly or through intermediary firms and third parties.
Author of the article
Dmitry Svistunov
Dmitry Svistunov
Head of SEO and Development
Latest articles by this