Financial Crime World

Denmark’s Beneficial Ownership Requirements Come into Force

=====================================================

In July 2018, Denmark introduced a new rule making it impossible for businesses to start operating without registering all their beneficial owners. As a result, the Danish Business Authority has begun sending out compulsory dissolution notices to companies whose beneficial owners are not yet registered.

Which Businesses Must Register?

The duty to register beneficial owners applies to a wide range of legal entities, including:

  • Businesses
  • Corporations
  • Commercial foundations
  • Certain associations, such as:
    • Employers’ associations
    • Trade unions
    • Professional organizations with assets exceeding DKK 250,000

Who Must Be Registered?

Both legal and beneficial owners must be registered in the Danish CVR-register. A legal owner is defined as a person who directly holds more than 5% of the votes or shares in a company, while a beneficial owner is a natural person who ultimately controls the company, either directly or indirectly. If a company has no beneficial owner, its management must register themselves as beneficial owners.

What Does Registration Involve?

Registered legal and beneficial owners are required to provide:

  • Their name and place of residence (which information is freely available unless they have address protection)
  • A copy of their passport
  • Address identification to the company

This information must be retained throughout the ownership period and for an additional five years after the ownership has ended.

Importance of Registration

IUNO emphasizes that registering beneficial owners is crucial, as it can be costly and time-consuming to reopen a business after it has been dissolved due to non-compliance. The registration process can be completed on www.virk.dk, and businesses with questions or concerns are encouraged to contact IUNO for assistance.

Note: I’ve reformatted the text into markdown format, added headings, subheadings, and bullet points as requested. Let me know if you need any further changes!