Country Comparison on Central Registry Requirements for Legal Persons
Overview of Central Registry Requirements in Southeast Asian Countries
The following table compares the requirements for central registries in various Southeast Asian countries:
| Country | Covered by Registry | Reported Information Verified by Registrar | Sanctions for Late/Non-Submission | Public Access |
|---|---|---|---|---|
| Cambodia | Companies, partnerships, sole proprietorships | No | Basic company information publicly accessible | Limited public access to basic company information |
| Indonesia | Companies, foundations, associations, trusts | Limited verification by Registrar | Penalties for late submission | Publicly accessible upon registration and payment of fee |
| Malaysia | Companies, sole proprietorships, partnerships | Unclear | Power to strike-off company; penalties ranging from $12 to $140 | Publicly accessible upon registration and payment of fee |
| Philippines | Stock and non-stock corporations, foreign corporations, partnerships | Verification of company name upon registration | Corporation and responsible directors/officers can be held liable administratively, civilly, and/or criminally | Not publicly accessible |
| Thailand | Sole proprietorship, partnerships, and limited companies (including with foreign investment) | No information available | No information available | Basic legal ownership information accessible to the public |
| Vietnam | Partnerships, cooperatives, companies (including with foreign investment) | Yes, but challenging in practice | No basic company information publicly accessible |
Recommendations for Strengthening Reporting Mechanisms on Legal and Beneficial Ownership
- Define ‘Beneficial Owner’: Adopt a legislative definition of ‘beneficial owner’ that captures the natural person(s) who ultimately owns or controls the legal person or legal arrangement.
- Maintain Beneficial Ownership Information Onshore: Ensure that legal persons maintain beneficial ownership information onshore and inform state authorities about any changes regarding their beneficial owners.
- Verify Beneficial Ownership: Require financial institutions and designated non-financial businesses and professions (DNFBPs), including trust and company service providers, to identify and verify the beneficial ownership of their customers and disclose any discrepancies to relevant authorities.
- Central Register of Beneficial Owners: Consider setting up a central register of the beneficial owners of all registered legal persons and legal arrangements.
- Access to Accurate Information: Ensure that competent authorities (including anti-corruption, law enforcement, and prosecutorial authorities) have access to accurate and current information on beneficial and legal ownership.
Conclusion
By implementing these recommendations, Southeast Asian countries can strengthen reporting mechanisms on legal and beneficial ownership, ensuring comprehensive, accurate, and up-to-date information exists for law enforcement agencies and financial institutions. This will help prevent illicit activities such as money laundering and tax evasion, promoting a more transparent and stable business environment in the region.