The duty to register the ultimate beneficial owner in the Slovak Commercial Register is approaching. What about the Czech Republic?
By 31 December 2019 most legal entities registered in the Slovak Commercial Register must file for the registration of their ultimate beneficial owner (i.e. an individual holding at least a 25% direct or indirect share in the voting rights, economic benefits or registered capital of the legal entity or otherwise controlling such entity). If such an individual cannot be identified, the legal entity's top management will be deemed to be the UBOs. The registered data are currently not accessible to the public, but only to public administration subjects (including courts and tax offices).
In the Czech Republic the deadline for registration of UBOs expired on 1 January 2019, but there are no direct sanctions for non-compliance with these rules. This should change with the new bill on the register of UBOs, which should introduce not only penalties of up to CZK 500,000, but also prohibit unregistered UBOs from exercising their voting rights and participating in dividends or other distributions. The draft bill is currently in the early stages of the legislative process.