The realm of corporate entities and their legal structures can be complex, especially regarding Ultimate Beneficial Ownership (UBO) transparency. A common question arises: can a Stichting Administratiekantoor (STAK) be considered a UBO? Let's delve into this matter.

Definition of a UBO

Firstly, what is a UBO? The UBO is the ultimate beneficial owner of a legal entity, meaning the natural person ultimately benefiting from or having control over an organization. UBOs can exercise control over an entity, directly or indirectly.

STAK and UBO: Is There a Connection?

In the case of a STAK, it's important to understand that the STAK itself isn't necessarily considered a UBO. The STAK holds legal ownership of shares in a company, while the economic rights belong to certificate holders. These certificate holders can be considered UBOs, as they ultimately benefit from the economic advantages arising from owning these shares.

UBO Registration Obligation and STAK

Under UBO registration obligations in various jurisdictions, identifying and registering the ultimate beneficial owners of an entity is required. In the case of a STAK, where economic interests lie with certificate holders, these individuals must be registered as UBOs, while the STAK itself isn't considered as such.

Transparency and UBO Regulations

UBO transparency requirements aim to combat money laundering and financial crimes. While a STAK itself isn't considered a UBO, the certificate holders, who ultimately benefit from economic interests, are subject to these regulations and must be identified as UBOs.

Conclusion

In summary: a STAK itself generally isn't considered a UBO. However, the individuals behind the economic interests (the certificate holders) are regarded as UBOs and are subject to registration requirements in line with applicable UBO regulations. Therefore, accurately documenting and registering the identity of their certificate holders is crucial for STAKs to comply with legal requirements. Diligent compliance with these regulations enhances transparency and integrity within corporate entities, aiding in preventing misuse of financial structures.

Share Council assists in establishing a STAK and addresses related queries. Schedule a no-obligation meeting with our CEO to explore how we can assist your company.