Updated information on the ultimate beneficial owners of legal entities.

Information related to activity of
legal entities registered in Ukraine

Dear colleagues!

We would like to inform you about the norms of the legislation on UPDATING OF INFORMATION ABOUT THE ULTIMATE BENEFICIAL OWNERS OF LEGAL ENTITIES.

In particular, in compliance with the requirements of the Law of Ukraine “On State Registration of Legal Entities, Individual-Entrepreneurs and Public Associations” of 15.05.2003 IV (hereinafter – the Law on Registration), legal entities must

  • have information about the ultimate beneficial owner and ownership structure;
  • keep such information up to date; and
  • ANNUALLY CONFIRM INFORMATION ABOUT THE ULTIMATE BENEFICIAL

Summary (conclusion)

  1. Initial disclosure of the beneficial owner – until July 10, 2022;
  2. If submitted in 2021 – Legal entities must submit updates on the final beneficial owner within 14 days from the date of state registration of the legal entity and to do so every year.
  3. If there are changes in the final beneficial owner – update the data within 30 working days.

Detailed information

Thus, in accordance with paragraph 22 of Art. 17 of the Law on Registration, legal entities are obliged to keep information about the ultimate beneficial owner and ownership structure up to date, update it and notify the state registrar of changes within 30 working days from the date of their occurrence, and submit documents confirming these changes. If there are no changes in the ownership structure and information on the ultimate beneficial owner of the legal entity, legal entities must notify the state registrar of the absence of such changes during state registration of any changes to the information on the legal entity contained in the Unified State Register (OMP: an exhaustive list of information provided for in Article 9 of the Law).

However, in accordance with Art. 171 of the Law on Registration, legal entities must annually confirm the information about the ultimate beneficial owner, starting from the next year from the date of state registration of the legal entity, within 14 calendar days.

Please note that these provisions of the Law on Registration exist and are relevant in parallel with the obligation of legal entities to submit to the state registrar information on the ultimate beneficial owner and ownership structure by July 10, 2022, provided by the Law of Ukraine “On Prevention and Counteraction to Legalization (money laundering) of proceeds from crime, terrorist financing and financing of proliferation of weapons of mass destruction ”of December 6, 2019 № 361-IX (hereinafter – the Law on Prevention and Counteraction to Money Laundering).

Thus, the disclosure of information about beneficial owners and ownership structure is carried out at several stages of existence and activity of legal entities:

  1. Initial disclosure – by July 10, 2022 (required by the Law on Prevention and Counteraction to Money Laundering);
  2. Annual confirmation – within 14 calendar days, starting from the next year from the date of state registration of the legal entity (required by the Law on Registration);
  3. Update of information – within 30 calendar days from the date of changes in the ownership structure and/or composition of beneficial owners (required by the Law on Registration).

Additionally, we would like to inform you that, in accordance with the Resolution of the Cabinet of Ministers of Ukraine “On Approval of the Procedure by the Ministry of Justice of Control over Activity in the Sphere of State Registration of Real Property Rights and Encumbrances and State Registration of Legal Entities, Individual – Entrepreneurs and Public Associations” of 21.12. 2016 № 990, in case of detection during the control over the activity in the field of state registration of facts of non-submission by the legal entity to the state registrar of information about the ultimate beneficial owner, the Ministry of justice informs the head of a legal entity or the person entitled to act on behalf of such legal entity (executive body), with the requirement to apply within a month to the Ministry of Justice to draw up a protocol on administrative offenses in accordance with the law, provided for in part six of Article 166-11 of the Code of Ukraine on Administrative Offenses (hereinafter – KuAO).

This article of the Code of Administrative Offenses provides for the imposition of a fine in the amount of 17,000 to 51,000 hryvnias, as for

  • failure to submit or late submission of information on the ultimate beneficial owner or documents to confirm information on the ultimate beneficial owner, and for
  • non-submission or late submission of information on the absence of the ultimate beneficial owner.

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Please note that the information contained in this information letter is for general reference only and cannot be considered legal advice. We hope you found this information useful. We continue to monitor the latest changes in Ukrainian legislation and its practical usage.

If you need a more detailed explanation of the law, please contact us at any time convenient for you.

Contact persons:

Olexandr Daineko, associate
+380 44 391 30 01 od@omp.ua

Igor Ogorodniychuk, partner
+380 44 391 30 01 io@omp.ua


Igor Ogorodniychuk (Partner)