China
Understanding BOI Filings in China: A Q&A on Determining the Beneficial Owner (Part III)
On April 1, 2024, the People’s Bank of China introduced rules for beneficial ownership information, effective November 1, 2024. Companies must report ownership details during registration, with existing entities required to comply by November 1, 2025. A Q&A series will clarify compliance.
hina’s new beneficiary owner information
On April 1, 2024, the People’s Bank of China (PBOC), in collaboration with the State Administration for Market Regulation (SAMR), issued the Measures for the Administration of Beneficial Ownership Information (hereinafter referred to as “the Measures”). These regulations officially came into effect on November 1, 2024.
Under the new requirements, all companies, partnerships, and branches of foreign companies established in China must report their beneficial ownership information at the time of registration via the relevant corporate registration system. Entities already registered before November 1, 2024, must complete their filings by November 1, 2025.
To help businesses navigate these new compliance obligations, we are launching a Beneficiary Owner Filing in China Q&A Series. Each issue will tackle a specific aspect of the filing requirements.
In this third issue, we explain: How to decide the beneficiary owner for different businesses, based on their ownership, structure, and other situations. Stay tuned as we break down the key compliance criteria and what businesses need to know.
According to Article 6 of the Administrative Measures for Beneficial Owner Information Reporting (“the Measures”), a natural person must meet one of the following three criteria to be identified as the beneficiary owner of a filing entity:
To be noted, Criteria 2 and 3 apply only when Criterion 1 is not met. For example, if Individual A holds 75 percent of the equity in Company A and enjoys 75 percent of its economic benefits, they are considered the beneficiary owner under Criterion 1—not Criteria 2 or 3.
| This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
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