UBO Register in Czechia

UBO Register in the Czech Republic. In the modern world, business transparency is gaining increasing importance in economic activity. The European Union actively promotes initiatives to combat money laundering and support for terrorist organizations, which has necessitated new rules for disclosing data on the ultimate beneficial owners of companies. The Czech Republic, as an EU member state, is also implementing these standards, adapting its legislation to European directives.

PERSPEKTIVA IMPEREAL s.r.o. offers a complete and qualified solution to all tasks related to company owners in the Czech Republic and their registration in the UBO Register. We undertake all routine work, guaranteeing high quality and compliance with legal norms. This allows our clients to focus on developing their business without being distracted by complex administrative procedures.

UBO Register in the Czech Republic: Changes

UBO Register in the Czech Republic: Changes. Recent changes in Czech legislation concerning the Register of Beneficial Owners (UBO) have generated significant interest among entrepreneurs and lawyers in the Czech Republic. These changes aim to bring national legislation into line with the Fifth EU Anti-Money Laundering Directive (5AMLD) and have far-reaching consequences for businesses in the Czech Republic.

Evolution of Czech legislation on the Register of Ultimate Beneficial Owners (UBO): from inconsistencies to clarifications.

The initial version of Act No. 245/2022 on the UBO Register was deemed by the European Commission not to be fully compliant with the 5AMLD directive. This necessitated significant revision of the legislation in the Czech Republic. The updated version, which came into force on October 1, 2022, introduced a number of key changes.

Key changes in the definition and registration of UBOs:

1. Expanded definition of beneficial owner. The criteria for determining a UBO in the Czech Republic have been expanded to include all shareholders holding 25% or more of shares, persons entitled to 25% or more of the profit share, and those who exert decisive influence over the company’s activities or over a corporation holding more than 25% of shares.
2. Revised approach to ownership chains. For complex structures in the Czech Republic with multiple interconnected companies, ownership stakes are now multiplied to determine the ultimate beneficiary.
3. Clarification of information in the register. The UBO Register in the Czech Republic does not distinguish between the concepts of «ultimate beneficial owner» and «person exercising decisive influence». Instead, only the beneficiary’s status (direct, indirect, substitute) and the method of its determination are indicated.
4. Preservation of the substitute UBO institution. In cases where the determination of the true beneficiary is impossible, it is permissible to indicate the company’s top management as the substitute UBO in the Czech Republic.

Practical implications for business in the Czech Republic

The introduced changes require Czech companies to:

1. Review ownership structure. Many companies were obliged to review their ownership structure by April 1, 2023, for correct UBO determination in the Czech Republic.
2. Update data in the register. By April 1, 2023, all companies had to update information about their beneficiaries in the UBO Register in the Czech Republic.
3. Comply with requirements to avoid sanctions. Non-compliance with requirements entails significant fines – up to 20,000 euros.
4. Restrictions on profit distribution. Companies in the Czech Republic with incorrectly registered beneficiaries lose the right to distribute profits to the UBO themselves, as well as to related legal entities.
5. Increased attention for companies with multiple shareholders. Special attention should be paid to companies in the Czech Republic with several shareholders, as well as companies that previously registered a legal entity as UBO, which may now no longer meet the updated criteria.

UBO Registration in the Czech Republic: A Detailed Guide

UBO Registration in the Czech Republic: A Detailed Guide. To successfully register, the following data must be provided:

Beneficial owner data:

1. Personal data: full name, date of birth, citizenship, and full postal address of residence.
2. Ownership information: percentage of voting shares or interests in the company, as well as the share in profit distribution (if the UBO status in the Czech Republic is determined based on received profits).
3. Additional information: any other information that helps clarify and confirm the beneficial owner’s status in the Czech Republic. This may include a description of the ownership structure or family ties.

Documentary confirmation

The law in the Czech Republic does not contain an exhaustive list of acceptable documents; however, proof may include, for example, a notarized statement (affidavit). All provided documents must confirm the stated information about the beneficial owner.

Application procedure

The application is submitted electronically in PDF format with a mandatory qualified electronic signature. Please note that only legal entities have the right to submit an application and make changes to the UBO Register in the Czech Republic. Exceptions are possible but rare. Foreign companies can also request information from the register in the Czech Republic but must provide a Czech address for receiving the response.

Document Processing and Registration

The documents attached to the application serve as confirmation of information but are not themselves registered in the Czech register. Judicial proceedings are not required, as UBO status is established based on the provided data. If the applicant wishes to include information from documents in the record, this should be indicated in the application in free form.

This guide provides general information. For accurate and up-to-date data, it is recommended to refer to official sources of Czech Republic legislation. 

UBO Register in the Czech Republic: Beneficiary Identifier 

UBO Register in the Czech Republic: Beneficiary Identifier. The Czech Ultimate Beneficial Owner (UBO) Register has achieved a new level of efficiency thanks to the introduction of unique identifiers – UIBOs. These identifiers, which are cryptographically protected sequences of characters rather than random codes or pseudonyms, significantly simplify interaction with the register in the Czech Republic.

UIBO Functionality

Unique Identification: UIBO serves as a reliable key for the unambiguous identification of each beneficiary in the Czech Republic’s UBO register system.

Obtaining a UIBO: when registering or updating beneficiary data in the UBO register in the Czech Republic, a unique UIBO is automatically generated and provided. The system issues this identifier upon successful completion of the application procedure, notifying the applicant accordingly. It is important to save the obtained UIBO.

Advantages of Using UIBO

Process Acceleration: UIBO optimizes interaction with the register, providing quick access to information and simplifying the application and query submission process.

Modification and Annulment of UIBO

Any change in beneficiary data in the UBO register in the Czech Republic leads to the automatic annulment of the previous UIBO and the generation of a new unique identifier. Thus, each UIBO is uniquely linked to a specific state of beneficiary data at a given point in time. The system automatically updates the identifier after changes are made.

Interaction with the UBO Register in the Czech Republic 

Interaction with the UBO Register in the Czech Republic involves not a one-time registration, but continuous maintenance of data actuality. This is a dynamic process that requires constant monitoring and timely information updates.

Obligations for Data Update

Actuality of Information: legal entities are obligated not only to initially enter information about their beneficiaries into the UBO register in the Czech Republic, but also to ensure the continuous actuality of this data, reflecting any changes in the ownership structure or beneficiary status. Information about beneficiaries is stored in the register for the entire period of their status, as well as for 10 years after the termination of this status.

Requirements for Information Provision

Response to Requests: in the absence of up-to-date information or in case of reasonable doubts about its accuracy, competent authorities, including customs services and law enforcement agencies in the Czech Republic, have the right to request updated beneficiary data from the organization. Timely provision of the requested information is mandatory.

Consequences of Non-Compliance

Risks and Consequences. Despite the non-public nature of the Czech UBO register, non-compliance with information update requirements can lead to serious negative consequences. For example, outdated data may raise suspicions of legal violations in the Czech Republic, including in the area of public procurement, which can lead to refusal to enter into advantageous contracts and damage to the organization’s reputation.

Extracts from the UBO Register in the Czech Republic 

Extracts from the UBO Register in the Czech Republic. The Czech Ultimate Beneficial Owner (UBO) register provides access to information through various forms of extracts, satisfying the needs of both private individuals and public authorities. These extracts play a key role in confirming beneficiary status and providing necessary data for various procedures.

Formats and Methods for Obtaining UBO Register Extracts

Electronic Extract: is a digital document signed with a qualified certificate from the Czech registration court. A free electronic extract can be obtained through the online register platform. An officially formalized electronic version with the necessary stamps and signatures can be obtained from the registration court for a set fee.

Officially Certified Extract (Paper Document): is issued by the competent registration court for a fee. To obtain such an extract, a legitimate interest must be demonstrated, for example, the prevention of criminal activity or the protection of public interests. The application is submitted to the relevant registration court in the Czech Republic.

Remote Access for State Authorities: law enforcement agencies, courts, tax authorities, intelligence agencies, public prosecutors, and other authorized state structures have direct remote access to UBO register in the Czech Republic information for the operational performance of their official duties.

Content and Legal Significance of Extracts

Complete and Accurate Information: all extracts contain complete and accurate information necessary for their legal significance. They are recognized as official documents and can be used on par with other official confirmations.

Services of PERSPEKTIVA IMPEREAL s.r.o.

Services of PERSPEKTIVA IMPEREAL s.r.o. Given the complexity and importance of complying with the requirements of the UBO register in the Czech Republic, many companies turn to professional consultants for assistance. PERSPEKTIVA IMPEREAL s.r.o. offers a wide range of services related to the registration and maintenance of beneficiary data in the Czech Republic.

1. Beneficiary registration.
2. Data updates.
3. Obtaining extracts.
4. Comprehensive support.
5. Adherence to high confidentiality standards.

Contacting PERSPEKTIVA IMPEREAL s.r.o. allows companies to focus on their core business by delegating routine tasks related to the UBO register in the Czech Republic to professional consultants. This helps avoid fines, reputational risks, and other negative consequences of non-compliance with legal requirements.

Why is it beneficial to work with PERSPEKTIVA IMPEREAL s.r.o.?

Why it is beneficial to work with PERSPEKTIVA IMPEREAL s.r.o. regarding work with the beneficiary register in the Czech Republic.

1. Deep expertise in UBO registration:

• our company specializes exclusively in matters related to the beneficiary register in the Czech Republic;
• we constantly monitor changes in legislation and the practice of applying beneficiary registration requirements;
• our specialists have many years of experience working with the UBO register in the Czech Republic and a deep understanding of all the intricacies of the process.

2. Comprehensive approach to service:

• we offer a full range of services — from initial beneficiary registration to maintaining data accuracy;
• clients can delegate all tasks related to the UBO register in the Czech Republic, focusing on their core business;
• our experts will handle document preparation, interaction with registration authorities, obtaining extracts, etc.

3. Guarantee of compliance:

• we are responsible for the quality of services provided and the correctness of document preparation;
• clients can be sure that their data in the UBO register in the Czech Republic will be kept up-to-date;
• this helps avoid the risks of fines, restrictions on profit distribution, and other negative consequences.

4. Confidentiality and security:

• we strictly adhere to the requirements for the protection of beneficiaries’ personal data;
• we use secure communication channels and store information in accordance with high security standards;
• clients can be confident that their confidential information is under reliable protection.

5. Economic efficiency:

• cooperation with us allows for optimizing expenses related to the UBO register;
• clients no longer need to maintain their own staff of specialists for these matters;
• our rates are designed to provide maximum benefit to clients.

Call or write to us right now and get a free consultation!