How can I determine the UBOs of an entity?

A natural person qualifies as a UBO based on:

• Ownership: Holds directly or indirectly more than 25% of shares.
• Economic Interest: Holds directly or indirectly 25% or more of economic interest (profit distribution or reserves).
• Voting Rights: Holds more than 25% of voting rights.
• Control (other means than mentioned above):
  1. Has the right to appoint/dismiss board members.
  2. Exercises dominant influence based on shareholder agreements.
  3. Has operational control over company decisions.

• Statutory Director (also called: Pseudo UBO): If no UBO is identified under Ownership, Economic Interest, Voting, or Control, a statutory director registered with the public company registration office qualifies as a UBO.

If two or more persons have effective control based on other factors than voting rights, both must be designated as UBOs.

Examples:

• If you and your partner own a company together, and you hold 10% of the shares while your partner holds 90%, your partner is the UBO based on ownership. This is assuming you both have no additional control, special voting rights, or other means of influence over the company.
• If you and your partner own a company together, and you hold 10% of shares but have 80% of the voting rights, while your partner holds 90% of shares but only 20% of voting rights, both of you qualify as UBOs (you based on voting rights, your partner based on ownership).
• If you and three others each hold 25% of shares with no additional control, special voting rights, or other means of influence over the company, there will be four UBOs based on ownership.
• If five individuals each hold 20% of shares without additional control, special voting rights, or other means of influence over the company, the statutory directors may be designated as pseudo UBOs.