On January 1, the so-called Corporate Transparency Act (“the CTA”) came into force in the United States, a federal law that has imposed on companies established in the United States the obligation to identify their final beneficiaries (“beneficial owners”). or “BOs”) before the Administration of that country (“the Obligation”). It is estimated that the new requirements will apply to some 32 million pre-existing corporate entities, and that in the future this number of obligated companies will increase at a rate of 5 million new entities per year.
Which Companies Must Comply with the Obligation?
The Obligation applies to all entities organized in any state of the United States as well as foreign entities registered in the United States to do business in that country.
Which Companies Are Exempted from the Obligation?
The CTA includes a long list of entities exempt from complying with the aforementioned reporting obligations (banks, insurance companies, listed companies, etc.). Very especially, the so-called large operating companies are exempt from the Obligation, that is, those entities that, among others, maintain an office in the United States and employ no less than 20 employees.
Who are the Final Beneficiaries to be Reported?
