| Dear reader,
Important news: as of 1 January 2019, all companies registered in Lithuania must obtain, collect and register information on their ultimate beneficial owner(s) (UBO) with the Information System on Participants of Legal Entities (JADIS) by 1 July 2019.
The obligation to disclose information on the UBOs to JADIS arises from implementation in Lithuania of the 4th Anti-Money Laundering Directive. Accurate and up-to-date information on UBOs is considered to be a key measure in combating potential misuse of the corporate veil by hiding the true identities of persons behind corporate structure.
Also, we are pleased to invite you to our main annual M&A event in the Baltic region – the Baltic M&A and Private Equity Forum 2018, to be held in Tallinn on 18-19 October 2018. Giving insight into the latest deals in the Baltics, the forum features personal stories from investors and entrepreneurs making things happen, as well as panels on hot topics in the M&A and PE scene. Don’t miss it!
Ultimate beneficial owner – a person who owns or controls the company
UBO is deemed to be a natural person who owns or either directly or indirectly controls the company or otherwise exercises control over the company. Direct ownership implies a shareholding of 25% plus one share or an ownership interest of more than 25% in an entity. Indirect ownership occurs when one or more legal entities, under the control of the same natural person, holds 25% plus one share or an ownership interest of more than 25% in another legal entity. Further, the UBO of the company is considered to be a natural person who holds the position of senior managing officer in an entity if neither direct nor indirect control has been established or doubts arise as to whether a person identified is the UBO.
Ultimate beneficial owners in trusts
In the case of trusts, the UBO is considered as any of the following: the settlor, the trustee(s), the protector, if any, the beneficiaries or persons in whose main interest the legal arrangement or entity is set up or operates, or any other natural person exercising ultimate control over the trust by means of direct or indirect control. Lastly, in the case of legal entities such as foundations and legal arrangements similar to trusts, the UBO is the natural person holding equivalent or similar positions to those identified as UBO in trusts.
Filing information with JADIS
Information about UBOs must be filed with JADIS by all legal entities having their registered office in Lithuania. By way of derogation, no obligation arises to publish data on JADIS for legal entities whose owner (sole participant or shareholder) is either the state or a municipality.
The obligation to file data with JADIS lies with the managing director (CEO) of the undertaking. Any change in the data must be filed with JADIS within 10 days.
The sanction for failing to file UBO data or for providing incorrect and/or incomplete information varies from EUR 30 to EUR 1,450 and is imposed on the managing director (CEO) of an entity.
Turn peers into partners – attend the Baltic M&A and Private Equity Forum 2018
Offering the best insights into the challenges and opportunities of the Baltic M&A and private equity scene, the Baltic M&A and Private Equity Forum has become the main networking event for the Baltic M&A industry and market participants interested in the region.
The forum gathers representatives of private equity and venture capital funds and investment banking, consultants, lawyers, investors, and other representatives of the financial sector, as well as interested business executives and owners.
The forum is organised by Sorainen and the Estonian business daily Äripäev, in partnership with the Baltic business dailies Verslo žinios (Lithuania) and Dienas bizness (Latvia), and the Latvian, Lithuanian and Estonian Private Equity and Venture Capital Associations.
For more info and registration click HERE.
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