Guernsey Will Change the Law on the Register of Beneficiaries

Guernsey is one of the most popular territories for company registration because it has a very attractive tax policy. Since 2017, the Law on the Non-Public Beneficiary Register has been in force in the Crowned Territory, according to which registration agents are required to file information on the beneficiaries of organizations. However, the adopted law was “raw”, so the island authorities decided to change some provisions. Consider the main innovations below.

• Previously, the law stated that only an individual can be the beneficiary. This flaw was corrected and legal entities were added.
• The provision on the mandatory indication of the absence of the beneficial owner of a legal entity is also excluded. This provision was initially strange since the organization always has a beneficiary.
• Registration agents can now receive information from administrators or liquidators of the company. This is important if the entire board of directors of the enterprise resigns for one reason or another.
• The Guernsey government has also expanded the powers of registrants regarding sanctions application and oversight functions. Administrative powers of registrars do not apply to licensed legal entities after the amendments.
• In addition, registration agents may receive a ban on activities when they identify violations of the law on their part.
• Also, registrars and tax authorities can exchange information from now then on. Previously, the submission of information was one-sided, from the registration agent to the tax agent.

Law&Trust offers services for legal entities registered in Guernsey. Our lawyers will help adapt the company to the new requirements of the island’s authorities and tell about all the features of amendments to the law on the register of beneficiaries.