Beneficial ownership refers to the natural persons who, through direct or indirect means, exercise ultimate ownership or control over a corporation, such as through an ownership interest or control over decision-making.
The exact rules vary by country, but beneficial owners can include one or both of the following types of individuals:
- Individuals who own 25% or more of the company, and/or
- Individuals who exercise significant control over the company.
- Individuals considered to “exercise significant control” over the company are those responsible for managing and directing the business and may include executive officers or senior managers, such as CEO, CFO, COO, Managing Member, General Partner, President, Vice President, or Treasurer.
Directors typically are individuals who are members of the governing board of your company.
Beneficial ownership by a trust, holding company, or other legal entity
If one or more of your company’s owners is a legal entity, such as a trust or holding company, Stax will need to verify the information for the owners of that legal entity.
- For example: if you own 60% of Company A, which owns 50% of Company B, you are a beneficial owner of Company B and your percentage ownership is 30%.