November 13, 2024
However, sole proprietorships (enkeltpersonforetak) and publicly listed companies that are already subject to existing transparency regulations are exempt from this obligation.
If no clear beneficial owner can be identified, the company is required to state that identifying such a person was not possible.
In this article, you will find answers to the following questions:
- What is the Register of Beneficial Owners?
- Who needs to register?
- Who is considered a beneficial owner?
- When must registration be completed?
- How to register?
- Why is the register important?
What is the Register of Beneficial Owners?
The Register of Beneficial Owners collects data on individuals who have real influence over a company’s operations. The purpose of this initiative is to enhance transparency and prevent companies from being used for illegal activities such as money laundering or terrorist financing.
Who Needs to Register?
The registration requirement for beneficial owners applies to most entities conducting business in Norway, including:
- Limited companies (AS)
- Foundations, organizations, and associations
- Housing cooperatives
- Certain other types of businesses and organizations, as stipulated by regulations
However, sole proprietorships (enkeltpersonforetak) and publicly listed companies that are already subject to existing transparency regulations are exempt from this obligation.
Who is Considered a Beneficial Owner?
A beneficial owner is a natural person who has actual control over a company. Typically, these are owners, shareholders, or individuals who can exert decisive influence over the business. According to the regulations, a beneficial owner is considered to be someone who:
- Directly or indirectly owns at least 25% of shares or voting rights in a company.
- Exercises actual control over the company, even without formal ownership of shares.
If no clear beneficial owner can be identified, the company is required to state that identifying such a person was not possible.
When Must Registration Be Completed?
Companies and organizations are required to register their beneficial owners within a specified timeframe, as per Norwegian law. Registration must take place within 14 days of company registration or following any significant changes to the ownership structure. Updating the registry is also mandatory whenever changes occur in beneficial ownership.
Failure to register or providing false information may result in penalties, including administrative fines.
For already registered companies, there is a transition period. The Act on the Register took effect on October 1, 2024. Companies and other entities have until July 31, 2024, to comply with registration requirements.
How to Register?
Registration is conducted through the Altinn platform, which allows the electronic submission of the necessary information. The registration process involves providing detailed information about beneficial owners, enabling Norwegian supervisory authorities to monitor company ownership structures and prevent illegal activities.
Why is the Register Important?
The Register of Beneficial Owners enhances transparency within the business environment and enables effective prevention of money laundering and terrorist financing. Increased transparency regarding company ownership structures fosters trust in the market and protects against financial misconduct. For businesses and organizations that comply with regulations, the register serves as an important step toward building a stronger reputation and credibility.
Novum Can Help with the Registration
We invite companies planning to register their business in Norway, as well as existing entities, to contact us. We can handle the registration process on behalf of your company after fulfilling certain formalities.
For inquiries regarding the register of beneficial owners, please contact our office:
- Phone: +47 466 348 71
- Email:
office@novum.no - Phone: +47 466 34 825
- Email:
anna.korpalska@novum.no
Summary
The Register of Beneficial Owners in Norway is a mandatory system aimed at enhancing company transparency. Every company is required to register its beneficial owners, who are the individuals with actual control over the business. Registration is conducted via the Altinn platform and involves submitting information about beneficial owners to combat money laundering and other abuses effectively.
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