Dec. 2024 - Management Measures of Beneficial Owner Information in China

Scope of the Regulation

The regulation applies to the legal entities outlined below:

• companies;
• partnerships;
• branches of foreign companies; and
• any other entities stipulated by the authorities.

Definition of Beneficial Owner

• A natural person is identified as a beneficiary owner if he/she owns more than 25% of the entity, shares, or partnership interest of the filing entity directly or indirectly, or effectively controls them or derives gains from them;
• If no such person exists, the entity’s managing personnel are considered the beneficial owners.

Report requirement

When registering, entities must report information of the Beneficial Owner to the local authority:

• basic personal information, including name, gender, nationality, date of birth, address, contact details, valid identity certificate (passport or ID card);
• beneficial ownership information, including the type, date of formation and termination (if any).

Transition period

Entities registered before the implementation of these new measures have until 1 November 2025 to comply with the new regulations.

Exemptions

Entities meeting all criteria below can be exempted from filing beneficial owner information upon commitment: 

• registered capital not exceeding CNY10 million (or equivalent amount in foreign currency), and
• shareholders and partners are all natural persons, and
• there are no natural persons other than shareholders or partners who effectively control them or derive gains from them, and
• there are no natural persons who control the filing entity or derive gains from it through methods other than equity or partnership interest.

Points of attention

• The entity applying to the new regulation shall report the beneficial owner information and submit to the local authority at the time of registration for establishment and alteration;
• The beneficial owner information shall be filed through the registration system within 30 days from the date of change or non-compliance with the criteria for exemption;
• The Company may be fined not more than CNY 50,000 if the information of beneficial owner filed is inaccurate and correction is not made within a stipulated period.

Forvis Mazars Corporate Secretarial team can assist you to go through the registration process, do not hesitate to reach us to assess your situation.