When setting up a new company, there are countless tasks to complete. Most business owners focus on opening a bank account, finding customers, setting up bookkeeping systems and getting ready to trade. One compliance requirement that is often overlooked is registration with the Register of Beneficial Ownership (RBO).
While it may seem like a simple filing, failing to register or update beneficial ownership information can cause unexpected delays and complications at crucial stages in a company’s development.
Why Does the RBO Matter?
The RBO records details of the individuals who ultimately own or control a company. New companies are generally required to register their beneficial ownership information and keep those details up to date as circumstances change.
Many directors only become aware of the requirement when a bank, lender, accountant, solicitor or regulatory body asks for evidence that the company is compliant.
Opening a Bank Account
Banks regularly request information on company ownership as part of their due diligence procedures. Missing or inaccurate beneficial ownership records can lead to delays when opening or operating bank accounts.
Applying for Business Finance
Lenders frequently review ownership and control structures when assessing loan applications. An up-to-date RBO filing helps demonstrate that the company has its compliance affairs in order.
Expanding Internationally
Businesses registering for taxes or establishing operations in other jurisdictions may be asked to provide ownership information. Having accurate records in place can help streamline these processes.
Changes in Ownership
Share transfers, family succession planning, new investors, company restructurings and group reorganisations can all trigger the need to update beneficial ownership information. These updates are often forgotten despite the underlying legal documentation having been completed.
Professional and AML Reviews
Accountants, solicitors, banks and other regulated professionals are required to carry out beneficial ownership checks as part of anti-money laundering legislation and may be required to report discrepancies where they arise.
What Happens If You Don’t Comply?
Failure to comply with beneficial ownership obligations can result in enforcement action and financial penalties. Guidance issued in relation to the RBO also notes increasing levels of compliance monitoring and enforcement activity.
More importantly for many businesses, non-compliance can create delays at exactly the wrong time, whether that is opening a bank account, securing funding, winning a new contract or expanding into a new market.
More Than Just an RBO Filing
For newly formed companies, the RBO is often one of several compliance obligations that require attention during the early stages of trading. Many business owners are unaware of the filing requirements until they are requested by a bank, lender, professional adviser or regulatory body.
Many directors who initially contact us with an RBO query also take the opportunity to review other important compliance and business matters such as:
- Company secretarial compliance
- Annual returns and CRO filings
- Year-end accounts preparation
- Audit and assurance services
- Corporation Tax and VAT compliance
- Payroll and bookkeeping support
- Management accounts and business reporting
- Business advisory services
At ECOVIS Ireland, we work with start-ups, owner-managed businesses and growing companies across a wide range of sectors. Whether you need assistance with an RBO filing, are setting up a new company, or are looking for a trusted adviser to support your business as it grows, our team would be happy to help.
Our clients often first engage with us for a specific compliance matter, such as an RBO filing, company incorporation, tax registration or annual return. From there, we support them with the practical accounting, tax and business advisory services needed to help their businesses grow and succeed.
How ECOVIS Ireland Can Help
If you have recently incorporated a company, are unsure whether your RBO is up to date, or would like to discuss your wider accounting, tax and business advisory requirements, please contact Ecovis Ireland. A short conversation today could help avoid delays, compliance issues and unnecessary costs in the future.
📞 +353 1 8230000
📧 info@ecovis.ie
🌐 www.ecovisireland.com
