What is Beneficial ownership structure?

A beneficial ownership structure refers to the distribution of ownership in a company, where the actual, underlying individuals or entities that ultimately benefit from the ownership of the company are identified. In Switzerland, this structure is important for transparency in corporate governance and for ensuring compliance with anti-money laundering (AML) and tax regulations.

Key Elements of a Beneficial Ownership Structure

The beneficial ownership structure outlines who ultimately controls or benefits from the assets or shares of a company, even if they are not listed as the legal owners. This ensures transparency in the ownership chain and helps to identify individuals who may be indirectly controlling a company through layers of intermediaries.

  • Ultimate Beneficiaries: These are the individuals who have the final say in the management and decision-making processes of the company, regardless of the legal title of the shares or assets.
  • Shareholding Disclosure: The structure includes detailed information about the direct and indirect ownership of shares, ensuring that those who truly control the company are disclosed to regulators and other stakeholders.
  • Control and Influence: Beneficial owners may not always be the shareholders or directors but can exercise control over the company through voting rights, financial interests, or other forms of influence.

In Switzerland, companies are required to maintain and disclose their beneficial ownership structure as part of efforts to combat money laundering, terrorist financing, and tax evasion. This information must be made available to authorities, ensuring that the true owners and controllers of companies are identified.