CRBO – Deadline for Initial Statement

CRBO – Deadline for Initial Statement

Order No. 4510/2019, of the Cabinets of the Secretary of State for Fiscal Affairs and the Secretary of State for Justice (the “Order”), which was published on 3 May, states that the initial declaration for the purposes of the Central Register of Beneficial Ownership (“CRBO”) can be made on or before 30 June 2019.

As previously announced, the Legal Framework of the CRBO[1], which is already in force, requires that the entities subject to this framework[2] make a statement about their beneficial owners. The deadline of 30 April 2019 was initially set as the limit of the initial declaration phase for entities subject to commercial registration that were already incorporated on 1 October 2018[3], and the Order clarified that its completion by the next 30 will not incur any penalties.

It should also be noted that entities that do not make the Declaration of the Beneficial Ownership within the applicable deadlines are subject to the legally established sanctions[4], among which are the prohibition:

(i) of the distribution or advance on profits:

(ii) to benefit from European/public funds; and

(iii) to be a party to any deal that has as its object the transmission of property, whether for a consideration or free of charge, or the constitution, acquisition or disposal of any other real rights of enjoyment or security over any real estate.

Espanha e Associados created a team, within its corporate department, dedicated to advising clients on the fulfilment of the CRBO obligations.

 

[1] Approved by Law no. 89/2017, of 21 August and further regulated by Ordinance no. 233/2018, of 21 August (the “Ordinance”).

[2] Pursuant to article 3 of the Legal Framework of the CRBO, the following entities are subject to the regime:

“a) Associations, cooperatives, foundations, civil and commercial companies, as well as any other personalized collective entities, subject to Portuguese law or foreign law, that carry out an activity or practice a legal act or business in the national territory that determines the obtaining of a number of tax identification (NIF) in Portugal;

b) Representations of international legal persons or of foreign law that are active in Portugal;

c) Other entities that, pursuing their own objectives and activities different from those of their associates, are not endowed with legal personality;

d) Fiduciary management instruments registered in the Madeira Free Trade Zone (trusts);

e) External financial branches registered in the Madeira Free Trade Zone

2 – The trust funds and other centres of collective interests without legal personality with a similar structure or functions are also subject to the RCBE, when they do not fall under the previous number, (…)”, in some special cases.

[3] Please refer to article 13/1/a) of the Ordinance.

[4] Please refer to article 37 of the Legal Framework of the CRBO.

Tags:
CRBO, RCBE
Rita Beirôco

Rita Beirôco

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