News News Flash February 2019 - The Central Register of the Effective Beneficiary (RCBE) 31/01/2019

Following the publication of the Legal Regime on the Beneficial Owner Central Register, approved by Law No. 89/2017 of August 21 and by Ordinance No. 233/2018 of August 21, we recall some of the main obligations to be fulfilled from 1January 2019.

The Beneficial Owner Central Register (BOCR): consists on a database with information about the natural persons who, directly, indirectly or through third parties, have the ownership and effective control over the Reporting Entities.

Entities subject to the BOCR: collective entities that carry out an activity or practice an act or legal transaction in national territory that determines the obtaining of a tax identification number (NIF) in Portugal, namely companies, associations, foundations, business entities, civil societies, cooperatives, funds or trusts.

Initial Declarative obligation to BOCR:

i. Entities constituted before October 1, 2018:

- Entities subject to commercial registration - until 30 April 2019;

- Entities not subject to commercial registration - until 30 June 2019.

ii. Entities constituted after October 1, 2018 – within 30 days:

- Constitution of the entity subject to commercial registration;

- Registration in the Central File of Legal Persons of an entity not subject to commercial registration;

- Attribution of NIF by the tax authority, when it is an entity that should not be registered in the Central File of Legal Persons.

Update declaration: within 30 days following any changes

Annual confirmation: From 2020, by July 15 of each year.

Penalties: Failure by the company to keep the register updated is punishable by a fine and implies that the company is prohibited to:

- distribute profits for the year or make an advance on profits;

- enter into supply contracts, public works contracts or purchase of services and assets with the State;

- compete for the concession of public services;

- receive support from European structural and investment funds;

- intervene as a party to any business which has as its object the transfer of ownership or the constitution, sale or acquisition of any other rights over immovable property.

Should you need any further information on the issues above or help in the declaration process, please do not hesitate to contact us.

DISCLAIMER: Although GPA has been careful in drafting this document, it will not be legally responsible for any damage or prejudice arising from a decision made on the basis of the information described herein. This information is merely informative and does not replace any professional advice, so this document should not be considered as a legal opinion.