If you’re an entrepreneur and engaged in various businesses with German corporations, then you should know what laws must be followed. Since you’ve invested some money in a particular business, then it’s just right to guarantee that your asset is protected. You’ll know that you’re involved with legal corporate operations when there’s a mandatory transparency register acquired.
This is an obligatory requirement for all commercial industries in Germany – see https://www.corestonelegal.de/transparenzregister/pflicht to learn more. Whether you’re the owner or stockholder of a particular company, you’re obliged to report, certifying your status in this firm. It’s a law that involves local and foreign investors in the country, so they must discuss this with their lawyers.
You shouldn’t fail to register, especially after getting a notice regarding the deadline for registration. This is your responsibility as an individual or entrepreneur who’d like to continue living and serving in the country. Thus, if you’re not briefed on this obligation in Germany, then we should start learning about it.
Transparenzregister
In the business industry, the transparenzregister or transparency register will mandate owners to disclose details of their company. This data includes ownership, finances, profit, and other things that comprise their framework. If they’re not registered through Mitteilungsfiktion or the notification fiction, then they’ll have to do it with Lobbyregistergesetz or LobbyRG.
This is typically for beneficial owners since they possess over 25% of ownership or shares. The department authorized in managing these concerns is Bundesanzeiger Verlag GmbH.
The reason why this became compulsory is to prevent money laundering in the country. We’re all aware of how syndicates move and they’re after illegal activities. Thus, through a transparency register, it would be easier to track and monitor those who are engaged in criminal undertakings.
Who should register?
Existing and newly-established corporations must accomplish this requirement. Various industries under law, stocks, associations, foundations, partnerships, etc. are required to enlist.
Information about the beneficial owners should be transmitted to the authorized office. If there are changes to personal information, then this must be updated right away.
Local and foreign nationalities are asked to comply with this obligation. Reporting can be done by representatives of the organization, such as managing or board of directors.
How do you enlist with the Transparenzregister?
To start the procedure, you can go online for the preliminary step – click here to proceed. Thus, you can find there the “Register” button, so click that to start filling up the form. Don’t forget your email address because this is needed for confirmation purposes.
When the account is already confirmed, you may advance to the next step. Login to your account and work on advanced registration. You may now enter or update your record and request for inspection to be verified.
By the way, don’t forget that this isn’t just about the owners. You should know every detail about your establishment including the number of employees, annual earnings, and taxes. Be reminded that you have to make an annual update so you’ll be doing the same process again.
Is there a fee exception and who’s exempted?
If you belong to a non-profit organization, then you may apply for charge exceptions. You’ll have to apply so that you can avail of this benefit. Laws regulating this can be found in the ordinance called, Transparenzregister gebührenverordnung.
However, you must provide all the necessary documents about your events. Either ethical, religious, or cultural purposes, there must be proof of your activities and other details related to these.
Transitional Periods
Before August first, 2021, most establishments were given a provisional period. In this way, they can comply with the requirements for obligatory reporting. This is stated under Section 59 (8) of the Money Laundering Act for your information.
Now, if you’re enlisting during these days, you can avoid violation penalties. However, this doesn’t mean that you’re going to ignore this law. They’re just giving you time to prepare so you still need to conform with your obligations.
Discrepancy Reports
It’s your duty and responsibility as a manager to submit a statement when any information filed on your transparency register is incorrect or outdated. These reports can be sent electronically as well. Correcting discrepancies will be accepted if you have previous online registration.
Is it possible to submit incorrect or missing details? Well, if you missed entering the name in the list or if this person came recently, then he can be added. Sometimes, typographical errors can be made, too, so these must be revised.
When the said missing or wrong information won’t be modified for corrections, then you’ll face the consequences. Such situations will be under the Federal Office of Administration’s control. Thus, this legislation may question your honesty and decency.
Fines
In any country, you can never be excused just because you’re unfamiliar with the existing laws. A local or foreign nationality in Germany, especially someone who’s engaged in business must know the law. Even if you’re just coming for a holiday, you should be aware of what’s lawful and unlawful.
Therefore, if you failed to enlist or update your records in the Transparency Register data, then you’ll be charged. This may even affect the credibility of your organization.
Minor violations would cost you €100,000 and up to €1 million for serious ones. This will even depend on how much the legislator will be demanding from your company. They typically check on the annual revenue and they’ll charge you 10% of this.
Transparenzregister Inspection
Once your data is already saved in the database, then this shouldn’t be touched for no valid reason. The Transparenzregister are strictly prohibiting unauthorized personnel to have access to these pieces of information. The nature of records collected by this office is quite sensitive, so it has to be secured.
Can someone inspect the details of a particular establishment in Germany? If the authorities are required to access them as a part of their obligations, then they can get permission. But if the public demands for justified reasons, they can be granted an inspection as well.
