In the financial program guides, we often come across the term Central Register of Beneficial Beneficiaries, as in most cases the registration of a business in the Central Register of Beneficiaries is a basic condition in order to join a financial program.
However, there are many entrepreneurs who do not know what the specific register is and why they should register their business there.
What is the Central Register of Beneficial Beneficiaries?
The Central Register of Beneficial Beneficiaries (KMBD) is under the General Secretariat of Information Systems and is essentially a central database that includes information on the beneficial owners of companies, organizations and other legal entities.
It was created in Greece in order to record the real persons who are beneficiaries or control companies, organizations and legal entities.
Who are required to register their business in the Central Register of Beneficial Beneficiaries
All legal entities that are based in Greece or carry out business activities that are taxed in Greece are required to register the legally required details of their beneficial owners in the Tax Office.
The following are exempted from the obligation to register with the KMPD:
- All bodies, legal persons and legal entities belonging to the Register of Bodies of the General Government
- Those listed on the stock exchange
- Legal persons and legal entities that are not taxed in Greece.
Who is the real beneficiary?
The beneficial owner is the person or people who control or benefit from a corporate entity or any other legal entity. Under the corporate structure, the beneficial owners are the people who control or own the company.
The beneficial owners may be shareholders, managers, partners or other persons who control the company. In cases where the company is not controlled by a natural person, the real beneficiaries may be the managers of the company or other related entities.
The creation of the Central Register of Beneficial Beneficiaries is linked to the implementation of the European Union directive, 2015/849/EU, to combat the growth of corruption, as well as to efforts to improve transparency in the activities of legal entities and companies.
Overall, the Central Register of Beneficial Beneficiaries was created to protect the public interest and to prevent the creation and use of companies for fraud, tax evasion and other illegal activities.
The goal of the E.U. is the interconnection of the national Registers of Beneficial Beneficiaries created in the countries of the European Union, through the European central platform. Data recorded, stored and reproduced in any way is kept online for 5 years.
It is noted that non-compliance with the Tax Code entails the non-granting of proof of tax awareness of the liable legal persons and entities.
Also, failure to comply with the obligation to register in the Central Registry constitutes an infringement and the liable legal entities are assessed a fine of 10,000 euros and a deadline is set for their compliance. In case of non-compliance or recidivism, the fine is doubled.