Beneficial Ownership Information Report (BOIR)

Since the CTA Act was passed in 2021, due to the need for FinCEN to serve as the actual enforcement agency and formulate implementation regulations, the implementation date has been postponed many times, and it is finally determined to take effect in January 2024. According to the requirements of the CTA, all institutions/subjects, including corporations, limited liability companies, limited liability partnerships, and other business forms (excluding trusts, etc.), that are incorporated or registered to operate by filing documents with the Office of the U.S. Secretary of State or similar agencies are required to do so. Report their BOI data to FinCEN unless they qualify for certain exemptions. In terms of time, after the implementation of the CTA, entities established after January 1, 2024 need to submit BOI information within 90 days of establishment; while entities that existed before January 1, 2024 can submit their BOI information before the end of December 2024. BOI information.

Under the CTA, there are 23 exemptions, including listed companies (because they have required disclosure of ultimate beneficial owner information), banks and financial institutions, investment companies, insurance companies, government entities and public utility entities, non-profit organizations and other tax-exempt institutions, etc. In addition, there is an exemption for "Large Operation Company". Companies that meet this exemption need to meet the following conditions:

1. Annual revenue exceeds US$5 million;

2. Have more than 20 employees in the United States; and

3. Have offices in the United States (excluding shared office spaces).

Enterprises that do not meet the exemption conditions and need to declare should submit relevant information for each of their beneficiaries. "Beneficiary" refers to a person who directly or indirectly has significant control over an enterprise, or who owns or controls 25% or more of all interests in an enterprise, which may be achieved through a contract, relationship, arrangement, mutual agreement or other means. Beneficiary information (BOI) should include:

Legal name:

date of birth:

current home address:

Identity verification information, which can be a passport number, driver's license number, or other government-issued identification document (must include photo).

According to statistics, after the CTA is implemented, about 90% of companies in the United States will need to submit their BOI information. Companies that fail to declare on time or provide false information will face civil and criminal penalties, and will have to pay a civil penalty of $500 for each day of delay. , and may face a fine of more than $10,000 and up to two years in prison. As the CTA implementation date approaches, companies should conduct timely analysis and evaluation to determine whether declaration is required and whether they meet any exemption conditions. For enterprises that need to declare, they should collect relevant information in a timely manner and fulfill their reporting obligations in accordance with the provisions of the CTA.