Key Requirements and Compliance Guidance of Beneficial Ownership Information Filing for Entities in Mainland China

Jianwei (Jerry) Fang, Rui Yang, Songyang Wang and Chen (Cissy) Chen of Zhong Lun Law Firm explain a new transparency drive requiring companies, partnerships, and foreign companies’ branch offices in Mainland China to file beneficial ownership information with local authorities. The authors outline the critical aspects of the new rules, including the scope of entities subject to the filing, the identification of beneficial owners, key deadlines, and the importance of timely compliance

Summary

  • Companies, partnerships, and foreign companies’ branch offices in Mainland China are required to file their beneficial ownership information with the local Administration for Market Regulation authorities
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  • A beneficial owner refers to an individual who holds 25% or more equity interests; is entitled to 25% or more capital proceeds or voting rights; exercises de facto control; or is responsible for the day-to-day management of an entity
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  • Newly established entities must complete the required filing within 30 days of establishment; the November 1, 2025 deadline for existing entities to complete their filings has been extended with the new deadline yet to be specified by the competent authorities
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  • Failure to follow the new filing requirement or submission of inaccurate beneficial ownership information may result in correction orders, fines of up to RMB 50,000, and other legal consequences
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  • Businesses are advised to conduct a self-assessment, identify beneficial owners, and confirm the local requirements to fulfill the Filing Requirement and mitigate compliance risks
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Regulation of Beneficial Ownership Information Filing for Entities in Mainland China

On April 29, 2024, the People’s Bank of China (the “PBOC”) and the State Administration for Market Regulation (the “AMR”) jointly released theMeasures for

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