Switzerland introduces a register of beneficial owners: What Swiss companies need to know?
In December 2023, the Swiss Parliament adopted a major reform aimed at increasing transparency among legal entities. This revision of the law on legal persons reflects Switzerland’s commitment to aligning with international standards, particularly those of the Financial Action Task Force (FATF). One of the key measures of this reform is the creation of a central register of beneficial owners. Here’s what it means for Swiss companies.
What is a beneficial owner?
A beneficial owner is a natural person who directly or indirectly owns or controls more than 25% of a company, or who otherwise exercises effective control over it. The goal is to identify the real individuals behind legal structures, even when ownership chains are complex.
A central register, not public but accessible to authorities
The register will be maintained by a federal authority, most likely the Federal Office of Justice (FOJ). It will not be accessible to the public, but competent Swiss authorities (financial intermediaries, fiduciaries, tax authorities, public prosecutors, MROS, etc.) will have access to it.
Swiss company obligations
Companies will be required to:
Identify their beneficial owners,
Submit this information to the register via an intermediary (e.g., a fiduciary/corporate services provider or lawyer),
Update the information in case of changes (e.g., transfer of shares, new control structure),
Keep appropriate documentation of the checks carried out.
Sanctions for non-compliance
Failure to comply with these obligations can result in fines of up to CHF 500,000. Company directors and board members may be held personally liable in the event of serious breaches.
When does this obligation come into force?
The implementation of the Swiss register of beneficial owners is planned for 2026, with the implementing ordinances still in preparation. Existing companies will be given a transitional period to comply with the new requirements.
How can we help?
As a corporate services provider, My Swiss Company SA supports its clients in identifying beneficial owners, setting up internal verification procedures, and preparing for the submission of data to the register once it becomes operational.
Feel free to contact us to anticipate these new obligations and ensure full compliance.