Who is a beneficiary? This is the beneficiary: the owner of the company, the CEO, the person who received insurance or inherited. In other words, a person who in one way or another benefits from the position, situation, assets.
How to become one? To be a beneficiary, you don't need to do anything special. Another question is when it comes to the beneficial owner of a legal entity. This is about owning a block of shares in the company, rights and responsibilities.
The article explains:
Who is a beneficiary in simple terms
Beneficiary participation in various areas
Types of beneficiaries
How to become a beneficial owner of a legal entity
Beneficiary Rights
Disclosure of information about beneficiaries
Companies required to keep records of beneficiaries
Frequently asked questions about beneficiaries
5 Scenarios for Using Neural Networks to Increase Website Profits by 40%
Download for free
Who is a beneficiary in simple terms
Professional terms are typical for armenia email list any sphere of activity. Financiers are no exception, and often in their speech you can hear words whose meaning is not entirely clear to most people around them. One of such terms is beneficiary.
Who is it and when is it used? It is generally used in cases where income is being received and refers to the person or persons receiving the profit. In French, "bénéfice" means "profit", which is why beneficiaries are those people who receive some benefit for themselves. So, generally speaking, this could include all those who receive income from sales, dividends, inheritance, etc.
Who is a beneficiary?
Source: shutterstock.com
This term is abundant in the lexicon of businessmen, lawyers and bankers. The meaning of this word is constant, but in each specific case it must be clarified, since there are several types of beneficiaries.
This term has no legal definition. However, there is a "beneficial owner" and a "beneficiary". These two concepts are defined in the law "On combating the legalization (laundering) of proceeds from crime and the financing of terrorism". They are not synonyms, both of these persons receive profit from the organization, but the beneficial owner is the owner of at least 25% of the total share.
For ease of understanding, let's look at a small example: when buying one share of Gazprom or any other company, a person becomes a beneficiary, and if the number of shares in ownership is 30% or more, then this is already a beneficial owner. At the same time, who the beneficiary of the company is, is not stated in the document.
Federal Law 115 (Article 3, paragraph 13) states that the beneficial owner of a client – the beneficiary – is a person who either owns the business or exercises full control over it.