The US Beneficial Ownership Information (BOI) Report is a crucial development, particularly relevant for those in the Romanian business sector with connections to the United States. This report has become a focal point in corporate compliance and transparency, and this is something not only business owners but also lobbyists and advocates should be aware of.
From January 1st, 2024, it’s mandatory for US-based companies, under specified conditions, to submit the BOI Report. The purpose of this document is to transparently reveal the real owners and key decision-makers of these companies.
This report, officially known as the Beneficial Owner Information report, is a requisite filing for every US-based company with the Financial Crimes Enforcement Network (FinCEN), an agency under the U.S. Department of the Treasury. It aims to disclose the identities of beneficial owners – those who ultimately own or exert control over the company – along with company applicants and the individuals who first registered the entity in the US.
Filing a BOI report requires companies to detail information about their structure, their beneficial owners, those who ultimately hold ownership or exert control, the company applicants, and the individuals who established the company in the US.
Under this legislation, a ‘beneficial owner’ is defined as any individual who:
- Holds significant control over the company, or
- Possesses or controls a minimum of 25% ownership in the company.
Individuals capable of making pivotal decisions for the company are considered to hold significant control.
While there are certain exemptions, the introduction of this legislation marks a critical step by the US in its efforts to combat financial crimes like money laundering and tax evasion.
For those uncertain about the applicability of the BOI Report to their situation, consulting firms that specialize in the BOI Report process is highly recommended. They provide expert advice and insights into navigating this new regulatory landscape.
We recommend working with Corporate Mile, an American-based legal company which helps entrepreneurs clarify all aspects of their obligation to fill out a BOI Report or not if part of the exemptions to BOI filling. For all the questions regarding BOI and its impact on your business, if you have set up a company in the US, you can contact them directly or consult any other similar reliable company.
