WHAT THE BOLIVIAN REGULATIONS SAY ABOUT BENEFICIAL OWNERS
Regulatory Resolution No. 102500000005 stipulates that taxpaying entities, specifically legal persons engaged in economic activities in Bolivia, must provide the SIN with accurate information regarding their beneficial owners. This requirement responds to the State’s need to identify the natural persons who ultimately own or control a company or legal structure, as part of broader efforts to prevent and combat money laundering, tax evasion, and other illicit activities.
WHO QUALIFIES AS A BENEFICIAL OWNER UNDER BOLIVIAN LAW
According to Supreme Decree No. 4904, dated April 5, 2023, a beneficial owner is defined as the natural person(s) who:
- Directly or indirectly hold 20% or more of the shareholding or ownership interest;
- In the absence of the above, exercise control over the legal entity by other means;
- If neither of the above criteria applies, the highest-ranking executive within the company is deemed the beneficial owner.
This progressive approach ensures that every legal structure has at least one duly identified beneficial owner.
DEADLINES FOR BENEFICIAL OWNERS REGISTRATION IN BOLIVIA
STEPS A COMPANY MUST TAKE TO REGISTER BENEFICIAL OWNERS
The registration process begins with an internal review by the company’s shareholders or administrators, who must:
- Identify beneficial owners based on the criteria established in Supreme Decree No. 4904;
- Collect documentation supporting the beneficial owner’s information, including personal data and their control or ownership link;
- Submit and regularly update this information through the system provided by the SIN.
REQUIRED DOCUMENTS FOR BENEFICIAL OWNERS REGISTRATION IN BOLIVIA
The required documentation must establish the natural person’s identity as a beneficial owner and their connection to the corporate structure. This includes, among others, copies of identity documents, corporate records, and legal powers demonstrating control.
LEGAL FRAMEWORK FOR BENEFICIAL OWNERS REGISTRATION IN BOLIVIA
The legal basis for the Beneficial Owners Registry includes:
- Bolivian Tax Code (Law No. 2492), Article 70, which requires taxpayers to register, provide data, and keep their information updated;
- Supreme Decree No. 4904, which governs the identification of beneficial owners and defines the role of relevant institutions.
PENALTIES FOR NON-COMPLIANCE WITH BENEFICIAL OWNERS REGISTRATION IN BOLIVIA
According to Resolution No. 10-0033-16 dated November 27, 2016, failure to update the information provided in the Taxpayer Registry constitutes a formal breach punishable by a fine of 300 UFVs for legal entities and 150 UFVs for natural persons. Additionally, further investigations may be initiated under anti-money laundering regulations.
CONCLUSIONS ON BENEFICIAL OWNERS REGISTRATION
Registering beneficial owners is not just a formal obligation but a strategic measure aligned with international corporate transparency standards. Companies operating in Bolivia must approach this requirement with diligence, seek qualified legal counsel, and mitigate unnecessary legal and financial risks.
For legal advice on how to comply with Bolivia’s Beneficial Owners Registry, contact our team of legal experts. We are here to assist you.
Frequently Asked Questions (FAQs)
What is the purpose of the Beneficial Owners Registry in Bolivia?
Its main objective is to enhance fiscal control and corporate transparency by identifying the natural persons who ultimately own or control legal entities.
Who is obligated to register beneficial owners in Bolivia?
All legal entities conducting economic activities in Bolivia must register their beneficial owners with the SIN.
What happens if a company fails to register its beneficial owners?
Failure to register or update beneficial owner information can result in fines and may trigger additional investigations related to money laundering.
Is the registration of beneficial owners a one-time process?
No. Companies must keep the information updated and report any changes through the SIN’s designated system.
Can a legal representative be considered a beneficial owner?
Only if no individual meets the ownership or control criteria, the company’s highest-ranking executive may be considered the beneficial owner.
The content of this article does not reflect the technical opinion of Rigoberto Paredes & Associates and should not be considered a substitute for legal advice. The information presented herein corresponds to the date of publication and may be outdated at the time of reading. Rigoberto Paredes & Associates assumes no responsibility for keeping the information in this article up to date, as legal regulations may change over time.
