This article provides a detailed analysis of enterprises' obligation to declare beneficial owners, clarifies the fine levels ranging from VND 70,000,000 to VND 100,000,000 under Decree 288/2026/ND-CP, and offers recommendations for enterprises.
Recently, the information "Enterprises failing to update beneficial owner information before October 31 will be subject to administrative penalties ranging from VND 70,000,000 to VND 100,000,000" has become prevalent on business forums, causing confusion among many enterprise managers.
To assist enterprises in accurately understanding current legal regulations and proactively mitigating legal risks, OPLAW Legal Consulting Company provides a detailed analysis of this obligation based on legal provisions.
Pursuant to the Law amending and supplementing a number of articles of the Law on Enterprises (Law No. 76/2025/QH15):
A beneficial owner of an enterprise is an individual who actually owns capital contributions or shares, or has actual control over the enterprise's governance decisions.
Obligation of the enterprise: The enterprise is responsible for collecting and retaining beneficial owner information at its head office, and for declaring and providing it to the business registration authority and competent state agencies for state management and anti-money laundering purposes.
Pursuant to Clause 6, Article 44 of Decree 288/2026/ND-CP dated July 21, 2026, of the Government, stipulating administrative penalties in the field of planning and investment:
A fine ranging from VND 70,000,000 to VND 100,000,000 shall be imposed for the act of: Failing to supplement information about the enterprise's beneficial owner (if any), information to identify the enterprise's beneficial owner (if any) at the time the enterprise carries out the nearest business registration content change procedure or business registration content change notification for enterprises established before July 01, 2025.
Legal analysis: The violation is only constituted and penalized when the enterprise carries out a business registration content change procedure or notifies a change in business registration content but fails to submit/supplement beneficial owner information. This regulation does not apply automatic penalties to all enterprises that have not submitted separate reports before October 31.
Pursuant to the transitional provisions in Article 3 of Law No. 76/2025/QH15 and guiding documents, the declaration obligation is specifically determined as follows:
Enterprises in this group have fulfilled their obligations. The Business Registration Application Form applicable from the aforementioned time has already integrated the content for declaring beneficial owner information when carrying out establishment procedures.
In cases where a business registration content change procedure has been carried out from July 01, 2025, to the present: Upon receiving the change dossier, the business registration authority has requested the submission of the Beneficial Owner List. Enterprises need to review their internal archived records to confirm that the information has been completed.
In cases where no business registration content change procedure has been carried out from July 01, 2025, to the present: The law does not require enterprises to carry out a separate procedure to submit beneficial owner information before October 31. This supplementary obligation will be carried out concurrently at the time the enterprise needs to change its business registration content most recently.
Although not mandatory to submit separate dossiers, OPLAW recommends that enterprises proactively implement the following risk management measures:
Establish and maintain records at the head office: Collect full legal information, documents proving the identity and ownership ratio/controlling rights of the beneficial owner; prepare a List of Beneficial Owners for storage at the head office as prescribed.
Review business registration data: Check the accuracy and consistency of information on the Enterprise Registration Certificate, Citizen ID card information of the legal representative, and members/shareholders.
Declare correctly when changes occur: In case of a business registration content change procedure (such as changes in capital, business lines, address, legal representative, etc.), the enterprise must complete the beneficial owner declaration form accompanying the dossier to avoid the risk of dossier rejection or administrative penalties.
This article provides a detailed analysis of enterprises' obligation to declare beneficial owners, clarifies the fine levels ranging from VND 70,000,000 to VND 100,000,000 under Decree 288/2026/ND-CP, and offers recommendations for enterprises.
This article provides a detailed analysis of enterprises' obligation to declare beneficial owners, clarifies the fine levels ranging from VND 70,000,000 to VND 100,000,000 under Decree 288/2026/ND-CP, and offers recommendations for enterprises.
This article provides a detailed analysis of enterprises' obligation to declare beneficial owners, clarifies the fine levels ranging from VND 70,000,000 to VND 100,000,000 under Decree 288/2026/ND-CP, and offers recommendations for enterprises.
This article provides a detailed analysis of enterprises' obligation to declare beneficial owners, clarifies the fine levels ranging from VND 70,000,000 to VND 100,000,000 under Decree 288/2026/ND-CP, and offers recommendations for enterprises.
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