The Corporate Transparency Act (CTA) came into effect on 1 January 2024, and it is designed to capture more information about the ownership and control of U.S. companies and foreign entities registered to do business in the U.S., by requiring them to report Beneficial Ownership Information (BOI).

The Managers/Directors of the reporting companies are responsible for filing the BOI reporting with the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). FinCEN allows the reporting company to outsource the reporting requirement to a third party.

The CTA requires newly formed reporting companies (formed in 2024) to submit their BOI within 90 days of formation. For reporting companies formed prior to 1 January 2024, the reporting deadline to submit beneficial ownership information is 1 January 2025.

Failure to comply with the requirements risks incurring significant penalties, including a $500 daily civil penalty and up to $10,000 criminal fine and/or up to 2 years imprisonment.

If your company falls in the above category, please contact Globalserve Consultants LTD for assistance.