Beneficial owner (Patiesais labuma guvējs or PLG) is a natural person, the owner of a legal person or a person who controls the association and is at least a natural person who, in the form of direct or indirect participation, holds more than 25 per cent of the capital shares or voting shares of the legal person or who controls it directly or indirectly.

The following shall be indicated as the association Beneficial owner:

1. name;
2. surname;
3. the personal identity number (if any - date of birth, month, year, number and date of issue of the identity document, country and authority which issued the document);
4. nationality;
5. the country of residence;
6. way of exercising control over the association:
   1. through the status of the legal person (if the Beneficial owner is a member of the association or a member of the executive body):
      1. as a member;
      2. as a representative of the executive or administrative body;
   2. as a separate person controlling (if the true beneficiary controls the association indirectly):
      1. on the basis of a contract of authorisation;
      2. on the basis of ownership (for example, if the association's Beneficial owner is the owner of a member, the legal person);
      3. on the basis of the transaction relationship;
   3. another (free text field with the option of entering an undefined type);
7. information on the person through whom the control is carried out (indicated if any of the methods referred to in points 6.2 or 6.3 in which the control is carried out):
   1. the name, surname, personal identity number of the natural person (if the person does not have a personal identity number - date of birth, month and year);
   2. the name, registration number and legal address of the legal person (may also be a foreign legal person).

It should be noted that there is an individual situation in each association. If members of the association exercise their rights only as members of the association in accordance with the rights and obligations laid down in the Law on Associations and Foundations, such member shall not be regarded as the true beneficiary. A case in which members of the association do not exercise their rights solely as members of the association could be, for example, if the members of the association are acting for a purpose other than that laid down in the articles of association. If their members exercise their rights only as members of those legal entities and the purpose of the association is to target the public benefit or the purpose of the association is directed at the interests of the members, but the number of members is large, it will not be possible to clarify the Beneficial owner unless those legal entities are actually, according to the definition of the Beneficial owner, controlled by any particular individual. Associations in which members of the association are active will exercise their rights as members of the association, mainly the Beneficial owner will not be able to clarify. At the same time, there may also be situations where associations are actually controlled by a particular natural person, for example, in cases where members of the association actually no longer exercise their rights of members and, in fact, only members of the Board of Governors of the Society are active.

In the light of this, in the case of associations where their members exercise their rights only as members of those legal entities, it will not be possible to identify the true beneficiaries, unless those legal entities actually control certain individuals, such as the members of the executive body, in accordance with the definition of the Beneficial owner. For example, all decisions are taken by the association and all transactions are carried out in the interests and benefits of one (or more) specific individuals, rather than taking into account the purpose of the association and the interests of its members. These persons may be members of the association or members of the executive bodies of the association (direct control), as well as persons who are neither founding members of the association nor members of the executive bodies (indirect control). Control may also be presented, even if it is not actually carried out, but, for example, one person uses and benefits from the financial assets of the association.

It must be indicated that it is not possible to provide an explanation of all situations, since each case is individual and the Board of Governors of the Society needs to know (to be clarified) whether a natural person has real control of the association.

Where the association has used all possible means of clarification and has concluded that it is impossible to identify any natural person, the Beneficial owner, as well as doubts that the association has a Beneficial owner, it shall be confirmed in the application, stating the reasons.

The Enterprise Register shall have the right to request a document confirming the relevance of the information identifiedby the Beneficial owner (a notarially certified copy of the identity document, a statement from the foreign population register or other documents comparable to those documents), as well as a documentary justification for the control carried out by the Beneficial owner and a document supporting proof that it is not possible to clarify the Beneficial owner!