The Beneficial owner (Patiesais labuma guvējs or PLG) means a natural person, a foreign merchant or organisation (hereinafter - foreign entity) who has opened a representation in Latvia, an owner or person who controls a foreign entity and is at least a natural person who, in the form of direct or indirect participation, owns more than 25 per cent of the capital shares/voting rights of a foreign entity or which the foreign entity shall be controlled directly or indirectly.

For the foreign entity that has opened a representation in Latvia, the Beneficial owner shall indicate:

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 a foreign entity that will open a representation in Latvia:
   1. as a separate person controlling (if the true beneficiary is an indirect owner or indirectly controls a foreign merchant or organisation):
      1. on the basis of a contract of authorisation;
      2. on the basis of ownership (e.g. if the Beneficial owner is the owner of a foreign merchant or organisation);
      3. through the legal arrangement as a founder;
      4. through the legal arrangement as a principal;
      5. through the legal arrangement as a manager;
      6. on the basis of the transaction relationship;
   2. another type of control (a free text field with the option of entering an undefined type);
7. information on the person through whom 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 registered office of the legal person.

The application for registration must contain mandatory information about the Beneficial owner.

Where a foreign agency has used all possible means of clarification and has concluded that it is not possible for a foreign merchant or organisation to identify any natural person, the Beneficial owner, as well as doubts that the foreign merchant or organisation of the mission has the true beneficiary, it shall be certified in the application, stating the reasons.

The Enterprise Register shall have the right to request a documentary justification for the control carried out by the Beneficial owner, as well as a document confirming the relevance of the information identified by the Beneficial owner (a notarised copy of the identity document, a statement from the foreign population register or other documents comparable to those documents), and a document supporting a statement that the Beneficial owner cannot be ascertained!