A Beneficial Owner is a natural person who ultimately owns or controls a business entity. For Stripe accounts, this typically includes anyone who owns 25% or more of the company or exercises significant control over it (like a CEO). Identifying beneficial owners is a key requirement of KYC regulations.
FAQs:
- Why do I need to provide the social security number of my business partner?
Regulations require Stripe to verify the identity of all significant owners, not just the person opening the account, to prevent hidden ownership by sanctioned individuals. - What if my business is owned by another company?
You must trace the ownership up through the layers until you identify the actual human beings (natural persons) at the top. - Do non-profits have beneficial owners?
They may not have “owners” in the traditional sense, but they must identify a “controller” (e.g., executive director) responsible for the account.
Related Terms:
- KYC
- UBO (Ultimate Beneficial Owner)
- Company Structure
- Stakeholder