A nonprofit purpose does not mean no beneficial owner or an automatic AML exemption. Understand the legal form, governance and applicable statutory rules.
Start with legal form
An association, foundation and institute are different clients. Verify form, current constitutional documents and governing body, then examine decision-making, appointment powers and personal benefit rights. An ordinary shareholding table may be unsuitable.
AML checks remain necessary: establish beneficial ownership, structure and activities. The organisation’s own registration duties are separate from those of an office providing an AML-regulated service.
Associations and the governance presumption
Section 4(5) of the Beneficial Ownership Register Act presumes decisive influence for natural-person members of the statutory body in corporations other than business corporations. This is a relevant starting point for an association, not a reason to ignore evidenced influence by someone else.
Establish all relevant governing-body members and currency of information. The chair named on a website may be neither the only member nor the current one. Constitutional provisions may explain additional decisive influence.
Special rules for foundations and institutes
For foundations, section 6 always also includes natural persons in specified roles, including founders, governing or supervisory board members or inspectors, and a person whose personal support constitutes the purpose. For institutes and public-benefit companies, the law expressly covers founders, directors and relevant board members.
Where a role is held by a legal entity, the law looks through to its beneficial owners. Do not reduce every case to one chair. Assess special roles alongside general ultimate-ownership and control rules.
Public funding is not an automatic exception
Section 7 identifies entities without beneficial owners and conditions concerning public interest, public financing or control. A grant alone or a public-benefit description is insufficient. Business corporations require the specified complete public ownership.
Verify the exact exception. A technical missing-registration message may fail to recognise every statutory exception. Conversely, an automatic entry does not establish completeness. Compare the beneficial ownership register with relevant registers and documents and record your conclusion.
Practical steps
- Verify legal form and current governance rules.
- Assess general influence and roles under sections 4 and 6.
- Substantiate the conditions of any section 7 exception.
- Compare registration with relevant documents and further sources.
Illustrative scenario
For a private institute, an office verifies its founder, director and relevant board members under the special rule and compares them with the register.
When the situation differs
An association receives a municipal grant, so staff mark it as having no beneficial owner without checking the conditions.
What to document
- Legal form and founding or constitutional documents.
- Current relevant roles and evidence of influence.
- Specific legal basis for an exception or owner determination.
Common pitfalls
- Treating all nonprofits as one category.
- Confusing grants with an automatic exception.
- Accepting automatic entries without checking currency.
Frequently asked questions
Does inability to distribute profit mean no beneficial owner?
The rules also cover control and special roles. They are not limited to profit entitlements.
Is an association’s chair always the only owner?
No. Assess the relevant governing body as a whole and any additional decisive influence.
Put this guidance into practice
Choose a record for the step you are working on. Adapt it to your profession and actual case.
- Legal entity and beneficial owner information · PDF / Word
- Non-business legal entities providing listed services →
Complete client information online
Where to go next
- Beneficial owners: establish first, then verify — Distinguish identifying a beneficial owner, verifying identity and substantiating why the person owns or controls the company.
- Trusts and foreign arrangements: map every relevant role — Establish settlors, trustees, beneficiaries and other persons in structures without ordinary company shares.
Sources and legal references
- Zákon č. 253/2008 Sb. — aktuální znění e-Sbírky ↗
§ 9 odst. 2 písm. b), c), odst. 3 · accessed 2026-10-04 - Zákon č. 37/2021 Sb. — aktuální znění e-Sbírky ↗
§ 4 odst. 5; § 6–7; § 37 · accessed 2026-10-04 - FAÚ: Metodický pokyn č. 3 — zjišťování skutečného majitele ↗
Zjištění a ověření skutečného majitele, 25. 4. 2025 · accessed 2026-10-04
Editorial work and source checks are not independent legal approval of your particular process. Compare the conditions and exceptions with your own circumstances.