France UBO Enforcement Tightened Since June 2025

France has significantly tightened enforcement of Ultimate Beneficial Owner (UBO) reporting obligations. A new law that entered into force on 15 June 2025 introduced stricter consequences for companies that fail to maintain accurate beneficial ownership information. Most notably, non-compliance can now lead to automatic deregistration from the Trade and Companies Register (RCS).

The reform has shifted UBO compliance from a regulatory formality to a matter directly linked to a company’s legal existence.

What changed in the enforcement framework?

The reform amended key provisions of the French Monetary and Financial Code and strengthened the powers of commercial court clerks. Previously, authorities could impose financial and criminal penalties for failures in UBO reporting. The updated framework now allows commercial court clerks to initiate deregistration proceedings directly.

When a clerk identifies missing, inaccurate, or incomplete UBO information, the company receives a formal notice. From that moment, it has three months to regularise its position. If it fails to do so, the clerk may proceed with automatic removal from the RCS.

Deregistration has severe implications. It removes the company from the official register and undermines its legal capacity to operate and contract.

How is a UBO defined under French law?

French law defines an Ultimate Beneficial Owner as any natural person who directly or indirectly holds more than 25% of the share capital or voting rights, or who exercises control over the company’s management or decision-making bodies. This includes influence over the general meeting of shareholders.

If no individual meets these criteria, the company must designate its legal representative as the beneficial owner. This fallback mechanism ensures that every company has a declared UBO on record.

What are the ongoing compliance obligations?

All companies registered in France must file UBO information with the register attached to the RCS and keep it up to date. Any change affecting ownership or control must be reported within 30 days.

This obligation remains continuous. Companies must monitor changes in shareholding, voting arrangements, control agreements, or governance structures that could affect UBO identification.

The 2025 reform did not change the reporting deadline. Instead, it strengthened enforcement and increased consequences for failure to comply.

What happens in case of non-compliance?

The enforcement mechanism now follows a structured timeline. Once a formal notice is issued, the company has three months to correct the situation. If it does not act within that period, deregistration proceedings may begin.

In addition to this administrative consequence, the law maintains a two-tier penalty system.

Individuals, including legal representatives, face up to six months’ imprisonment and fines of up to €7,500 if they fail to declare or intentionally misreport UBO information. Companies themselves may incur fines of up to €37,500.

In practical terms, inaccurate, outdated, or incomplete filings now carry both corporate and personal exposure.

Why does this matter now?

UBO reporting has long formed part of France’s anti-money-laundering framework. However, since June 2025, enforcement has become more direct and more severe. The risk is no longer limited to financial penalties. Companies now face the possibility of being struck off the register if they ignore formal notices.

For corporate groups, this increases exposure. Centralised ownership structures, indirect holdings, and complex control arrangements require careful analysis. Any restructuring, share transfer, or governance adjustment may trigger an update obligation.

Compliance teams should therefore treat UBO monitoring as a core governance task rather than an administrative afterthought.

What’s next?

Managing UBO compliance in France now requires continuous monitoring, accurate ownership mapping, and strict deadline control. Since deregistration is now a real enforcement outcome, companies must ensure that beneficial ownership data remains complete and up to date at all times. For more insights into corporate transparency obligations across jurisdictions, explore our related resources on Rethinking Entity Management for Multinationals.

Klea supports businesses with centralised governance tools, automated compliance tracking, and secure documentation workflows across jurisdictions. Companies looking to manage French UBO obligations efficiently can:

• Request a Demo – See Klea in action for your organisation.
• Start a Trial – Experience firsthand how automation reduces workload and improves efficiency.
• Talk to Our Experts – Get tailored recommendations based on your entity management needs.

Company secretarial software plays a vital role in maintaining structured governance and consistent compliance. With Klea, organisations can keep regulatory change manageable, transparent, and under control.

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