UBO Analysis

Identify Ultimate Beneficial Owners through complex corporate structures

What Is UBO Analysis?

Ultimate Beneficial Owner (UBO) analysis identifies the natural persons who ultimately own or control a business entity. This is critical for AML/CFT compliance, as regulations require verification of individuals with ≥25% ownership or significant control.

The Challenge

UBO identification is complex because:

  • Companies often own other companies (multi-layer structures)
  • Circular ownership patterns exist (A owns B, B owns A)
  • Cross-shareholdings create indirect ownership paths
  • Ownership percentages must be aggregated across multiple paths
  • Manual tracing is time-consuming and error-prone

Our Solution

Quickkyb's automated UBO analysis uses advanced algorithms to:

  • Trace Ownership Layers: Automatically investigate corporate shareholders layer by layer
  • Detect Circular Ownership: Handle A→B→A ownership loops using matrix inversion
  • Calculate Indirect Ownership: Aggregate ownership through multiple paths
  • Identify UBOs: Flag all individuals meeting the ≥25% threshold
  • Visualize Structures: Generate clear ownership charts and reports

How It Works

Step 1: Initial Entity Verification

  • Search company in Hong Kong Companies Registry (ICRIS)
  • Retrieve core documents: NAR1, NNC1, COI, AOA
  • Extract shareholder information using AI
  • Identify corporate vs individual shareholders

Step 2: Multi-Layer Investigation

For each corporate shareholder:

  • Present investigation option with cost estimate
  • Upon approval, create new Entity Search for that company
  • Retrieve and extract documents
  • Repeat until no more corporate shareholders

Step 3: UBO Calculation

Our proprietary algorithm calculates ownership using:

  • Direct Ownership: Individual's direct shareholding percentage
  • Indirect Ownership: Ownership through corporate entities
  • Matrix Inversion: Handles circular ownership patterns
  • Path Aggregation: Sums ownership across multiple paths

Step 4: UBO Identification

Identify all individuals who are UBOs based on:

  • Ownership ≥25% (direct + indirect)
  • Significant control or influence
  • Senior management roles

Circular Ownership Detection

Our system handles complex ownership structures including:

  • Simple Circles: Company A owns Company B, Company B owns Company A
  • Cross-Shareholdings: A→B→C→A ownership chains
  • Self-Ownership: Entities indirectly owning themselves
  • Multiple Paths: Same individual reached through different routes

Using matrix inversion mathematics, we calculate the true economic ownership even in circular structures.

Ownership Visualization

Our reports include:

  • Ownership Tree: Hierarchical view of corporate structure
  • UBO Summary: List of all identified UBOs with ownership percentages
  • Detailed Breakdown: How each UBO's ownership was calculated
  • Circular Chains: Documentation of any circular ownership detected

Compliance Reporting

Generate compliance-ready reports including:

  • UBO register with all required information
  • Ownership percentage calculations with methodology
  • Document references for all data points
  • Risk assessment for each UBO
  • Audit trail of investigation steps

Example: How Multi-Layer Search Works

Scenario: Investigating Company X

  1. Layer 1: Company X has shareholders:
    • Individual A (30%) → UBO identified
    • Company Y (70%) → Requires investigation
  2. Layer 2: User approves investigation of Company Y. Company Y has shareholders:
    • Individual A (20%) → Now 30% + (70% × 20%) = 44%
    • Individual B (40%) → 70% × 40% = 28% → UBO identified
    • Company Z (40%) → Requires investigation
  3. Layer 3: User approves investigation of Company Z. Company Z has shareholders:
    • Individual A (50%) → Additional indirect ownership
    • Company X (50%) → Circular ownership detected!

Final Result: Using matrix inversion, we calculate precise ownership percentages accounting for the circular ownership.

Benefits

  • Automation: No more manual spreadsheet calculations
  • Accuracy: Mathematically precise ownership calculation
  • Efficiency: Complete UBO identification in minutes
  • Transparency: Clear audit trail and methodology
  • Compliance: Meet Hong Kong and international regulatory requirements

Pricing

  • Base Entity Search: HKD 100 per company
  • Corporate Shareholder Investigation: HKD 100 per company
  • UBO Analysis: Included in all entity searches
  • UBO KYC Verification: HKD 150 per individual

Get Started

Ready to automate your UBO analysis? Start your first search or contact us for a demo.