You can most likely be considered an "Active non-financial entity" if you fall in any of the sub-categories below:
Operational company: Your business is operating and producing goods and services. In more legal terms this means that less than 50 percent of your businesse's gross income for the last reporting period was passive, and less than 50 percent of its assets produced or were held for the production of passive income (e.g. rent, licences, dividends or interest).
Business in formation: Your business is not yet fully operating a business and has no prior operating history, but it is investing capital into assets with the intent of operating a business other than that of a Financial Institution.
Holdings: All of the activities of the business substantially consist in holding, wholly or in part, the outstanding stock of —or consist in providing financing and services to — one or more subsidiaries that engage in trades or businesses other than the business of a financial institution. The business does not, however, qualify for this status if the business functions (or holds itself out) as an investment fund, such as a private equity fund, venture capital fund, leveraged buyout fund, or any investment vehicle whose purpose is to acquire or fund companies and then hold interests in those companies as capital assets for investment purposes.
Non-profit: The business is established solely for religious, charitable, scientific, artistic, cultural, sporting or educational purposes.
Business in liquidation: The business was not a financial institution in the past five years and is now in the process of liquidating its assets or is reorganizing with the intent of continuing or recommencing operations in a business other than that of a financial institution.
Companies traded on the stock market: The stock of the business is regularly traded on an established securities market, or the business is a related entity of another entity whose stock is traded on an established securities market.
Public organizations: The business is a governmental entity, an international organization, a central bank, or an entity wholly owned by one or more of these entities.
Treasury Center: The business primarily engages in financing and hedging transactions with or for related entities that are not financial institutions, and does not provide financing or hedging services to any entity that is not a related entity, provided that the group of any such related entities is primarily engaged in a business other than that of a financial institution.
Operational company: Your business is operating and producing goods and services. In more legal terms this means that less than 50 percent of your businesse's gross income for the last reporting period was passive, and less than 50 percent of its assets produced or were held for the production of passive income (e.g. rent, licences, dividends or interest).
Business in formation: Your business is not yet fully operating a business and has no prior operating history, but it is investing capital into assets with the intent of operating a business other than that of a Financial Institution.
Holdings: All of the activities of the business substantially consist in holding, wholly or in part, the outstanding stock of —or consist in providing financing and services to — one or more subsidiaries that engage in trades or businesses other than the business of a financial institution. The business does not, however, qualify for this status if the business functions (or holds itself out) as an investment fund, such as a private equity fund, venture capital fund, leveraged buyout fund, or any investment vehicle whose purpose is to acquire or fund companies and then hold interests in those companies as capital assets for investment purposes.
Non-profit: The business is established solely for religious, charitable, scientific, artistic, cultural, sporting or educational purposes.
Business in liquidation: The business was not a financial institution in the past five years and is now in the process of liquidating its assets or is reorganizing with the intent of continuing or recommencing operations in a business other than that of a financial institution.
Companies traded on the stock market: The stock of the business is regularly traded on an established securities market, or the business is a related entity of another entity whose stock is traded on an established securities market.
Public organizations: The business is a governmental entity, an international organization, a central bank, or an entity wholly owned by one or more of these entities.
Treasury Center: The business primarily engages in financing and hedging transactions with or for related entities that are not financial institutions, and does not provide financing or hedging services to any entity that is not a related entity, provided that the group of any such related entities is primarily engaged in a business other than that of a financial institution.
Important note: We do not provide tax advice and you should contact a professional tax advisor for more detailed questions.
