UPDATE: ULTIMATE BENEFICIAL OWNERS (UBO) REGISTRATION – IS YOUR COMPANY REGISTERED?

The UAE has introduced additional compliance regulations regarding Ultimate Beneficial Owners (UBO), which require certain actions from all companies registered in the UAE. 

Cabinet Decision No. 58 of 2020 the UAE updated their corporate compliance regulations regarding real beneficiaries for the companies in the UAE (excluding those registered in DIFC and ADGM), thereby further strengthening the applicable compliance regime in the UAE.     

This new regulation requires companies to establish and maintain a register of shareholders, UBOs and nominee directors. Companies are required to make a submission of such register to the competent licensing authorities by the licensing authority due date. 

Please note this is a mandatory requirement for all companies.

WHO DOES IT APPLY TO? 

The Resolution applies to all UAE companies.

WHO IS THE “REAL BENEFICIARY”? 

Under the Resolution, the Real Beneficiary is: 

• Level 1: A natural person (“Owner/Controller”) who has the ultimate ownership/control/right to vote over a UAE business (“Company”), directly or indirectly (through a chain of ownership/control) concerning at least 25% of the Company; or A natural person who has the right to appoint/dismiss the majority of the directors of the Company.
• Level 2: In absence of the above, a natural person who manages or administers the Company;.
• Level 3: In absence of the above, a natural or a legal person who is the senior manager of the Company.

WHO IS A BOARD NOMINAL MEMBER? 

The member who acts in accordance with the guidelines, instructions or will of another person.   

WHAT DO YOU NEED TO DO NEXT? 

You will need to prepare and lodge the UBO register as per your regulatory authority’s requirements by the due date.

Note once your licensing authority notifies you on the process for submitting their set UBO reporting details, you will need to have these details ready and will be able to submit to your licensing authority. 

Failure to submit the UBO declaration as per the correct format, correctly and on time will result in fines being incurred. 

If you require assistance with the preparation and submission of your company UBO contact our corporate structuring team on [email protected] or call +971 4 878 6240.