Ultimate Beneficiary Owner (UBO) Compliance

Ultimate Beneficiary Owner (UBO) Compliance

UBO of a company is the person who directly or indirectly controls and owns a company. Most recent regulations about ultimate beneficial ownership were implemented in the UAE according to the review of Cabinet Decision No. 58 of 2020. The Regulations are applicable to all entities incorporated in the UAE, whether such entities are located in mainland UAE or in any of the commercial free zones. All Relevant Entities are required to notify their respective registrar or licensing authority of its shareholders and real beneficiaries before the deadline given by respective authorities. The entities fully owned by federal and local governments are exempted from regulations.

The Regulation of procedures related to real beneficiaries, which was implemented on 28 August 2020 require all businesses registered in the UAE (subjected to exceptions) to maintain registers of their direct shareholders and their ultimate beneficial owners to submit those registers to their local regulatory authority through government approved legal ways.

According to the regulations, all relevant entities must maintain registers for the following:

  • Register of its directors and nominee directors.

  • Register containing details of its partners/ shareholders, details including the ownership interests and voting rights held by every individual.

  • Register containing details of its real beneficiaries, details including the reason why they are a real beneficiary and the date on which they became a real beneficiary.

Reasonable measures must be taken to acquire accurate information and keep the registers up-to-date date on a continuing basis and notify respective authorities of any changes to the information provided within 15 days of such change. Information related to its shareholders and real beneficiaries must be submitted to the respective authorities.

Identifying the Real Beneficiaries

Each relevant entity must identify its real beneficiaries being:

1. A natural person who owns or controls at least 25% of the relevant entity’s issued share capital, whether directly or indirectly.

2. A natural person who has the right to appoint or dismiss the majority of the directors/managers of the relevant entity.

3. If no natural person satisfies the criteria above, then any natural person who exercises control over the Relevant Entity through other means will be deemed to be a real beneficiary.

4. If the relevant entity is unable to identify any natural person who meets either of the criteria above, then the real beneficiary shall be the natural person who is responsible for the senior management of the relevant entity.

Accruon consultants will be helpful to you for:

Assessing the impact of the regulation on your business

Accruon consultants will ensure that your company complies with its administrative and statutory responsibilities. We will assist you in filing the declaration and details, as per the instructions.

Complying with your obligations and helping you focus on what you do, managing your operations and growing your business without any worries about the procedures to complete the taxation process.

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We will assign a dedicated and qualified team to your entity, who will assist you in ensuring statutory compliance and providing necessary management reports.