Ultimate Beneficial Ownership (UBO)
Ultimate Beneficial Ownership in Dubai
Deadline to submit Ultimate Beneficial Ownership details – 30th June 2021
Reference to the Cabinet decision No. (58 of 2020) regulating the Beneficial Owner procedures, UAE federal regulation requires institutions to capture and identify the details of the ultimate individual beneficial Owner (s) (UBOs) and submit the same to the licensing authority before the due date which is falling due on 30th June 2021.
Different deadline are also prescribed by each licensing authorities
Brief on the New UAE Cabinet Decision No. 58 of 2020 on Regulating the Beneficial Owners Procedures
On 24 August 2020, the UAE Cabinet published Cabinet Decision No. 58/2020 on Regulating the Beneficial Owner Procedures.
Applicability– The registration of beneficial owner data is now required for All companies registered in the UAE, including the free zones.
Except
- Public Shareholding companies
- Companies owned 100% by federal or local government agencies or companies affiliated with companies owned 100% by the state as well.
Requirements
- Licensees in the UAE are required to maintain a Register of Partners/Shareholders and a Register of Real Beneficial Owners at their registered office.
- Submit the information stated in this decision to the competent licensing authorities.
Ultimate Beneficial Owner
The natural person who ultimately owns or controls the Legal Person, whether directly or through a chain of ownership or control or any other indirect means, and also the natural person on whose behalf the transactions are being conducted or who exercises ultimate control over a legal person and finally owns or controls direct or indirect equity shares or shares of 25% or more.
Deadline by different Licensing Authorities:
Dubai DED – 15th June 2021
JAFZA - 5th June 2021
UAQ FTA - 31st May 2021
NON COMPLIANCE
Penalty for violating real beneficiary procedures – Written warning followed by a fine of AED 100,000, in the event of repeated violation which could lead to suspension of license for at least a year,
Additional points
- The Legal Person must update and record any change to the Register within (15) fifteen days of becoming aware of such change.
- These companies must also file with the Registrar the details of an individual in the UAE who is authorized to disclose the information to the Registrar including such individual’s address, contact information and ID card or travel document.
- In the case of companies which are under dissolution or liquidation, the appointed liquidator has an obligation to provider a true copy of the updated UBO register to the Registrar within 30 days of the liquidator’s appointment.
- All companies are required to ensure that the registers are updated to include accurate information of any changes to the UBOs and shareholders or partners and this should be maintained on a continuing basis.
- Companies licensed in the UAE which are ultimately listed on a market that provides for robust transparency rules on Real Beneficial Owners are exempt from certain of the requirements in the New Cabinet Decision.
What Expert CA Can do for you.
- Analyzing the company shareholding structure and identification of UBO.
- Prepare the register as required by the law.
- Submit UBO data with relevant licensing authority
