The United Arab Emirates issued Cabinet Resolution No. 58 of 2020 on the Regulation of the Procedures of the Real Beneficiary.
Applicability
The resolution applies to all companies in the UAE, except companies incorporated in the financial free zones like ADGM and DIFC and companies owned by the Federal Government and their subsidiaries.
What companies must do
Companies need to maintain at their office premises:
• A shareholder register.
• A register of beneficial owners.
• A register of nominee directors.
Companies must submit the UBO declaration with licensing authorities
Ultimate Beneficiary or Real Beneficiary
For the Register of Real Beneficiary, a UBO can be defined as,
•Whoever owns or controls, through direct or indirect ownership, at least 25percent of the entity’s shares or whoever has a voting right of at least 25 percent of the shares.
•If no UBO is identified in accordance with the above, or there is any doubt that any natural person identified as a UBO is the true UBO, the natural person who exercises control over the entity through other means will be considered as the UBO.
•If none of the conditions above are met, then a natural person who is responsible for the senior management of the entity will be considered as the UBO
How to Maintain the Register?
A UBO register must contains the following information without any limitation,
•Full name, nationality and date and place of birth, place of residence and address.
•Passport or ID number and date of issuance and expiry.
•Reason why the person is classified as UBO and date on which the person became a UBO or ceased to be a UBO.
Companies are required to keep the register updated and notify authority of any change or amendment to the information provided within 15 days of such change or amendment.
Non-Compliance
If companies are found to be non-compliant with the Regulations, the UAE Ministry of Economy may impose certain administrative sanctions.
How can we help?
•Prepare registers of the UBOs, Partners / Shareholders and Nominee Directors / Managers (if applicable), in accordance with the Resolution.
•Arrange filing with the authorities.
•Inform the relevant authority of any changes or amendments to the information provided.
