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Ultimate Beneficial Ownership in Dubai

According to Cabinet Decision No. (58 of 2020), UAE federal regulations require institutions to identify and submit the details of their ultimate beneficial owners (UBOs) to the licensing authority by 30th June 2021. Additional deadlines may be set by individual licensing authorities.

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Brief on the New UAE Cabinet Decision No. 58 of 2020 on Regulating the Beneficial Owners Procedures

  • Date of Publication: On 24 August 2020, the UAE Cabinet issued Cabinet Decision No. 58/2020 regarding Beneficial Owner Procedures.

  • Applicability:

    • Registration of beneficial owner data is mandatory for all companies registered in the UAE, including those in free zones.
    • Exemptions:
      • Public shareholding companies.
      • Companies wholly owned (100%) by federal or local government agencies or companies affiliated with state-owned entities.

  • Requirements:

    • Licensees in the UAE must maintain a Register of Partners/Shareholders and a Register of Real Beneficial Owners at their registered office.
    • Submit the required information to the relevant licensing authorities.

Ultimate Beneficial Owner

A beneficial owner is the natural person who ultimately owns or controls a legal entity, either directly, through a chain of ownership, or by other indirect means. This includes the individual on whose behalf transactions are conducted, as well as the person who has ultimate control over the entity and holds 25% or more of its equity shares, either directly or indirectly.

Deadline by different Licensing Authorities:

Dubai DED- 15th June 2021
JAFZA - 5th June 2021
UAQ FTA - 31st May 2021

Non Compliance

Violations of the beneficial ownership procedures can result in a written warning, followed by a fine of AED 100,000 for repeated offenses. This may also lead to a license suspension for a minimum of one year.

Additional Points:

  • The legal entity must update and record any changes to the Register within fifteen (15) days of becoming aware of such changes.
  • Companies are required to provide the Registrar with details of a designated individual in the UAE who is authorized to disclose information, including that person’s address, contact details, and ID card or travel document.
  • For companies in the process of dissolution or liquidation, the appointed liquidator must submit a true copy of the updated Ultimate Beneficial Owner (UBO) register to the Registrar within 30 days of their appointment.
  • All companies must ensure that their registers are continually updated to reflect accurate information regarding any changes to UBOs, shareholders, or partners.
  • Companies licensed in the UAE that are listed on markets with strong transparency rules regarding Real Beneficial Owners are exempt from certain requirements outlined in the new Cabinet Decision.

What Litrix Can Do for You

  • Analyze the company’s shareholding structure and identify the Ultimate Beneficial Owner (UBO).
  • Prepare the UBO register as required by law.
  • Submit UBO data to the relevant licensing authority.

If You Are Interested?

Contact us today for a consultation, and let’s get your business up and running in just a few days. Together, we can turn your vision into reality!

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