New UBO regulation in UAE obliges licensees to file Beneficial Ownership to the authorities – Key Points
19 October 2020
On 24 August 2020, the UAE Cabinet published Cabinet Decision No. 58/2020 on the Regulation of Procedures Related to Real Beneficiaries (the “New Cabinet Decision”). This Decision requires companies licensed or registered in the UAE (except partly or wholly owned Local or Federal government and Financial Free Zones) to create, maintain and submit a Register of Beneficial Owner (RBO) and the Register of Partners or Shareholders to the relevant Registrar or licensing authority.
Basis of Identification of Real Beneficiaries for RBO:
- Natural persons who ultimately own or control or have the right to vote over at least a 25% shareholding of the company or who have the right to appoint or dismiss the majority of the directors/managers.
- If no Real Beneficiary fits the above criteria, or there is any doubt over who has final controlling say, the physical person who exercises control over the Entity through other means shall be the Real Beneficiary.
- If no physical person is determined, the Real Beneficiary shall be the physical person who holds the position of the person in charge of Senior Management
- Register of Members/Partners & Register of BO should be maintained & furnished with the relevant authority within (60) sixty days of the promulgation date of this Decision for an existing company or date of licensing or registration of the Legal Person.
- Notice for incorrect data: notice to be sent for incorrect data and after 15 days of notice, the correct details or seeking missing data for the correct BO to be entered in the Register.
- Notice for any changes/update: Legal person shall within (15) fifteen days of the date of making the amendment or modification, notify the Registrar thereof.
- However, each Licensing Authority needs to issue circular for submitting the Registers and its due date.
Non-compliance: Any case of a violation of the provisions of this Decision can result in the Minister of Economy or the Licensing Authority imposing one or more sanctions.
How can BDO help?
We can help you with below services:
- Initial Assessment on identifying Shareholders & beneficial owner
- Preparing & assisting in Authority submission