Ultimate Beneficiary Owner
The UAE has introduced a new Cabinet Resolution no (58) of 2020 concerning regulation of the real beneficiary procedures (“UBO Regulations”). The UBO Regulations came into force on 28 August 2020.
The scope of the Regulations covers all corporate entities that are licensed or registered in the UAE (including in any commercial free zones) (an “Entity”). Those entities are not fall under the law which wholly owned government entities (and their subsidiaries) and Entities that are established within the UAE and financial free zones such as, DIFC & ADGM. The new UBO Regulations establish a framework for reporting and registering beneficial interests, ultimate beneficial owners (“UBO”) and shadow directors.
Entities that are caught within the scope of the New Regulations need to take necessary action in order to report UBO register to Regulatory Authority to ensure that they comply with the New Regulations as key compliance deadlines have already passed.
Real Beneficiary
A real beneficiary of an entity is someone:
who ultimately owns that entity through direct or indirect ownership of shares representing 25% or more interest in the capital of such an entity; or
who has voting control of 25% or more of the capital of such an entity by exercising control over such an entity (by for example, having a right to appoint or remove the majority of the entity’s directors/managers).
If it is not possible to identify the real beneficiary (i.e. a natural person) of an entity, then the natural person who exercises control over the entity shall be considered as the real beneficiary.
We Can Assist & Provide Your Businesses And Organizations With The Following Services As required:
- Preparation Of UBO Registry;
- Preparation Of Nominee Director Registry.
