UAE government release new requirements for entities to disclose its beneficial owners.
Greetings from MBB Auditing!
In UAE financial news, the Government of UAE has released a notification regarding a change made in regulating Beneficial Owner Procedures as enumerated below:
In brief:
Cabinet Resolution No. (58) of 2020 regulating Beneficial Owner Procedures (the “Resolution”) came into effect on 28 August 2020 and replaced Cabinet Resolution No. 34 of 2020 issued earlier this year. The Resolution introduces new requirements for entities to disclose its beneficial owners.
The main purpose is to enhance transparency of entities registered in the UAE, as well as to develop effective and sustainable executive and regulatory mechanisms and procedures in respect of beneficial owner data.
The Resolution requires entities licensed in the UAE (unless exemptions apply) to prepare and file a Ultimate Beneficial Owner (“UBO”) register, Nominee Director register (if applicable) and a Partners or Shareholders register, with the relevant authority within sixty (60) days from the date the Resolution came into effect, being 27 October 2020, or by the date the entity is established.
Register of UBOs:
– UBOs are natural persons who ultimately own or control or have the right to vote with minimum 25% shareholding of the company, whether through direct or indirect ownership or who have the right to appoint or dismiss the majority of the Directors / Managers.
– If no natural person satisfies the condition above, then any natural person who exercises control over the company through other means shall be deemed as the UBO.
– If no natural person satisfies both conditions above, then a natural person who is responsible for the senior management of the company will be deemed as the UBO.
Register of Nominee Director / Manager
a) Details of Directors / Managers acting in accordance with the instructions of another person.
Register of Partner / Shareholder
- b) The number of ownership interests held by each Partner or Shareholder and the voting rights attached to such ownership interests and the date of acquisition of ownership interests.
If entities do not comply with the Resolution, the UAE Ministry of Economy may impose sanctions on those entities. The list of administrative sanctions is yet to be issued.
Our assistance:
Should your company require assistance with the UBO compliance, we can assist you with the following:
– Determine the UBOs of your company.
– Prepare the Registers in the Regulator’s form/Declaration.
– Assist in the submission of the Registers/Declaration to the relevant Regulators.
Disclaimer: Terms and conditions apply for implementing the above, you shall refer to UAE tax law and regulations for complete information’s, or contact us.
Click here to read about the UAE (ESR) update.
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