Ultimate Beneficiary Owner (UBO) Compliance

New regulations concerning ultimate beneficial ownership have been implemented in the UAE, pursuant to Cabinet Decision No. 58 of 2020 on the Regulation of Procedures Related to Real Beneficiaries (the “Regulations”). The Regulations, which came into force on 28 August 2020, now require all businesses registered in the UAE (subject to exceptions) to maintain registers of their direct shareholders and their ultimate beneficial owners and to submit those registers to their local regulatory authority.

The Regulations apply to all entities incorporated in the UAE, whether such entities are located in mainland UAE or in any of the UAE’s commercial free zones. However, entities wholly owned by the Federal or Local Government are exempted from the regulation. All Relevant Entities are required to notify their respective registrar or licensing authority of its shareholders and Real Beneficiaries by deadline notified by respective authorities and thereafter on an ongoing basis.

As per regulations, all relevant entities must now:

• 1.Maintain the following registers
  • A register of its partners/ shareholders, including details of the ownership interests and voting rights held by each of them;
  • A register of its Real Beneficiaries, including the reason why they are a Real Beneficiary and the date on which they became so; and
  • A register of its directors and nominee directors;
• Submit such information related to its shareholders and Real Beneficiaries to respective authorities;
• Take reasonable measures to obtain accurate information and keep the registers up-to-date date on a continuing basis and notify respective authorities of any changes to the information provided within 15 days of such change occurring.

Identifying the Real Beneficiaries – Each Relevant Entity must identify its Real Beneficiaries, being:

1.Any natural person who owns or controls at least 25% of the Relevant Entity’s issued share capital, whether directly or indirectly, or anynatural person who has the right to appoint or dismiss the majority of the directors/managers of the Relevant Entity; or

2.If no natural person satisfies the criteria above, then any natural person who exercises control over the Relevant Entity through other means will be deemed to be a Real Beneficiary; or

3.If the Relevant Entity is not able to identify any natural person who meets either of the criteria above, then the Real Beneficiary shall be the natural person(s) who is responsible for the senior management of the Relevant Entity.

HOW TRC PAMCO CAN HELP

• TRC can support you in assessing the impact of the regulation on your business
• Ensuring that your company complies with its administrative and statutory responsibilities. TRC will assist you in filing the declaration and details, as desired by the Authorities.
• Support you to comply with your obligations and to focus on what you do best – manage your operations and grow your business.