UBO - Ultimate Beneficial Owner Services in Dubai, UAE
The Ultimate Beneficial Owners (the UBO Law) is part of the UAE government’s efforts to ramp up measures to deal with tax avoidance and money laundering while maintaining international best practices.
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1500+ Audit Completed
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2500+ Consultation
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Overview of UBO Declaration In The UAE
This regulation’s main intention is to bring more transparency in the UAE economic framework via improved disclosure and record-keeping requisites for companies. The Ultimate Beneficial Owner (UBO) regulations in Dubai will ensure that companies pay adequate attention to their ownership structure to avoid non-compliance with anti-money laundering and anti-terrorism financing laws.
Ultimate Beneficial Owner (UBO) Disclosure in the UAE
UBO Register
The UBO Register must have the details of the company’s “Real Beneficiaries,” which, according to the UBO Law, is defined as: Natural persons who own/control, either directly or indirectly, a minimum of 25% of the company’s share capital, or those who hold at least 25% of the voting rights, or those who control the company via mean, i.e., by having the right to appoint or dismiss a majority of the directors or managers.
UBO Exemptions
Companies listed on the regulated stock exchanges and the subsidiaries of such listed companies do not need to submit any separate registers with information about Ultimate Beneficial Owner to the Registrar. The disclosures made by them to the relevant stock exchanges will be counted as the relevant required submission in its place. Those companies wholly owned by a local or federal government body or are set up in the DIFC, or ADGM financial free zones are also exempted since they are subject to their own UBO disclosure requirements.
UBO Law Offences and Penalties
Companies that fail to abide by any obligation set out in the UBO Law can attract several penalties for the company as well as the company officers. In some cases, the beneficiaries and shareholders will also get penalized. Some of the violations that can attract penalties include:
Why TAR CSP
The new UBO regulations require businesses registered and licensed in the UAE to maintain registers and submit their details to local authorities. As one of the leading business set up consultants in Dubai, TAR CSP can help you assess the structure of ownership essential to comply with UBO regulations. Our consultants can help you prepare the various registers and arrange filings with the pertinent authorities.
- Maintain the UBO and allied registers
- Avoid the fines and penalties
- Comply with regulations
Still unsure about where to start or what steps to take?
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Commonly Asked Questions
To put it quite simply, the UBO Law makes it a must for companies to maintain registers with details about ultimate beneficial owners (UBOs), shareholders, and nominee board members.
The UBO Law applies to all businesses/companies licensed and registered in the UAE. The only exceptions to the UBO law are companies that are wholly owned by a local or federal government body and those set up in the DIFC or ADGM financial free zones since they are already subject to their own UBO disclosure requirements
Under the UBO Law, companies must maintain one register of UBOs and another register of shareholders/partners. If an entity has trustees or nominee managers, information about them must also be included in the shareholder/partners register.
The UAE Ministry of Economy makes it compulsory for companies to submit the Ultimate Beneficial Owner register to the Registrar within a given deadline. Companies that do not comply with the deadline or fail to maintain the UBO register will be subject to the Ministry’s administrative sanctions. However, the Ministry is yet to disclose the exact sanctions that will be imposed on such defaulting companies.
Under the UBO Regulations, all companies subject to these regulations must prepare and maintain a UBO Register, a Shareholder/Partner Register, and a Register of Nominee Directors/Managers.
