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Ultimate Beneficial Ownership UBO Services in UAE

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. New requirements are presented by the resolution to disclose its beneficial owners. The main objective is to enhance the clarity of entities registered in the UAE, as well as to expand successful and sustainable executive and regulatory mechanisms and procedures in respect of beneficial owner data.

The obligations to combat money laundering and terrorism financing extend to electronic money institutions, assigned careful client identification. One important aspect of this responsibility is the identification of Ultimate Beneficial Owners (UBO) among their clients.

At MASAR Chartered Accountants, we lead the charge in offering top-level management consulting services in the UAE, comprehensively addressing UBO requirements. We ensure that your entity complies with these developed regulations, safeguarding its integrity and global reputation.

ultimate benefits owners UBO services in UAE

Navigating Ultimate Beneficial Ownership (UBO) Exceptions:

In the context of UBO regulations, it’s vital to understand the exceptions that apply. Notably, these regulations do not extend to companies falling into specific categories. Exceptions include entities that are wholly owned, either directly or indirectly, by the federal or local government or their subsidiaries. Additionally, companies registered in the financial-free zones of the UAE, such as the Abu Dhabi Global Market and the Dubai International Financial Centre, are exempt from these regulations.

Understanding these exceptions is crucial, as it helps businesses and entities in these categories navigate the regulatory landscape with clarity and confidence.

Defining Ultimate Beneficial Owner (UBO) Declaration

Within the framework of UBO regulations, it’s crucial to understand how UBOs are defined. According to these regulations:

  1. UBOs are individuals who possess direct or indirect ownership of at least 25% of the entity’s shares or those with voting rights over at least 25% of the shares.
  2. In cases where no clear UBO emerges as per the above criteria or there are doubts regarding the true UBO, the UBO designation extends to the natural person exercising control over the entity through alternative means.
  3. When none of the conditions above are met, a natural person responsible for senior management within the entity assumes the role of UBO.

The register of UBOs must include specific information, such as the UBO’s name, nationality, place of birth, residential address, travel ID card number (including the date of issuance and expiry), the rationale for classifying the individual as a UBO, and the date of assuming or ceasing the UBO role (if applicable).

It’s important to note that the requirement to maintain a UBO register does not apply to entities owned by:

  1. Companies listed on recognized stock exchanges are subject to correct disclosure requirements ensuring transparency of their beneficial owners.
  2. Companies that are wholly owned by such listed entities. Further details regarding recognized stock exchanges are not provided within the Regulations.

Understanding these UBO definitions and regulations is essential for businesses and entities aiming to meet compliance requirements while promoting transparency and accountability.

Managing Partners and Shareholders:

When it comes to keeping track of partners and shareholders, a company’s responsibilities are well-defined by the Regulations. Here’s how it works:

  1. A company must maintain a record of its partners or shareholders as required in the Regulations.
  2. If there are any changes to this register, the company is required to update it within 15 days from the date of the change.
  3. The register of partners or shareholders should encompass specific information, including but not limited to:
    • The number of shares held by each partner or shareholder.
    • The voting rights associated with these shares.
    • The date when each partner or shareholder acquired their shares.
    • Comprehensive details regarding each partner and shareholder, whether they are natural individuals or legal entities, as outlined in the Regulations.

These regulations serve to ensure that companies maintain accurate records of their partners and shareholders, enhancing transparency, legal compliance, and accountability within the corporate landscape.

Key Deadlines for Ultimate Beneficial Ownership (UBO) Submission

When it comes to the submission of UBO information, deadlines are a crucial factor to consider. Existing entities are required to submit their register of UBOs and register of partners or shareholders by June 30, 2022, or at the time of incorporation/registration for new entities.

It’s important to note that the Registrar holds the authority to request supplementary information beyond what is mandated by the Regulations. This emphasizes the significance of maintaining accurate and updated records to meet compliance requirements.

MASAR consultants can assist you with

  • Consultancy related to UBO declaration.
  • Maintenance of UBO register.
  • UBO record maintenance.

In the area of Ultimate Beneficial Ownership (UBO), MASAR consultants stand as your dedicated partners, offering a range of vital services. Whether you require expert guidance and consultancy related to UBO declaration, the exacting maintenance of your UBO register, or the ongoing upkeep of UBO records, MASAR is your trusted partner in navigating the complex landscape of regulatory compliance.

With MASAR by your side, you can confidently address UBO requirements, ensuring transparency, accountability, and attachment to develop regulations. advance your corporate governance and safeguard your entity’s integrity with MASAR’s proven expertise.