UBO Ultimate Beneficial Owner form – Procedures for Real Beneficiaries

Maintaining a business in the UAE requires entrepreneurs to keep themselves updated regarding frequent changes to Emirati Laws. While they might not have the time to involve themselves in these proceedings directly, they must stay updated to ensure compliance. Ever so often, these changes require companies to undertake more compliance measures, which they must do to stay on the right side of the law. In this article, we will take a look at a new Cabinet Decision regarding Procedures for Real Beneficiaries.

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Regulation of Procedures for Real Beneficiaries

As per Cabinet Decision No. 58 of this year, there are some changes with regards to the Regulation of Procedures for Real Beneficiaries. This new rule makes it compulsory for all Mainland companies to maintain details regarding a Beneficiary Ownership Register, or BOR. This law will also hold good for all companies incorporated in non-financial Free Zones. Such companies must submit the relevant details and documents to its concerned Relevant Authority on time to maintain compliance.

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Who is a real beneficiary?

A real beneficiary is any individual who holds ownership or either indirectly or directly exercises control over the institution. Furthermore, the organization carries out transactions on behalf of such an individual. The term ‘effective control’ means the right to vote, as well as a minimum 25% shareholding capacity. It could also refer to an equivalent contribution to the company’s capital and the right to manage, appoint and dismiss the company’s managers.

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Further Requirements

The directive states that companies must obtain and maintain up-to-date information regarding their Real Beneficiary. The information collected should include the following;

  • Name of the Real Beneficiary
  • Nationality
  • Place of birth
  • Legal documents including Passports, Emirates ID card
  • The basis for becoming the Real Beneficiary
  • Date of expiration of the said role

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In case no individual exercises such control over the institution, the company can register someone to hold such a post. Usually, companies will manage or appoint people in senior management roles to such a position. However, if the company enjoys disclosure benefits, they do not have to publicize their records.

As per the new directive, all existing companies have sixty days to create such a BOR and submit it. In effect, companies had time from the 27th of August, 2020 to the 27th of October 2020 to submit the BOR to relevant Regulatory Authorities. All amendments and updates to the document must be done within fifteen days of understanding a change is required. The Law also mandates that nominal management members must notify companies. Furthermore, the Regulatory Authorities can exchange information on the BOR with other foreign authorities. Failure to maintain the BOR can also lead to the authority applying several administrative sanctions as it deems fit.

 

For enquiries, call +971 45 570 204 / E-mail: support@kgrnaudit.com

 

 

 

 

 



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