Brief on the new UAE cabinet decision No. 58 of 2020 on regulating the Ultimate Beneficial Owners procedures in UAE

On 24 August 2020, the UAE Cabinet published Cabinet Decision No. 58/2020 on Regulating the Beneficial Owner Procedures.

Applicability – All UAE mainland & Commercial Free zone companies except 

1. Companies in financial free zones (Abu Dhabi Global Markets and Dubai International Financial Centre).
2. Companies which are directly or indirectly wholly owned by federal or Emirate government.

Requirements & Deadlines

• Companies are now required to submit UBO information to the Registrar by 27 October 2020 (within 60 days from the date of the Decision) or at the time of incorporation, whichever comes first.
• Licensees in the UAE are required to maintain a Register of Partners/Shareholders and a Register of Real Beneficial Owners at their registered office.
• Submit the information stated in this decision to the competent licensing authorities

Ultimate Beneficial Owner

The natural person who ultimately owns or controls, whether directly through a chain of ownership or control or by other means of control such as; 

• 1. the right to appoint or dismiss the majority of its Directors
  2. 25% or more of the shares 
  3. 25% or more of the voting rights in the Legal Person. 

If no natural person is identified as an ultimate Beneficial Owner in accordance with the above condition, then any natural person who exercises control over the company through other means shall be deemed as the ultimate beneficial ownership in Dubai.

If no natural person satisfies both the conditions above, then a natural person who is responsible for the senior management of the company will be deemed as the ultimate beneficial ownership in Dubai.

REGISTERS REQUIRED TO MAINTAIN

Legal Person shall keep and maintain a Register of :

1. Register of Beneficial Owner
2. Register of Partners or Shareholders & Nominee Directors/Managers

REGISTERS REQUIRED TO MAINTAIN

Legal Person shall keep and maintain a Register of :

1. Register of Beneficial Owner
2. Register of Partners or Shareholders & Nominee Directors/Managers

NON COMPLIANCE

If companies are found to be non-compliant with the Decision, the UAE Ministry of Economy may impose sanctions on those companies. The list of administrative sanctions is yet to be issued.

Additional points

• The Legal Person must update and record any change to the Register within (15) fifteen days of becoming aware of such change
• In the case of companies which are under dissolution or liquidation, the appointed liquidator has an obligation to provide a true copy of the updated UBO register to the Registrar within 30 days of the liquidator’s appointment.
• All companies are required to ensure that the registers are updated to include accurate information of any changes to the UBOs and shareholders or partners and this should be maintained on a continuing basis.

Companies licensed in the UAE which are ultimately listed on a market that provides for robust transparency rules on Real Beneficial Owners are exempt from certain of the requirements in the New Cabinet Decision.

For more information call us: +971 (0) 44258131/ 561672533 or for other query mail us: info@elevateauditing.com.

CA. Jinu Varghese
Mob: +971(0)561672533
Email Id: info@elevateauditing.com