Ultimate Beneficial Owner (UBO) Register | Push Digits Chartered Accountants

Ultimate Beneficial Owner (UBO) Register

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  Ultimate Beneficial Owner Register

The cabinet resolution number 58, which was passed during August 2020, requires every company registered in the UAE (except governmental entities and legal entities licensed in free zones e.g DIFC) to furnish information regarding their Ultimate Beneficiary Owners (UBO). The government passed this resolution in order to increase corporate transparency by identifying parties that have ultimate control over the companies operating in the UAE. Part of the UBO identification and declaration process requires companies to produce a Register of Beneficial Owners. They must file this register with the authorities, keep it updated at all times, and also keep a copy of it at their official address.

An Ultimate Beneficial Owner for new companies as well as existing companies is required to be disclosed as per the regulations. Currently, companies that don’t comply with the resolution within a given time limit will be subjected to penalties. These penalties will be in the form of sanctions placed by the Ministry of Economy.

As a partner or owner of a legal entity (company), you might be feeling overwhelmed by these new requirements. However, you needn’t worry. The Register of Beneficial Owner is a fairly simple document.

What is the Register of Beneficial Owner?

This is essentially a document that contains data about a company’s ultimate owner. The document must be prepared according to guidelines provided by the cabinet resolution. Companies need to be very careful when maintaining and disclosing the data about ultimate owners as providing incorrect information could have serious repercussions.

The UBO register has to be prepared and submitted by companies no later than 60 days after they have been registered and received their license. Once the UBO register has been filed with the authorities, companies also need to notify the authorities of any amendments that are made in the document. The resolution states that any notification of amendments should be shared with the authorities no later than 15 days after the amendment was noticed by the company in question.

Requirements of the Register of Beneficial Owner

The purpose of this data is to collect information about UBOs in the UAE and maintain it. The government aims to mitigate the chances of corporate foul play by increasing corporate transparency.

In order to prepare a UBO register for your company, below needs to be done:

  • The UBOs full name, place and date of birth, and their nationality.
  • The residential address/address to which notices shall be sent, in accordance with the resolution.
  • The identity card, passport number, the country from which both were issued, and their issuance and expiry date.
  • The date and basis on which the individual in question became the UBO of the company.
  • The date on which the individual in question stopped being the UBO of the company.

This is all the information that you need to enter your company’s Register of Beneficial Owner. The resolution also provides outlines on what should be done in case someone has an objection about the data being entered in the register. You can read the entire cabinet resolution 58 here.

Companies in the UAE can either maintain this register themselves or appoint third party agencies for assistance in this process. You can delegate the task of producing the documentation required by the resolution to a capable third party. They can also assist you in tracking any changes in the information that you have provided and intimate it with the authorities.

 

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