The United Arab of Emirates just recently replaced Cabinet Resolution No. 34 of 2020 to Cabinet Resolution No. (58) of 2020 regulating Beneficial Owner Procedures (the “Resolution”). The Resolution covers the most updated requirements for the entities in UAE to disclose its beneficial owners which are intended to enhance transparency of the UAE registered entities. It likewise intends to develop effective and sustainable executive and regulatory mechanisms and procedures in respect of beneficial owner data.
The Ultimate Beneficial Owner’s (UBO’s) objectives cover the maintenance of the economic position of UAE with international requirements. It also aims to regulate minimum obligations in disclosure of Beneficial Owners, Shareholders, Partners and Nominee Board Members, and lastly, to establish an effective regulatory mechanism and procedure for the beneficial owner data.
Ultimate Beneficial Owner Rule
As per Cabinet Resolution No. (58) of 2020, Beneficial Owner or Real Beneficiaries can be the following:
On the other hand, there are entities which are exempted with this resolution. They are as follows: (a) the companies in financial free zones like Abu Dhabi Gold Markets and Dubai International Financial Centre, and (b) the companies which are directly or indirectly owned by the Federal or Emirate Government.
Entities will need to assess who constitutes a UBO and consider whether anyone is a nominee Director / Manager. The Register of Shareholders / Partners is not a new concept as this is a requirement outlined in the UAE Commercial Companies Law, as well as in respective Free Zone Companies Regulations. Although the Resolution requires additional information to be detailed (for example, voting rights).
As per Cabinet Resolution No. (58) of 2020, all Relevant Entities must perform the following:
If entities failed to comply with the Resolution, the UAE Ministry of Economy possibly enforce sanctions on those entities. The list of administrative sanctions is yet to be issued.
Authority Name | Notification required | Notification deadline |
---|---|---|
Dubai Media City (DMC) | Yes | 27th of October 2020 |
International Freezone Authority (IFZA) | Yes | 27th of October 2020 |
Dubai Studio City (DSO) | Yes | 27th of October 2020 |
Ras Al Khaimah Economic Zone (RAKEZ) | Yes | 27th of October 2020 |
Fujairah Creative City (FCC) | Yes | 27th of October 2020 |
Sharjah Media City Free Zone (SHAMS) | Yes | 27th of October 2020 |
Ajman Free Zone Authority (AFZA) | Yes | Before 31st of October 2020 |
Dubai Multi Commodities Centre (DMCC) | Yes | Before 31st of October 2020 |
Dubai Outsource Zone (DOZ) | Yes | Waiting for the ministry's confirmation |
Dubai Airport Free Zone (DAFZA) | Yes | Waiting for the ministry's confirmation |
Dubai South (DWC) | Yes | UBO applied only to Corporate and Branch companies. For other entities, still waiting for the ministry's confirmation. |
Dubai Internet City (DIC) | Yes | 30th of September |
Jebel Ali Free Zone (JAFZA) | Yes | No timeframe (Until further notice) |
Dubai Silicon Oasis (DSO) | Yes | 1st of November 2020 |
Dubai Department of Economic Development (Dubai DED) | Yes | No timeframe (Until further notice) |
Sharjah Airport International Free Zone (SAIF) | Yes | Submission will be updated next week via an official email |
Dubai Science Park | Yes | 31st of October 2020 |
Dubai Development Authority (DDA) | Yes | The deadline was supposed to be 30th of September. However, if an entity is not able to comply yet, an entity can still submit the UBO declaration. |
Hamriya Free Zone | Yes | The deadline was supposed to be 1st of November. However, if an entity is not able to comply yet, an entity can still submit the UBO declaration. |
Abu Dhabi Department of Economic Development | Yes | No timeframe (Until further notice) |
Sharjah Department of Economic Development | Yes | No timeframe (Until further notice) |
For Other Authorities:As per the advice from the other authorities, they are still waiting for the ministry approval regarding the extension request. |
On your behalf, AMCA will be the one to prepare the registers of the UBO’s Partners/Shareholders and Nominee Directors/Managers (if applicable) as per the Resolution. You will not be worried regarding the filing of your declaration of UBO, because we will do it for you. In addition to that, we’ll take care of informing the relevant authority regarding the changes and amendment on the information provided. Rest assured that you are in good hands during the filing and submission of your UBO if you work with us.
24 Oct 2020
Business Analyst