UBO Update

Dear Esteemed Investor,

As per the UAE Cabinet Resolution No. 109 of 2023 issued as on 06 November 2023 on the “On Regulating the beneficial owner procedures”, all companies based in the UAE mainland and commercial free zones are mandated to maintain registers of their shareholders and beneficial owners. It is an essential requirement for the companies to file such information with the relevant registrar and licensing authorities.

 Objective:

  • Contribute to the development of the business environment and the country’s capabilities and economic standing in accordance with the international requirements by regulating the minimum obligations of the Registrar and legal persons in the country, including the procedures of licensing or registration, and regulation of the Beneficial Owner’s Record and the Register of Partners or Shareholders.
  • Develop effective and sustainable executive and regulatory mechanisms and actions for the regulation of the procedures of the Beneficial Owners

 

Ultimate Beneficial Owner  

    Ultimate beneficial owner is The natural person who ultimately owns or exercises ultimate control over a legal person, directly or through a chain of ownership or control, or other indirect means, as well as the natural person on whose behalf transactions are conducted or who exercises ultimate effective control over a legal person or a legal arrangement, specified in accordance with the text of Article (5) of Cabinet Resolution No. 109 of 2023 details the process in identifying the beneficial owner.

 

Licensee to be maintained: 

Companies must create and maintain the following registers at their office:

  • Register of partners or shareholders (Article 10)
  • Register of beneficial owners (Article 8)

Other Key Requirements: 

  • Every Entity must take reasonable measures to obtain appropriate, accurate and up-to-date data for the Registers and preserve its records from damage, loss or destruction.
  • The Decision details the data to be collected and entered on each respective Register. Any additional data requested by the Registrar shall need to be provided by the deadline specified in the data request.
  • Any case of a violation to the provisions of this Decision can result in administration penalties as states in Cabinet Resolution No. 132 of 2023


Reference 

You may refer to the Cabinet Decision here:

Beneficial Owner Procedure Regulation Webinar 

Click here to watch the webinar organized in cooperation with the Ministry of Economy and Executive Office of Anti-Money Laundering and counter Terrorism Financing, for investors and employees in Hamriyah Free Zone Authority and Sharjah Airport International Free Zone Authority.

 

Declaration

You may submit the information required at our e-Portal

Click here for Ultimate beneficial owner Declaration Application Form

 
Contact Us
Please send any questions you may have regarding Ultimate beneficial owner Regulation to r.compliance@hfza.ae