Ultimate Benefical owner (UBO) Declaration

UAE Cabinet Resolution 58 of 2020 on the Regulation of the procedures of the Real Beneficiary (UBO) was published in the gazette on 27 Aug 2020.

This Resolution applies to all legal persons (LLC, FZE, FZCO) registered in the mainland and free zones except DIFC and ADGM. Sole Establishments and Unincorporated partnerships are not legal persons and therefore this resolution does not apply to them. Companies wholly owned (directly or indirectly) by the Federal or local government are also excluded.

The purpose of the resolution to ascertain the ‘Real Beneficiary’ of a legal person.

It is normally the natural person who owns at least 25% of the share capital or voting rights or the right to appoint/dismiss the majority of the directors

Real Beneficiary could be the Natural Person who exercises control over the legal person, through other means

If there is no Real Beneficiary for the Legal Person, the Real Beneficiary shall be deemed the natural person who occupy the senior management position

Every legal person must-

Keep a Real Beneficiary Register as per Article 8

Partners or shareholders register as per Article 10

Provide information in the above registers to the relevant licensing authorities as per Article 11