Introduction to UBO Reporting in UAE
Companies in the UAE must follow rules for reporting their Ultimate Beneficial Owner (UBO) details. UAE made these requirements effective in 2020. Companies in mainland and free zones now must update UBO records in the official registers. This helps authorities know who owns and controls each business. Mubarak Al Ketbi (MAK) Auditing guides companies in Dubai and across the UAE with these tasks.
Latest Updates on UBO Reporting
The UAE set out UBO reporting rules through Cabinet Resolution No. 58 of 2020. Each company must update UBO data as the authorities ask. Recently, free zones such as DMCC (Dubai Multi Commodities Center) and JAFZA (Jebel Ali Free Zone Authority) changed their submission deadlines.
Key updates:
- DMCC companies must submit UBO details by 28 June 2021.
- JAFZA companies must submit UBO details by 15 April 2021 (extended from 31 March).
- Each free zone gives its own instructions about what to report.
JAFZA, for example, asks companies to give:
- Full ownership structure, including the UBO.
- Business model details.
- Financial statements.
- Information about legal advisors, banks, auditors, clients, and employees.
How DMCC Companies Must Report UBO
Companies registered with DMCC need to update UBO details in the DMCC online portal. Usually, companies do this at incorporation. If you haven’t updated yet, you must do it before the deadline. If the UBO information changes later, you must update the DMCC portal right away. Companies must check their ownership structures often and make changes in time. If you miss the deadline, you may pay a penalty.
JAFZA UBO Declaration Process
JAFZA-registered companies must update UBO details by the extended deadline using the UBO form on the Dubai Trade Portal. After the first filing, companies must update any big change in UBO within 15 days. It’s smart to talk with compliance experts like Mubarak Al Ketbi (MAK) Auditing. They can help you understand JAFZA’s requirements and make sure you comply with all rules.
Why Is Declaring UBO Important?
Declaring the UBO gives authorities more transparency. It helps fight money laundering and financial crimes. UBO reporting also builds trust with other businesses and investors. More regulatory controls like these come from global best practices. They protect investors, partners, and the whole business environment.
Benefits of UBO reporting:
- Makes business ownership clear.
- Protects against illegal activities.
- Supports growth and fair trade.
- Follows international standards.
What Is UBO and How Do You Identify It?
The UBO is the person who really owns or controls a company. Usually, this is someone who holds at least 25% of shares or voting rights. Sometimes, the UBO is the person who exercises control by other means. If no one fits these rules, the top manager is considered the UBO.
Common UBO Reporting Mistakes
- Missing deadlines for submission.
- Not updating after a change in ownership.
- Giving incomplete information.
- Failing to check rules for your specific free zone.
Steps for UBO Reporting Compliance
- Know your company’s UBO.
- Collect all ownership and control details.
- Check your free zone’s rules and deadlines.
- Use the right portal or form for your submission.
- Update UBO data when ownership changes.
- Ask an expert for help if you’re unsure.
How Mubarak Al Ketbi (MAK) Auditing Can Help
Mubarak Al Ketbi (MAK) Auditing supports companies with all UBO reporting needs. Our team tracks new rules and deadlines for you. We help you prepare, update, and file UBO information on time. We keep your records safe and confidential. Our compliance experts answer your questions and guide you at every step. When it comes to staying ahead in compliance, don’t let the ball drop—work with Mubarak Al Ketbi (MAK) Auditing and get peace of mind.
- For more information, visit our office: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
- Contact/WhatsApp: +971 50 276 2132
