Key Highlights on Ultimate Beneficial Ownership Regulations in UAE
The UAE gives businesses many ways to grow. Every business must follow the rules set by the government. One key rule is the Ultimate Beneficial Ownership (UBO) regulation. UBO makes business in the UAE more open and honest. Companies must stay compliant with UBO to avoid penalties and show they’re trustworthy.
Who Is a UBO in the UAE?
A UBO is the person who owns or controls a company in the UAE. This person can control the business directly or through others. The UAE asks all companies, whether on the Mainland or in Freezones, to report their UBO. Companies must give full UBO details to the right authority.
Key Compliance Requirements Under the UBO Regulation
Every business must:
- Identify and report its UBOs.
- Record UBO details in a register.
- Keep the register private and share it with authorities if asked.
- Register must have the UBO’s name, address, share volume, power, and contact details.
- Update the register when UBO changes happen.
- Keep the register until five years after business ends.
If companies don’t follow these rules, they can face heavy penalties.
What Types of Entities Are Considered UBOs?
UBOs can include:
- Direct owners: People who directly own company shares.
- Indirect owners: People who own shares through other companies.
- Controllers: People with strong control but not much ownership.
- Economic beneficiaries: People who gain money from the business but don’t own it.
- Senior management: Leaders with strong control over company actions.
- Trustees and nominees: People holding shares for others.
Every company must check carefully and report all these types.
Steps to Ensure Compliance
Companies should:
- Find and identify every UBO.
- Keep a clear UBO register.
- Name a compliance officer for UBO tracking.
- Update UBO records after any change in ownership.
These steps help companies avoid fines and stay compliant.
How Mubarak Al Ketbi Chartered Accountants Can Help
Mubarak Al Ketbi Chartered Accountants can help your business meet every UBO rule in the UAE. Our team knows the latest AML and UBO laws. We guide you through every step, keep your records updated, and protect you from unexpected penalties.
When you work with us, you’ll see we leave no stone unturned!
For more information:
- Visit our office: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud, Dubai – UAE
- Contact/WhatsApp: +971 50 276 2132
