The UAE cabinet resolution authorizes every operational business to account for the details of the beneficial owners. The state companies, federal entities, and the companies working the financial free zones are exempted from keeping records. These entities are guided to maintain two registers:
- Register of partners or share holders
- Register of beneficial owners
Cabinet Resolution No. (58) includes Articles (1) to (20) which describes about the provisions for Ultimate Beneficial Owner.
Article (1) to (4):
Articles (1) to (3) states the scope and goals of the decision. Licensing or registration of the Legal Person is described under article (4). The legal person shall provide the following information:
- Name, legal form, and memorandum of association
- Head office or the principal address of the business. Foreign Legal person must provide the name and address of its legal representative in the State along with evidence
- Articles of Association or relevant documents approved by the Relevant Entity in the State
- Names of the concerned individuals with senior management designations within the organization should provide information from their passports or identity card including the papers’ number, dates of issuance and expiration, and information about issuing organization
The legal person must own an accurate register in the state and no name shall be repeated.
Article (5): Identification of the Beneficial Owner:
Following is the criteria to identify a beneficial owner:
- A beneficial owner often holds 25% or more of the share in a business depending on the company’s requirements or the voting rights.
- Two or more persons holding the defined share in a business are marked as beneficiary owners.
- Manager of the business shall be appointed as the beneficial owner if partners are not present.
- In case of absence of both partners and managers, the highest authority present shall be considered as the beneficial owner.
Article (6): Transparency and Beneficial Owner:
Maintenance of the records of the beneficial owners is mandatory which includes:
- Name of the beneficial owner
- Date and birth place
- Residential address
- Qualifications list
- Nationality
- Identity card or passport details
- Date of appointment as beneficial owner
- Date of termination as beneficial owner
Article (7): Notices of Beneficial Owner:
The Legal Person must enquire about the Beneficial Owner’s status if they assume that the person’s ultimate beneficial ownership information is incorrectly listed in the Register of Beneficial Owners. Failing to answer the inquiry within 15 days, the Legal Person must notify the person.
Article (8): Register of the Beneficial Owner:
Maintenance of the records of the beneficial owners is mandatory which includes:
- Name of the beneficial owner
- Date and birth place
- Residential address
- Qualifications list
- Nationality
- Identity card or passport details
- Date of appointment as beneficial owner
- Date of termination as beneficial owner
Article (9): Nominee Board Members
The manager or board member who serve as a nominee board must inform the legal person that they are a nominee board member along with all the required documents as per article (10) of the resolution. Separate records for the same must be kept.
Article (10): Register of shareholders or partners:
Legal Person must record information of shareholders and partners in a separate register. Any change or updates must be made by the Legal person within 15 days. Following details are to be recorded:
- Numbers of individual shares with categories and associated voting rights.
- Date on which the partner of shareholder gains the position as the Legal Person.
- Natural partners or shareholders must provide full name in accordance with identity card or the passport, nationality, address, birth place, name and address of employer along with original copy of the valid passport or ID.
- Corporate partners or shareholders shall provide the data stated in Clause (1) of Article (4)
Articles (11) to (13) explains about the register and its obligations.
Article (14): Change of data
The Legal Person must update any changes in the details of the beneficial owner partners, or shareholders within 15 days after informing about the change.
Article (15): Data Confidentiality
Data in the Register of Beneficial Owner or in the Register of Partners or Shareholders must remain confidential. The Ministry and Registrar shall not disclose the information without the consent of the Beneficial Owner or the Nominee Board Member.
Articles (16) to (20) talks about the internal and international collaboration, complaints, and the resolution’s repeals.
Maintaining the records of the beneficial owners is mandatory to ensure authenticity of the entity operational in the state.
AKA services:
We provide consultancy services relevant to UBO declaration:
- Guidance and assistance in preparation and maintenance of registers
- Updating the records in the registers
The experienced team at AKA provides assistance throughout the process. We promise to provide high-quality services through our in-depth knowledge and expertise.