UAE Cabinet recently issued Resolution no 58 of 2020 regarding the regulation of registry and procedures of corporate beneficial owners. With the enforcement past due, UAE companies are now mandated to comply with all reporting obligations that are prescribed by the resolution, which include maintaining registers for ultimate beneficial owners, as well as trustees, shareholders, and shadow directors of companies. The date of application for the regulations is the 28th of August 2020.
Take note: hefty fines and administrative penalties will be imposed on businesses that fail in complying with the regulations.
Purpose of new regulations
The register, including the implementation of the real beneficiary procedures, was established in order to prevent money laundering. It’s also targeted to avoid terrorist financing, as well as maintain data regarding beneficial owners of trusts, foundations, and companies.
Duties of UAE Companies
- Submission of records of company/trust/foundation’s beneficial owners to local authorities – within a month of the establishment of own records of beneficial owners, every business has to submit an accurate, true, and updated copy of records of the beneficial owners.
- Providing notifications to local authorities in case of changes – when there is a change or amendment in- particulars which are contained in records of company’s beneficial owners, the company has to submit to the Registrar or local authority a notice regarding the change or amendment, as well as the date in which the change occurred
- Retention of documents in case of striking off, termination, and dissolution – company must retain records of beneficial ownership at the date and time of dissolution, striking off or termination for the minimum period of retention and must comply with all requirements of local authorities under the new regulations within the period
- Recording of the company’s beneficial owners – every company/trust/foundation has to keep a record of particulars of beneficial owners. If the relevant organization is existing during the time of these new regulations’ enactment, it shall make sure that it has records of beneficial owners established not beyond ninety days following the enactment date of the regulations. If the organization comes into existence any time following the enactment date of new regulations, it shall make sure that records of beneficial owners are established as per the rules of the formation of the local authorities.
Take note: Required particulars include the following:
For natural persons:
- Complete name (including former name)
- Date of birth
- Country of residence
- Date in which the person was considered as the beneficial owner
- Grounds as to which the person is labeled as the beneficial owner
For foreign nationals or not natural persons:
- Registered name
- Registration number or equivalent
- Registered address
- Country of registration
- Date in which person is a beneficial owner
Company Formation Consultants in UAE
At FAR Consulting Middle East, our team of business setup consultants will be able to advise you on how or whether the new regulations are applicable to your company. We also provide assistance on all the applicable requirements, as needed. Contact us today for more details!