Who Is Real Beneficiary or Ultimate Beneficial Owner
November 15, 2021
on 24th August 2020, UAE issued Cabinet Resolution 58 of 2020, on the Regulation of the Procedures of the Real Beneficiary (Resolution). The Resolution replaces Cabinet Resolution No. 34 of 2020 on Regulations of the Procedures of the Real Beneficiary.
Scope of Application
Applicable on Legal persons licensed or registered in UAE Mainland
Applicable on Legal persons licensed or registered in the commercial free zones of UAE
Exempted
Companies that are wholly owned by the federal or local Government
Companies registered in the Financial Free Zones i.e. Abu Dhabi Global Market and Dubai International Financial Centre
Requirements
Any Licensed or registered Companies in Mainland or Commercial free zone have to maintain Real Beneficiary Register and Partners or Shareholders Register and they have to submit the Ultimate Beneficiary Owner data to the relevant registrar or Licensing Authority.
Who is a UBO
An Individual who ultimately owns or controls a Company or on whose behalf transaction or activity takes place is the Ultimate Beneficial Owner.
In case of a Company, a UBO is any individual who:
owns or controls 25% or more of the shares or voting rights
ultimately owns or controls whether directly or indirectly 25 per cent or more of the shares or voting rights in the business
holds the right, directly or indirectly, to appoint or remove a majority of the board of directors
has the right to exercise, or actually exercises, significant influence or control over the corporate body
exercises ultimate control over the management or controls the corporate body.
In case if the shares or rights are held by a nominee, the UBO shall be either an individual for whom the nominee is acting or the person who exercises ultimate control over the legal entity appointing the nominee.
In case of Partnership, a UBO shall be an individual who controls 25 per cent or more of the capital of the partnership, or 25 per cent or more of the voting rights of the partnership.
In case of a trust, a UBO includes the settlor, trustees, beneficiaries and any individual who has control over a trust.