How Can Business Setup Consultants Help You Comply with UBO Requirements in the UAE
With the enactment of Cabinet Resolution No. (58) of 2020, the entities registered in the UAE are now forced to comply with a set of requirements aimed at enhancing their transparency. In accordance with the resolution, the entities need to disclose data on its Ultimate Beneficial Owners (UBO), which will also accelerate UAE’s fight against financial crimes such as money-laundering and tax evasion.
Mainland, offshore and free zone companies (except DIFC & ADGM financial free zones) are required to meet the UBOP requirements in the UAE. UBO compliance may appear complex to the relevant entities, especially with maintaining the Real beneficiary Register. It is in times like these, the companies require the assistance of qualified business setup consultants in Dubai.
Let’s discuss how the UAE business setup consultants can help the companies:
Consultation on Determining the Real Beneficiary
The first requirement of meeting the UBO requirements in the UAE is to identify the real beneficiary of the company. The UBO Law in the UAE defines a Real Beneficiary as a person who owns or ultimately controls the company through direct or indirect shares of equity of the capital at 25% or more or has the right to vote at 25% or more. It includes the Natural Person who conducts transactions on behalf thereof, or who exercises ultimate effective control over a Legal Person through other means such as holding a right to appoint or dismiss the majority of its directors.
The Real Beneficiary can be tracked through any number of Legal Persons or arrangements of any kind. If more than one person participates in owning or controlling a share of the Legal Person’s Capital, all of them shall be treated as owners and controllers of such share. The best business setup consultants in Dubai can offer consultation for companies in determining the Real Beneficiary.
Guidance on Real Beneficiary Register
The Cabinet Resolution specifically mandates the companies to maintain a Real Beneficiary Register (RBR) within 60 days from the date in which the resolution becomes effective. The Legal Person is required to update the RBR with any changes that occurred within fifteen days, being aware of it. The RBR must include the details of the Real beneficiary such as
- Full name, nationality, date and place of birth
- Place of residence, or address to which notifications are to be sent
- Passport or ID number, country and date of issue and expiry
- The basis on which he became a Real Beneficiary of the Legal Person, and the date on which it acquired that capacity
- The date on which a person ceases to be a Real Beneficiary of the Legal Person
Assistance in Maintaining Partners or Shareholders Register
Business setup consultants in Dubai assist the companies in complying with the mandatory requirement of keeping a Partners or Shareholders Register (PSR). As per the resolution, the Legal Person should maintain the data of each partner or shareholder in the PSR. Changes must be incorporated in the register within 15 days of being aware of it. The following details must be included in the PSR:
- Number and class of shares or equates owned by each of them, and the voting rights associated with them.
- The date on which the partner or shareholder capacity was acquired.
- For partners or shareholders who are natural persons: Full name according to what is contained in the ID or Passport, nationality, address, place of birth, name and address of the employer. In addition to attaching a true copy of a valid ID or Passport.
Get Assistance from Business Setup Consultants in Dubai
As per the Cabinet Decision No.58/2020 the mainland, offshore and all the free zones companies are required to identify the Real Beneficiary of the company. The entities are also required to maintain a register of their Real Beneficial Owners that contains specific data about them. The UAE UBO laws require the newly set up companies to provide the register within 60 days of its incorporation.
To successfully meet the requirements and to ensure compliance, the companies require the legal expertise of business setup consultants in Dubai, UAE such as Jitendra Business Consultants (JBC). JBC can assist the companies by
- Providing training and guidance for the companies to maintain the registers, Real Beneficiary Register (RBR) and Partners or Shareholders Register (PSR)
- Assisting to maintain the registers on the company’s behalf and provide secretarial services to maintain and update the registers regularly and comply with the regulations at the time of incorporation, renewal and making an amendment