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UBO Compliance

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Ultimate Beneficial Ownership UAE

A natural person who owns or controls a business, trust, or other legal organization and receives benefits from its assets and earnings is said to have Ultimate Beneficial Ownership (UBO).

  • A person who has the right to vote for at least 25% of the entity’s shares or who owns or controls at least 25% of the shares through direct or indirect ownership.
  • The natural person who exercises control over the entity through other ways shall be regarded as the UBO if no UBO is recognized in line with the foregoing or if there is any dispute as to whether any identified UBO is the real UBO
  • A natural person in charge of the entity’s senior management shall be regarded as the UBO if none of the previously mentioned criteria are satisfied.

Important Conditions for Ultimate Beneficial Ownership

Businesses subject to UBO compliance service duties are required to fulfill the following criteria:

Getting the Real Beneficiary Register Ready and Filed

The full name, nationality, place, and date of birth, residence, address for notification purposes, passport or ID number, country, date of issue and expiration, basis and date on which the person became a real beneficiary, and the date on which the person ceases to be a real beneficiary are all details that should be included in the RBR for the beneficial owner.

The register must be prepared and then submitted to the appropriate regulatory body. Utilizing Dubai’s UBO compliance services can assist businesses in preparing and submitting the RBR registration.

Also, Check: Economic Substance Regulations Services In Dubai

Getting the Partners or Shareholders’ Register Ready and Filed

Companies must keep the partner or shareholder information specified in the Cabinet Decision for the PSR.

Getting the Nominee Director/Manager Registry Ready and Filed

If necessary, the businesses must create, submit, and keep up a Nominee Director/Manager registry. Information about Directors and Managers who are functioning under another person’s orders should be included in the register. The corporations can get assistance from UBO compliance services in Dubai in preparing and submitting the Nominee Director / Manager Register.

How To Prove The Ultimate Beneficial Owner?

The following approach should be used to identify and authenticate a company’s UBO compliance:

  • To verify that the company is legal and registered, obtain the credentials of the legal entity that manages it.
  • To find out who owns the legal entity, collect data on the chain of ownership for each person who has direct or indirect control over the legal entity through shares or capital stock.
  • Investigate the ownership share, percentage, and management control of the beneficiary. This may help you to identify the persons who have the most power over the company.
  • Compare the levels of ownership and control of each NPO with the conditions for identifying a UBO set out in Resolution 58. The UBO will be the person who meets the criteria.
  • Third-party assistance can simplify the UBO test. Once the UBO has been identified, the company should gather the necessary information and compile a register of beneficial owners for submission to the authorities.

Register

The procedure of identifying the UBO and then collecting information about it, which is then entered into the UBO register, starts with the declaration. According to the Resolution, legal persons are required to submit:

  • Register of the beneficial owner
  • Information on the nominated board member
  • Register of partners or shareholders

The following information from the UBO must be recorded in the register:

  • Full name, address, place of birth, and nationality.
  • Residential address to which notices are to be delivered
  • Number, place of birth, country of issue, date of issue, and expiry date of the work identification card or passport.
  • The date on which the natural person became a UBO and the grounds on which he has selected
  • The date on which the UBO ceases to be a natural person.

Cabinet Resolution 58/2020 can tell you exactly what information you will need to establish the above documentation.

It is not easy to obtain information about your UBO compliance and then compile the documentation for submission. A third party, such as Bestax, can help significantly. Bestax is a consultancy agency specializing in helping companies to comply with national legislation.

The first step is a chain of ownership analysis and UBO approval

  • Helping you to collect data on your UBO, nominee directors/managers, and partners/shareholders and compile it. They can ensure that your document accurately meets the resolution standards.
  • Help you organize the procedure for filing with the authorities.
  • Help you to organize your registers and ensure that the information contained in them is up to date.
  • Certificate
  • Legal entities that comply with the Resolution are issued a UBO certificate. This certifies that the company has approved its UBO and maintains an up-to-date register of UBO information.

If the company ever has to deal with law enforcement authorities for financial malpractice, a UBO certificate can be very useful. The certificate is issued by the licensing authority responsible for registering companies in the country.

Bestax’s UBO Compliance Services in Dubai, UAE

Companies should proceed with care as the UAE is strictly enforcing AML-related compliance regulations, such as the UBO. A trade license suspension, severe fines, and risks to one’s reputation might result from noncompliance. To effectively manage the complex UBO compliance system, hire top UBO experts in Dubai.

Our specialists at Bestax offer guidance to businesses regarding the establishment, upkeep, and record-keeping of UBO registers. Bestax has the authority to file an appeal on the client’s behalf if there is a penalty. Business owners can speak with our consultants in Dubai if they have any questions regarding the standards for UBO compliance.

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