Unveiling the UBO Declaration in UAE

Considering the UBO declaration a challenge? Let us guide you with expert assistance.

If you are worried about common challenges and difficulties in the UBO declaration, then it’s time to leave all the worries behind. As a responsible business owner in the UAE, it is crucial to recognize the significance of fulfilling Ultimate Beneficial Owner (UBO) disclosure requirements. We can help you get started on the journey of transparency. Contact us today and learn how we make things easy for you.

person declaring UBO

Why Does UBO Matter?

Dive into the significance of UBO—know your ownership structure inside out.

UBO Declaration is not just a regulatory obligation; it’s a strategic move to bolster credibility and fortify your business against compliance risks. We guide you through the process, shedding light on the essentials and demystifying the complexities.

UBO Regulations in UAE

UBO Disclosure: Embrace Transparency, Empower Accountability!

The UAE Ministry introduced the Ultimate Beneficial Owner (UBO) Regulation in 2020 to increase transparency in organizations established in the UAE. The regulation requires all businesses to disclose their ultimate beneficial owners to the Department of Economic Development (DED) as quickly as possible. Failure to submit the required documents can result in license issues and service interruptions.

Who is a UBO?

A UBO is an individual who owns at least a 25% share in a company and has voting rights or control over it. Any person with the authority to remove the majority of directors and management is also considered a member. If there is no such person, the UBO is described as someone who has significant power over the business.

UBO Disclosure Requirement in UAE

All businesses with licenses in the UAE are required to submit UBO disclosures, except for those owned by municipal or federal governments. The DED must receive beneficiary declarations and shareholder registrations with supporting documents that attest to the accuracy of the information. Registered businesses cannot take any corporate action until they have completed their required paperwork.

Shared Requirements between ESR and UBO

UBO regulations share the requirement for businesses to disclose the identities of their ultimate beneficial owners. As such, companies must provide accurate and up-to-date information to ensure compliance with both regulations.

Common Challenges in UBO Declaration in Dubai

Some of the common challenges most business owners experience are:

Identification Complexity

Navigating through complex ownership structures can pose challenges in identifying ultimate beneficial owners (UBOs).

Nominee Structures

Dealing with nominee structures or arrangements can obscure the true ownership, making UBO determination challenging.

Cross-Border Entities

Businesses operating across borders may face difficulties in aligning with UBO requirements due to varying international regulations.

Updating Information

Keeping UBO information current is a challenge, especially when there are changes in ownership or organizational structures.

Privacy Concerns

Balancing transparency with privacy concerns of UBOs can be a delicate challenge in compliance.

Understanding Regulations

Staying abreast of evolving UBO regulations and ensuring compliance with specific jurisdictional requirements can be complex.

Why Now Consultant for UBO Declaration Service?

Simplifying UBO Filing in the UAE!

Peace of
Mind

Partnering with NOW Consultant for your UBO needs means you can focus on growing your business, confident in the knowledge

Customer Satisfaction

We prioritize customer satisfaction and work tirelessly to ensure that our clients are happy with the services we provide.

Timely
Support

Our team is available to provide timely support and guidance to help you navigate the complexities of ESR requirements.

Confidentiality

we understand the sensitivity of financial information. We ensure that all information provided to us is kept confidential and secure.

Trusted
Partner

you're choosing a trusted partner who will work with you to ensure your business remains compliant with all necessary regulations.

Important Features and Benefits of UBO Declaration

Features

Benefits

Transparency & Compliance

Ensures adherence to regulatory standards and avoids penalties.

Risk Mitigation

Identifies potential risks associated with complex ownership structures.

Enhanced Due Diligence

Facilitates thorough due diligence in business transactions.

Improved Corporate Governance

Strengthens corporate governance by promoting transparency.

Legal Compliance

Aligns with UAE legal requirements for UBO disclosure.

Building Trust

Establishes trust among stakeholders through transparent practices.

Requirements For UBO Filing in UAE

In the UAE, various regulations govern UBO disclosure, and companies need to familiarize themselves with these requirements to ensure full compliance. The main regulatory framework includes:

1. Disclosure of UBO Information

Under UAE regulations, companies are mandated to disclose accurate and up-to-date information about their Ultimate Beneficial Owners to relevant authorities. This includes details such as full name, date of birth, nationality, residential address, and the extent of their ownership or control.

2. Maintaining UBO Register

Business entities operating in the UAE must maintain a UBO register, containing all pertinent information about their Ultimate Beneficial Owners. The register should be regularly updated and made available for inspection by competent authorities upon request.

3. Nominee Arrangements and Trusts

Nominee arrangements and trusts that could impact the identification of the Ultimate Beneficial Owners are closely monitored by UAE authorities. The true beneficiaries behind such arrangements must be revealed to ensure transparency.

4. Compliance and Reporting Obligations

Companies in the UAE are obligated to comply with UBO regulations and submit accurate reports to the relevant authorities. Failing to fulfill these obligations can lead to severe penalties, fines, or even suspension of business operations.

Non-Compliance with UBO Regulations

If you are non-compliant with UBO regulations in Dubai, you face serious consequences which involve

Accounting and Tax Advisory Firm in UAE - Nowconsultant

See What Makes Our Clients Happy?

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Sheikh Zameer CEO Gautam Real Estate LLC

Highly recommended services. Their expertise and attention to detail ensured a smooth process, and we are now confidently compliant.

ultimate beneficial ownership expert
Hamid Faizan Managing Director Khan Enterprises

Their team's professionalism and efficiency were impressive, providing us with valuable insights into our ownership structure.

Ubo declaration expert example
Richard Mick Accountant at Apex LLC

Their UBO declaration services are top-notch. They not only ensured compliance but also demonstrated a deep understanding of legal nuances.

Frequently Asked Questions

Entities such as companies, partnerships, and trusts operating in the UAE are required to submit UBO declarations. Individuals holding significant ownership or control positions in these entities must be identified.

Yes, a company in the UAE can have multiple Ultimate Beneficial Owners. In cases where multiple individuals or entities hold substantial ownership interests or have significant control over the company, all of them would be considered Ultimate Beneficial Owners and must be disclosed as part of the UBO verification requirements.

Yes, Now Consultant tailors its UBO declaration services to accommodate the unique requirements and regulations of different industries, ensuring precise compliance.

Now Consultant stands out through its expertise, personalized approach, and commitment to staying updated with evolving UBO regulations, providing clients with reliable and comprehensive assistance.

The time required to identify UBOs depends on the size and complexity of the company. However, we aim to provide efficient and timely services to all our clients.

Yes, Now Consultant can assist in gathering historical UBO data, ensuring comprehensive compliance, and addressing any gaps in previous reporting.

While UBO information is shared with regulatory authorities for compliance, Now Consultant ensures confidentiality within the bounds of legal requirements, safeguarding client information

UBO declarations are not a one-time process. They need to be updated regularly, especially when there are changes in ownership or control. Compliance requires ongoing monitoring and reporting

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