What is an Ultimate Beneficiary Owner?
An ultimate beneficiary owner, or UBO, is an individual who, directly or indirectly, owns or controls more than 25% of the share capital of a company, or who exercises control over that company.
If you are a UBO, it is your responsibility to ensure that your information is listed correctly on any and all public registers in Dubai. This means that if you do not list yourself as a UBO when you need to be, you could end up paying penalties.
This also means that if you ARE listed as a UBO when you shouldn’t be, the results could be detrimental. The penalties for being incorrectly registered as a UBO are hefty: a nine-month prison sentence and/or a fine of up to AED 500,000.
Why should you register your company with the Dubai Economic Department? The answer is simple: to access some of the world’s most luxurious and celebrated infrastructure. You’ll be among the same skyscrapers and waterways that have been ranked as some of the most innovative structures in the world. And, in fact, this is why you’ll want to make sure you’re in compliance with all of their regulations, too.
UAE corporate law requires all companies to register with the Dubai Economic Department (DED), including offshore companies. The DED makes sure that companies are operating in accordance with UAE laws and regulations and are meeting their financial obligations. Registration is not a complicated process: it is simply a matter of providing proof of identity (passport or national ID) as well as proof that you own at least 51% of your company’s shares. This can be done through a bank statement or an affidavit stating that you are the sole owner of your company’s shares. In some cases, a copy of your company’s commercial license or registration certificate issued by the Dubai Economic Department may also be required.
Leave a Reply