Declaration of Ultimate Beneficial Ownership (UBO) in UAE
Ultimate Beneficial Ownership (UBO) Declaration Services in the UAE
UBO Register Maintenance, Declaration Filing, and Compliance Support for UAE Companies
Under Cabinet Resolution No. 58 of 2020 on the Regulation of Real Beneficiaries, all companies registered and licensed in the UAE are required to identify their ultimate beneficial owners, maintain UBO registers, and submit the required declarations to the relevant licensing authorities.
Farahat & Co. helps businesses meet their UBO obligations accurately and on time from initial declaration filing through to ongoing register maintenance and compliance support.
What is a UBO Declaration in the UAE?
A UBO declaration is a formal submission identifying the individuals who ultimately own or control a company. Under UAE regulations, a beneficial owner is defined as any individual who:
- Holds 25% or more of the company’s equity or voting rights directly or indirectly
- Exercises control through other means, such as the power to appoint or remove the majority of the board of directors, or through dominant influence over the company’s decisions
If no individual meets the ownership threshold, the person exercising effective control over the company is treated as the UBO.
Companies must file UBO declarations with their relevant licensing authority such as the DED or applicable free zone authority — and maintain accurate, up-to-date registers at all times. For new entities, filing is required at the point of registration or incorporation. For existing entities, the obligation applies on an ongoing basis.
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What Does UBO Filing Require?
UAE-registered companies are required to maintain three formal registers and submit their details to the relevant registrar:
UBO Register A register identifying all ultimate beneficial owners individuals holding a minimum of 25% in the company directly or indirectly, or those exercising effective control where no individual meets the shareholding threshold.
Directors or Managers Register A register of the company’s directors or managers, including those acting on the instructions of third parties.
Partners or Shareholders Register A register detailing the ownership interests held by each shareholder or partner, including voting rights and any other information required by the relevant authority.
Additional requirements:
- Companies must identify every beneficial owner and specify the nature and extent of their interest
- The DED and other licensing authorities will not proceed with registration, licence renewal, or amendment unless the required UBO declaration has been properly filed
- Existing companies must provide UBO information to the Registrar of Companies — including business name, legal form, Memorandum and Articles of Association, registered address, and senior management details
Avoid Hefty Penalties: Stay Compliant with UAE Beneficial Owner Disclosure Regulations
Failure to abide by any obligation set out in the Beneficial Owners Procedures Regulations can attract several liabilities for a company and its officers. In certain cases, the beneficial owners and shareholders will also be penalized for default, and daily penalties can continue accruing if the default continues.
Our team will help you avoid committing the following violations:
- Failure to keep records of the company’s beneficial owners.
- Late submission or failure to provide information to the Registrar of Companies regarding changes in company beneficial ownership.
- Failure to provide a Registrar of Companies declaration containing information about the company’s beneficial owners.
- Failure to obtain and hold adequate, updated, and accurate information concerning beneficial owners for six months after the regulations were published.
Take note: Any shareholder, officer, or company beneficial owner who recklessly or knowingly makes a declaration, statement, or otherwise gives the Registrar false, deceptive, or misleading information will be liable for a criminal offense that’s punishable by law.
Officers of a business operating in the UAE that fails to maintain records of ultimate beneficial owners will be exempt from any liability if there is sufficient proof shown for compliance with provisions, carrying out their due diligence, and proof that the default wasn’t attributable to any negligence, omission, or act on their part.
Any changes to information that are contained in authorities’ registers are to be reported within fifteen days from the date changes were enforced. With regards to companies that are under liquidation or dissolution, appointed liquidators must provide true copies of updated UBO registers to the Registrar of Companies within thirty days from the appointment of the liquidators.
How Farahat & Co. Can Help with UBO Compliance
Farahat & Co. provides end-to-end UBO compliance support for UAE businesses — from initial declaration filing through to ongoing register maintenance and regulatory updates.
Our services include:
- Assessment of ownership structure to identify all UBOs in line with UAE regulatory definitions
- Preparation and filing of UBO declarations with the relevant licensing authority
- Establishment and maintenance of UBO, Directors, and Shareholders registers
- Timely updates to registers and declarations when ownership or control changes occur
- Support at the time of incorporation, licence renewal, and company amendments
- Guidance on additional information requirements that may be requested by the Registrar
- Ongoing advisory to ensure continued compliance as regulations evolve
Frequently Asked Questions
What is a UBO in the UAE?
Is UBO registration mandatory in the UAE?
What registers must UAE companies maintain under UBO regulations?
When must changes to UBO information be reported?
What are the penalties for UBO non-compliance in the UAE?
What information is required in a UBO declaration?
Does UBO compliance apply to free zone companies?
What happens to the UBO register when a company is liquidated?
Can Farahat & Co. assist with UBO declaration and register maintenance?
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