Ultimate Beneficial Owner Rules in the UAE

Who is a beneficial owner

A beneficial owner is anyone who owns or exercises ultimate control over the company through 25% or more of its capital, directly or indirectly, or 25% or more of the voting rights, including through a chain of ownership, or who controls it by other means such as appointing most directors. If no one meets the test, the person who exercises control by other means is recorded, and failing that, the senior manager.¹

What the company does

• Creates the register within 60 days of its establishment and keeps it up to date.
• Records any change within 15 days of learning of it.
• Keeps a register of partners or shareholders, including those acting as trustees or nominee directors.
• Submits the beneficial owner and shareholder registers to the registrar of its licensing authority within 60 days of licensing, and names a natural person resident in the UAE as its contact.
• Companies wholly owned by the federal or local government and companies in the financial free zones (DIFC and ADGM) are outside the decision.

Source: UAE Ministry of Economy and Tourism: Cabinet Decision No. 109 of 2023 on beneficial owner procedures¹