File the Details of its Beneficial Owners Before the Due Date

Beneficial Owner Procedures / UBO – Adhering the Deadlines

Beneficial Owner Procedures Regulation commonly known as UBO was introduced in the UAE vide Cabinet Decision No. 58 of 2020, on 24 August 2020. Beneficial Owner Procedures Regulation came into effect on 27 August 2020. As per the Regulation, the details of Ultimate Beneficial Owner (UBO) are supposed to be filed by the existing Legal Person within 60 days of the promulgation of the decision i.e. by October 27, 2020.

However, the Licensing Authorities have issued their own deadlines to be adhered to comply with Beneficial Owner Procedure Regulations. Therefore, to ensure compliance, one needs to consider the deadline issued by the licensing authority with whom it is registered. Few Licencing Authorities (listed hereunder) have issued deadlines for submission of details:

Declaration of Ultimate Beneficial Owner - Due Date and Mode of Submission with various Licensing Authorities

Though, we have crossed the deadline for some of the Licensing Authorities, as of now no penal provisions have been initiated by any of the Authorities. All Legal Persons are allowed and is recommended to submit the details at their earliest.

DED Regulations:

It is to be noted that each Licensing Authority has its own standardised set of requirements. For example, the Department of Economic Development (‘DED Dubai’) released the Form in respect of details to be submitted. However, it has separately mailed its customers to file the Form (and submit the supporting documents) physically at its Service Centres. They have not mentioned any specific deadline for submissions. Further, when inquired over the phone, they have also clarified that only those entities whose “Beneficial Owners” are Corporates are required to file the details. The legal Person which is owned by an Individual is not required to file the Ultimate Beneficial Owner (UBO) details.  

JAFZA Regulations:

On the other end, JAFZA had intimated its customers to file the details by December 31, 2020. While we are writing this, we understand that JAFZA has withdrawn the "Beneficial Owner" form from its Dubai Trade Portal and have indicated that they are enhancing the service and would notify the new deadline and availability of service.

As per the old form, the details are to be filed by all the Legal Person irrespective of whether the beneficial owner is an individual or corporate by login to its portal http://eservices.dubaitrade.ae/. 

Though it did not mention of submission of any supporting documents apparently, the announcement specifies that the documents and records should be made available when asked for. 

Further, JAFZA form was detailed. It connected the details of ESR as well.  It was divided into 5 Sections:

• Company Details
• Section A: Ownership and Control Arrangements
• Section B: Business Model
• Section C: General (Financial)
• Section D: General (bank name) 

On telephonic inquiry, we understand that Legal Person also needs to submit a notarized and attested copy of an official document from the registrar confirming the ultimate beneficiary of the company. In case attestation takes time, a normal copy can be submitted with the registered agent letter conforming that the attested original will be submitted once ready.

We now await the portal to open for filing the details of Ultimate Beneficial Owner.

DAFZA Regulations

Further, DAFZA has set a deadline of 28 December 2020 for Submissions of details of the Beneficial Owner. DFZA provides a specific exemption from complying with UBO Regulations when the shares of the Entity or its ultimate holding company are listed on a UAE stock exchange or foreign stock exchange which is subject to transparency and disclosure requirements, such as the London Stock Exchange (LSE), or the New York Stock Exchange (NYSE). 

DAFZA Beneficial Owner details form and copies of the supporting documents must be submitted online by using DAFZA’s CRM portal. (Login into the CRM portal -> Services -> Licensing Services -> UBO, Share Holders, Directors, Managers & Officers Declaration Forms)
DAFZA has also mentioned that the support as required under the Regulations must be made available within 3 business days, whenever asked for an inspection.

Way Forward to Beneficial Owner Procedures

One needs to remember that Filing of Forms as stipulated by the Licencing Authorities is not the only requirement of the Beneficial Owner Procedures Regulation of the UAE. A legal person is also required to maintain the following Registers and update them, as stipulated in Article 6 of the Regulation:

• Beneficial Owner register, 
• Nominee Directors/manager register and 
• Shareholders Register 

It is also advisable to notify the Beneficial Owner and keep the confirmation, in case the details have not been directly received from the Beneficial Owner.

You may contact us for any further information regarding the matter.  

For more information & Support for Beneficial Owner Procedures:

CA. Manu Palerichal, CEO & Partner
M: +971502828727 
E: manu@emiratesca.com

Purvi Mehta, Asst. Manager – International Taxation
M: +971522800480
E: purvi@emiratesca.com