28 October 2020
Beneficial Owner Procedures - Cabinet Decision No. 58 of 2020 Uncertainties and Clarifications
Beneficial Owner Procedures - Cabinet Decision No. 58 of 2020
Beneficial Owner Procedures Regulation has been introduced in UAE vide Cabinet Decision No. 58 of 2020, on 24 August 2020. Beneficial Owner Procedures Regulation came into effect on 27 August 2020.
Since very little was known about it initially, there were uncertainties as to where will the details be filed, how are the same to be filed, and most important the deadline for the Beneficial Owner Details filing.
However, since the beginning of October 2020, the Licensing Authorities have been very active and have started communicating in the context of Beneficial Owner Regulations via their websites, Twitter handles, and even directly to the stakeholders. It is now clarified that the details for the Beneficial Owner will be required to be filed with respective Licencing Authorities and in the format provided by them unless otherwise conveyed.
As regards the deadlines for Beneficial Owner details filing, based on the details available in the public domain as on 27 October 2020, the following Authorities have issued the deadlines and details regarding the mode of filing:
| Sr. No | Licensing | Due Date | Mode of Submission | Portal, Link, or Email |
|---|---|---|---|---|
| 1 | Dubai Silicon Oasis | 27-Oct-20 | Email to DSOA Licensing | Lic_section@dso.ae |
| 2 | Hamriyah Free Zone | 28-Oct-20 | Via e-portal | HFZA Portal |
| 3 | Ajman Free Zone | 31-Oct-20 | Via e-Portal | Ajman Free Zone Portal: Services- Company Services - Ultimate Beneficial Owner AFZ Portal |
| 4 | Dubai DED | June 15, 2021 | Service Centers | DED Portal |
| 5 | Fujairah Creative City | 27-Oct-20 | ubo@ccfz.ae ccfz@creativezone.ae | |
| 6 | SAIF Zone | Not Specified | Via e-portal | SAIF Zone Portal |
| 7. | Ras Al Khaimah Economy Zone (RAKEZ) | Not Specified | Via Portal | RAKEZ |
| 8. | Dubai Development Authority (DDA) | 27.10.2020 | Via e-Portal | DDA |
| 9 | Um AlQuwain Free Trade Zone | May 31, 2021 | Portal | UBO Um AlQuwain Free Trade Zone |
| 10 | Dubai Multi Commodities Centre | Not Specified | Via e-Portal | DMCC Form |
| 11 | Media Zone Authority (MZA) | Not specified | Via e-Portal | |
| 12 | Dubai Aviation City Corporation (DACC) | Not specified | license@dacc.ae | |
| 13 | JAFZA | June 5, 2021 | Via e-portal | JAFZA UBO |
Over and above the above-mentioned Free Zones, the Department of Economic Development (‘DED’) has released the Decision Text and Statement of Identification of Beneficial Owner Data on its website, which can be accessed at https://dubaided.gov.ae/laws_and_regulations/en. As per the Statement, the Legal Person is required to submit the following details in connection with the Beneficial Owner Procedures:
| Sr. No. | Particulars | Remarks |
|---|---|---|
| 1. | Full name as per the identity card or passport (Attach a true copy of valid identity card or passport) | This will be required for each individual beneficial owner and can be extracted from his Passport |
| 2. | Nationality, Date and Place of Birth | As per Passport |
| 3. | Country of issuance, date issuance and expiry date of the identity card or passport | As per Passport |
| 4. | Residential address or the address which the notices shall be sent on it. | To be confirmed with the Beneficial Owner |
| 5. | Name of the entity and address thereof. | |
| 6. | Identification of the Beneficial Owner capacity in the Legal Person who owns 25% or more, basis and date on which the person became a Beneficial Owner of the Legal Person. The following shall be observed: | |
| 6a. | Ultimate ownership or control of the Beneficial owner, whether directly through a chain of ownership, control or by other means of control such as the right to appoint or dismiss the majority of Directors of the Legal Person. | Ownership whether direct or indirect |
| 6b. | Determination of a ratio of the capital of the Beneficial Owner, his shares and its nominee value. | Percentage/share of capital and its value |
| 6c. | In the event, if the Beneficial Owner and more natural persons jointly own or control a ratio of capital in the Legal Person, all of them shall be deemed as jointly owners or controllers of such ratio | Joint ownership, mention ratio of ownership of all individuals |
| 7. | Disclosure of the number of other legal persons which the Beneficial Owner owns manages or controls accordingly | No. of entities the Beneficial owner owns, manages or controls |
| 8. | In the event, if where no natural person is identified in accordance with the abovementioned, the natural person who holds the position of a higher management official or who controls the Legal Person by other means of control such as the right to appoint or dismiss the majority of Directors of the Legal Person shall be deemed as the Beneficial Owner. | If no Natural Person identified, details of higher management official or deemed beneficial owner to be submitted |
With regard to Beneficial Owner Filing, it is noticed that the Authority has written emails to certain Stakeholders asking to submit further details as under:
• Copy of the Memorandum of Association • Copy of the Commercial License • Copy of the Commercial Register • In case of LLC - An Official letter signed and stamped by the company stating the names of the correct real partners and that the company bears legal responsibility for the registered data. • **In case of public/private joint-stock company -**An official letter signed and sealed from the company stating the names of the correct members of the board of directors and that the company shall bear the legal responsibility for the recorded data. • In the case of foreign & GCC companies(branches of GCC and foreign companies or a legal partner of a company outside the country) – All the documents must be certified and sealed by the UAE embassy in the country of the main company and by the Ministry of Foreign Affairs in UAE and translated into Arabic.
Fees:
In the mail, the authority also mentioned of levy of a transaction fee of AED 15 and that the documents may be submitted at any of their service centres.
Now that the Beneficial Owner Procedures has gained popularity and has come in limelight, it is anticipated that every Authority shall issue their own formats, mode of filing and deadlines within few days. It is, therefore, recommended that every Legal Person should keep the details ready to avoid violation of deadlines.
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@claemirates.com CA. Dhara Yagnik, Manager – Audit & Taxation M: +971565956836 E: dhara@claemirates.com
Purvi Mehta, Asst. Manager – International Taxation M:+971522800480 E:purvi@claemirates.com
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