Last October, we reviewed the Cabinet Resolution No. 58 of 2020 on the Regulation of Procedures Related to Real Beneficiaries (the Resolution) which was issued on 27 August 2020 and aims to enhance UAE businesses’ transparency.
The Resolution required UAE mainland and free zone companies (excluding those established in the financial free zones – ie DIFC and ADGM and those owned by the Federal Government) to do the following by 27 October 2020:
Since then, the Departments of Economic Development (the DEDs) have stated that they will not proceed with granting approvals for any transactions unless this information has been updated.
The DEDs have advised that a Statement of Identification of the Beneficial Owner Data needs to be submitted to update your beneficial owner records. The format required is an official letter, printed on your company’s letterhead, signed and stamped in Arabic or dual language that confirms the following:
In situations where no person or entity is identified based on the criterion above, the person or entity who holds the position of a higher management official or who controls the company by other means of control – such as the right to appoint or dismiss majority of directors of the company – will be named the Beneficial Owner.
You are required to provide the Registrar with the Statement of Identification of the Beneficial Owner Data letter together with any DEDs applications such as those for incorporation, licencing, registration, renewal, amendments, or any other transactions.
Alternatively, if you're not submitting any DEDs applications in the short-term, we would nevertheless advise you to prepare the letter and submit it directly to the DEDs to ensure obtaining future approvals for transactions can be done smoothly. If the details on your letter change, you must notify the Registrar within 15 days of such amendment.
We can assist with identifying your Beneficial Owners and UBO, and with drafting the required letter for submission to the DEDs. Please get in touch with a member of our Corporate/M&A and Capital Markets or Commercial & Consumer Contracts teams to ensure your company’s compliance.
作者 Julia Ofer 以及 Alisha Rasul