In line with global efforts to enhance financial transparency and combat money laundering, the UAE requires all registered companies to declare their Ultimate Beneficial Owners (UBO). A UBO is the natural person(s) who ultimately owns or controls the company, typically defined as someone holding 25% or more of the shares or voting rights, or who otherwise exercises significant control. This regulation applies to nearly all companies, whether on the mainland or in a free zone, making it a critical compliance task for every business owner.
Companies are legally obligated to create and maintain a 'Register of Beneficial Owners' and a 'Register of Shareholders' at their office. This information must also be submitted to the relevant licensing authority. The purpose is to create a clear picture of who truly profits from and controls corporate entities in the UAE. For clients, this means that during the setup process, they must accurately identify and provide documentation for all UBOs. Failure to comply can lead to substantial penalties, making it essential to address this requirement diligently from the outset and keep the register updated with any changes.