The New Cabinet Decision mandates that companies licensed to carry on business in the UAE maintain a Register of Partners (or Shareholders) and a Register of “Real Beneficial Owners”. A Real Beneficial Owner is defined as the individual that ultimately controls the licensee, whether directly or indirectly, through at least 25% of the company’s capital.
Following the introduction of the UAE’s Economic Substance Registration ,this is another welcome development by the UAE authorities aimed at combating Avoidance of Double Taxation Agreements (DTA) and criminal activity and providing greater transparency to the UAE’s business environment.
Licensees in the UAE are required to have created a Register of Partners (or Shareholders) and a Register of Real Beneficial Owners and each licensee submits the information from its Register of Partners (or Shareholders) and Register of Real Beneficial Owners to its competent licensing authority. The competent licensing authorities are under an obligation to maintain the confidentiality of information submitted to them under the New Cabinet Decision.
The New Cabinet Decision applies to all companies licensed in the UAE, other than Companies in financial free zones (Abu Dhabi Global Markets (ADGM) and Dubai International Financial Centre (DIFC)) and Companies which are directly or indirectly wholly owned by federal or Emirate government which are ultimately listed on a market that provides for robust transparency rules on Real Beneficial Owners.