Save Yourself From Hefty Penalties! Everything You Need To Know About UBO - Marque way

Save Yourself From Hefty Penalties! Everything You Need To Know About UBO

June 29, 20210

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Save Yourself From Hefty Penalties! Everything You Need To Know About UBO

Are you managing a business in the UAE?

You might be multitasking so many things. Apart from keeping your business going, you need to stay updated with the constantly changing legal system. As the UAE is introducing new regulations in the commerce sector, you must keep a check on daily news!

Complying with laws is essential if you want to scale up your brand’s reputation. At the same time, adhering to commercial laws can save you from heavy fees and penalties. With the latest UBO regulations, you must ensure the timely submission of all crucial data. If you are confused about the new regulations, here’s all you need to know! 

What is UBO?

UBO stands for Ultimate Beneficial Ownership. It refers to the person who holds control and ultimately benefits from profits in a company. Such a person holds a minimum of 25% voting rights in the company. The UBO is one of the company’s major driving forces that regulate business.

Recently, UBO regulations have been modified to keep a stringent check on money laundering and other illegal activities in the country. The UBO regulations apply to both businesses in the mainland as well as offshore offices. Under the latest regulations, companies need to submit vital data regarding the UBO to bring transparency in business operation. 

Article 17 under the UBO laws now state that hefty penalties can be levied from the company that submits incomplete data or misinformation. Further, the Ministry of Economy can charge you a fee of up to AED 100,000 if UBO disclosures aren’t completed by 30th June 2021. 

Mandatory Disclosures Under The Law

All companies need to maintain a well-updated register of company records. This includes a register of shareholders, a register of real beneficiaries and nominee directors. These registers also contain the following details of the beneficiary: 

  • Name in Full
  • Nationality
  • Date and Place of Birth
  • Full Residential Address
  • Passport and Identification Details
  • Date When the Person Becomes a UBO
  • Date When the Person Ceased to be a UBO

At the time of registration of any company, all such details must be submitted to the DED and other regulatory bodies. Along with all details of beneficiaries, the Memorandum of Association must be approved before your business finally comes on paper. 

Also, all the details must be revised whenever a change happens within the management. Within 15 days of any fundamental changes in the organisation, disclosures must be made to the registrar. Thus, keeping them updated whenever a change is made.   

How To Comply With the Law and Avoid Penalties?

In Dubai’s legal system, companies especially set up by expatriates must comply with all mandates. This is essential to not only keep a good track record but also to gain the trust of local networks. Moreover, any kind of offences can lead to your business license suspension for up to one year. 

So, to simplify the process for you, here are some key points that help you better understand the UBO laws: 

  • Create a register with all crucial details of your company’s UBOs. In the same register, keep updating any changes in shareholding or management of your firm. Alongside, upload revised documents and licenses. This register can then be submitted to authorities at the time of legal declarations. 
  • You must submit an undertaking to back the authenticity of UBO data. This must be approved by authorities to understand your company’s organisational structure. All such processes can be easily completed online without much hassle. 
  • Stay updated with your licensing authority and any new regulations. Often, you can find most news updated on official portals. So, keep all your UBO data updated and avoid any additional penalties. 
Take Wise Steps To Avoid Large Penalties

Effectively managing your business can get you a long way and save you from hefty fees. By simply filling in your details on time and complying with laws, you can garner the trust of local bodies. 

At the same time, sticking to timelines and corporate updates are extremely important. So, make sure you pay keen attention to detail while completing all legal procedures. Our industry experts at Marqueway are here for you. Get in touch with us and simplify your UBO processing!

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Copyright by Marqueway