Unveiling the UBO Declaration in the UAE
Finding the UBO declaration challenging? Let us simplify the process with expert guidance.
As a responsible business owner in the UAE, it is vital to comply with Ultimate Beneficial Owner (UBO) disclosure requirements. While the process may seem complex, our team is here to make it easy. We help you overcome common challenges, ensuring transparency and full compliance.
Why UBO Matters
Understanding your Ultimate Beneficial Owner (UBO) structure is more than just a regulatory requirement—it’s a strategic step to enhance credibility and protect your business from compliance risks. We guide you through the UBO declaration process, clarifying key requirements and simplifying complex regulations for complete transparency.
UBO Regulations in the UAE
UBO Disclosure: Embrace Transparency, Empower Accountability!
The UAE introduced the Ultimate Beneficial Owner (UBO) Regulation in 2020 to enhance transparency in all businesses established in the country. Under this regulation, companies must disclose their ultimate beneficial owners to the Department of Economic Development (DED) promptly. Failure to submit the required information can lead to license issues and service interruptions, making compliance essential for uninterrupted operations.
Who is a UBO?
A Ultimate Beneficial Owner (UBO) is an individual who owns at least 25% of a company and holds voting rights or control over it. Anyone with the authority to appoint or remove the majority of directors and management is also considered a UBO. If no such individual exists, the UBO is defined as a person who exercises significant influence or control over the business.
UBO Disclosure Requirements in the UAE
All licensed businesses in the UAE must submit UBO disclosures, except for entities owned by municipal or federal governments. The Department of Economic Development (DED) requires beneficiary declarations and shareholder registrations along with supporting documents to verify the accuracy of the information. Businesses cannot take corporate actions until their UBO disclosures are complete.
Shared Requirements Between ESR and UBO
Both UBO and ESR regulations require businesses to disclose the identities of their ultimate beneficial owners. Companies must provide accurate and up-to-date information to ensure full compliance with both frameworks.
Common Challenges in UBO Declaration in Dubai
Business owners often face several challenges when fulfilling UBO declaration requirements, including:
Identification Complexity
Navigating complex ownership structures often makes it challenging to accurately identify Ultimate Beneficial Owners (UBOs).
Nominee Structures
Dealing with nominee structures or layered ownership arrangements can obscure the true ownership, making UBO identification significantly more complex and challenging.
Cross-Border Entities
Businesses with cross-border operations often struggle to align with UBO requirements because of varying international regulations and compliance standards.
Updating Information
Keeping UBO information up to date can be challenging, particularly when ownership or organizational structures change.
Privacy Concerns
Balancing the need for transparency with the privacy concerns of UBOs is often a delicate challenge in achieving compliance.
Understanding Regulations
Staying up to date with evolving UBO regulations and meeting jurisdiction-specific compliance requirements can be highly complex.
Why Now Consultant for UBO Declaration Service?
Simplifying UBO Filing in the UAE!
Peace of Mind
Partnering with Quick Digits for your UBO needs means you can focus on growing your business with confidence, knowing that your compliance requirements are in expert hands.
Customer Satisfaction
We place customer satisfaction at the heart of everything we do and work diligently to ensure our clients are fully satisfied with the services we deliver.
Timely Support
Our team is always available to provide timely support and expert guidance, helping you navigate the complexities of ESR requirements with ease.
Confidentiality
We understand the sensitivity of financial information and prioritize its protection. All information you share with us is handled with the highest level of confidentiality and security.
Trusted Partner
By choosing us, you’re partnering with a trusted advisor dedicated to keeping your business fully compliant with all regulatory requirements.
Requirements for UBO Filing in the UAE
In the UAE, several regulations govern UBO disclosure, and businesses must be aware of these requirements to ensure full compliance. The key regulatory framework includes:
Disclosure of UBO Information
Companies in the UAE are required to disclose accurate and up-to-date details of their Ultimate Beneficial Owners (UBOs) to the relevant authorities. This includes information such as full name, date of birth, nationality, residential address, and the extent of ownership or control.
Maintaining a UBO Register
All business entities must maintain a dedicated UBO register that contains complete and accurate information about their ultimate beneficial owners. The register should be regularly updated and made available for inspection by competent authorities upon request.
Nominee Arrangements and Trusts
Nominee arrangements and trusts that may affect the identification of UBOs are closely monitored by UAE authorities. Companies must disclose the true beneficiaries behind such arrangements to ensure full transparency.
Compliance and Reporting Obligations
Businesses are obligated to comply with UBO regulations and submit accurate reports to the relevant authorities. Failure to do so can result in severe penalties, fines, or even suspension of business operations.
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FAQ
Is a Tax Consultant Necessary in Dubai?
With Dubai’s evolving legal and financial landscape, it has become essential for businesses of all sizes to engage a professional tax consultant. Their expertise helps resolve complex tax matters while ensuring full compliance with Dubai’s regulations.
How Do Businesses Pay Taxes in the UAE?
Since June 1, 2023, the UAE has applied a 9% corporate tax on net profits exceeding AED 375,000. Profits below this threshold are taxed at 0%. In addition, businesses must register for VAT if their taxable supplies exceed the mandatory registration threshold of AED 375,000.
What If I Miss a Tax Deadline?
According to Cabinet Decision No. 75 of 2023 and Ministerial Decision No. 74 of 2023, the UAE Federal Tax Authority imposes a fine of AED 10,000 for late corporate tax registration. Continued delays can result in additional penalties, starting from AED 500 per month and rising up to AED 5,000 per month depending on the length of the delay.
What are your tax consultancy fees?
Our tax consultancy services in Dubai start from AED 500 and can go up to AED 20,000, based on the scope and complexity of your requirements.
Can you help with Free Zone company tax compliance?
At Quick Digits, our tax experts assist Free Zone companies with complete tax compliance, including corporate tax registration, filings, and exemption assessments. We ensure your business meets all FTA requirements accurately and on time, covering major Free Zones such as DMCC, IFZA, MEYDAN, SHAMS, and RAKEZ.