In recent years, the UAE has taken significant steps to enhance corporate transparency and anti-money laundering compliance. One of the most important developments has been the introduction of the Ultimate Beneficial Owner (UBO) Regulations.

If you own or manage a company in Dubai, understanding and complying with UBO regulations is crucial to avoid heavy fines and ensure smooth business operations.

In this article, we’ll explain what UBO regulations in Dubai are, who they apply to, the reporting requirements, and how businesses can stay compliant.

What is a UBO (Ultimate Beneficial Owner)?

A UBO (Ultimate Beneficial Owner) is the natural person who ultimately owns or controls a company, either directly or indirectly, regardless of how many layers of ownership exist.

According to UAE law, a UBO is defined as an individual who:

• Owns 25% or more of a company’s shareholding (directly or indirectly), or
• Has the right to appoint or dismiss directors, or
• Exercises significant control over the company’s decisions or operations.

If no individual meets the above criteria, the UBO is considered the person who has senior management responsibility.

UBO Regulations in the UAE

The UAE introduced UBO regulations under Cabinet Resolution No. 58 of 2020 on the Regulation of Beneficial Owner Procedures.

These rules were implemented to:

• Improve transparency of company ownership.
• Prevent money laundering, terrorism financing, and tax evasion.
• Align the UAE with FATF (Financial Action Task Force) international standards.

Who Must Comply with UBO Regulations in Dubai?

The UBO regulations apply to all companies registered in the UAE, including mainland and free zone companies, except for:

• Companies incorporated in the UAE’s financial free zones (DIFC and ADGM), which have their own rules.
• Companies that are wholly owned by the UAE government.

UBO Compliance Requirements in Dubai

Every company in Dubai must maintain and submit the following registers:

1. UBO Register

• Contains details of the ultimate beneficial owner(s), including:
  • Full name, nationality, and date of birth
  • Place of residence or address
  • Passport or Emirates ID copy
  • Percentage of ownership or control

2. Shareholders Register

• Includes the details of all shareholders (individuals or entities), along with their ownership percentage.

3. Nominee Directors Register

• If applicable, the company must disclose any nominee directors acting on behalf of someone else.

4. Filing with Authorities

• Companies must file UBO details with their relevant licensing authority (e.g., DED for mainland or respective free zone authority).
• Updates must be submitted within 15 days of any change in ownership or control.

Penalties for Non-Compliance with UBO Regulations in the UAE

Failure to comply with UBO requirements can lead to severe consequences, including:

• Financial penalties ranging from AED 50,000 to AED 100,000
• Suspension of trade license
• Restrictions on business activities
• Increased scrutiny from authorities

Maintaining accurate UBO records is not optional — it is a legal requirement.

Why UBO Compliance Matters

Complying with UBO regulations helps your business by:

• Ensuring transparency and credibility with regulators, banks, and investors.
• Avoiding fines, penalties, and license suspensions.
• Building trust with international partners.
• Supporting the UAE’s efforts in combating financial crime.

How Falcon Law Can Help with UBO Compliance

At Falcon Law, we assist businesses in Dubai with:

• Preparing and maintaining UBO registers.
• Identifying indirect ownership structures.
• Submitting UBO filings to the relevant authorities.
• Ensuring full compliance with AML (Anti-Money Laundering) laws and UBO requirements.

Our team of corporate lawyers in Dubai ensures that your business remains fully compliant while you focus on growth.

Final Thoughts

The Ultimate Beneficial Owner (UBO) regulations in Dubai are a key part of the UAE’s push for transparency and compliance with global standards. Every business operating in Dubai — whether mainland or free zone — must maintain and file accurate UBO information to avoid penalties.

If you are unsure about your obligations, working with a professional corporate lawyer in Dubai ensures compliance and peace of mind.

Contact Falcon Law today for expert legal assistance with UBO compliance in Dubai.