A Guide to the Ultimate Beneficial Owner in UAE | UBO Regulations 2025

For businesses operating in Dubai and across the UAE, compliance with regulatory frameworks is a crucial aspect of ensuring smooth operations and avoiding penalties. One of the most important requirements introduced in recent years is related to the Ultimate Beneficial Owner UAE (UBO). Understanding these rules is critical for entrepreneurs, investors, and established businesses alike.

In this detailed guide, we will explore UBO regulations UAE PDF, the cabinet decision no (109) of 2025 on regulating the beneficial owner procedures, earlier resolutions such as cabinet decision no. (58) of 2020 regulating the beneficial owner procedures, and essential compliance requirements like the UBO declaration UAE deadline.

What is the Ultimate Beneficial Owner in UAE?

The Ultimate Beneficial Owner UAE refers to the individual who ultimately owns or controls a company, either directly or indirectly. This is typically the person who holds a significant percentage of shares, voting rights, or exercises ultimate control over decision-making in the company.

For example, in an ultimate beneficial owner example, if Company A is owned by Company B, but an individual owns 70% of Company B, that person would be considered the UBO of Company A. The rules ensure transparency and accountability, preventing illegal activities such as money laundering or tax evasion.

Key UBO Regulations in UAE

To strengthen corporate transparency, the UAE government has introduced several laws and cabinet decisions over time.

Cabinet Decision No. (58) of 2020 Regulating the Beneficial Owner Procedures
This was the first major step towards defining rules for disclosing UBO information. It required companies to maintain accurate registers of beneficial owners and submit this information to the relevant licensing authorities.

Cabinet Resolution No. (109) of 2025
The latest update came with the cabinet decision no (109) of 2023 on regulating the beneficial owner procedures. This new resolution enhances earlier requirements, aligns UAE regulations with global standards, and introduces stricter penalties for non-compliance.

These UBO regulations UAE PDF documents are often available on government portals, offering complete details for business owners to review and implement.

Why Are UBO Regulations Important?

The introduction of the Ultimate Beneficial Owner UAE regulations is part of the country’s efforts to strengthen corporate governance and align with international compliance frameworks. Here’s why they matter:

• Transparency: Identifying UBOs prevents companies from being used for fraudulent activities.

• Compliance: Businesses that fail to submit accurate UBO information risk penalties.

• Banking & Finance: Banks require UBO details when opening corporate accounts.

• Investor Trust: Clear ownership structures build investor confidence.

UBO Declaration UAE Deadline

One of the most critical aspects of compliance is meeting the UBO declaration UAE deadline. Companies are required to declare and maintain up-to-date records of their UBOs with the relevant authority, such as the Department of Economic Development (DED) or free zone regulators.

If there is any change in the beneficial owner, such as the date that the natural person ceased to be a beneficial owner, companies must update their records within a specified timeframe, usually 15 to 30 days depending on the jurisdiction.

Failing to meet the deadline may result in fines, restrictions, or suspension of business activities.

Maintaining UBO Registers

Every company must maintain two important registers:

• Register of Ultimate Beneficial Owners: Listing individuals who directly or indirectly own/control the company.

• Register of Nominee Directors/Managers: If applicable, to disclose persons acting on behalf of others.

These registers must be accurate, regularly updated, and available for inspection when requested by authorities.

Cabinet Resolution No. 109 of 2025 – What’s New?

The cabinet resolution no. 109 of 2023 strengthens corporate compliance by:

• Expanding reporting obligations.

• Clarifying definitions of ownership and control.

• Increasing penalties for companies that fail to comply.

• Aligning local laws with international anti-money laundering (AML) standards.

Companies must ensure their UBO information is always updated to avoid hefty fines.

Ultimate Beneficial Owner Example in UAE

To better understand the concept, let’s look at an ultimate beneficial owner example:

• Company X is owned by Company Y.

• Company Y is owned 80% by Individual Z.

Although Individual Z does not directly own shares in Company X, they are the ultimate beneficial owner because they control Company Y, which owns Company X.

This illustrates how UBOs may not always be the direct shareholders but still hold controlling rights indirectly.

Compliance for Mainland vs Free Zone Companies

Whether your company is registered in DED Dubai (mainland) or in a free zone such as DMCC, JAFZA, or DIFC, UBO regulations apply equally. Each licensing authority has its own online portal where companies can submit UBO details, often with downloadable forms or UBO regulations UAE PDF resources for guidance.

How Quick Biz Business Setup Services LLC Can Help

Navigating UBO compliance can be overwhelming, especially for first-time entrepreneurs or foreign investors. At Quick Biz Business Setup Services LLC, we specialize in guiding businesses through these requirements. Our services include:

• Assistance with preparing UBO registers.

• Guidance on UBO declaration UAE deadlines.

• Support with free zone and mainland submissions.

• Access to UBO regulations UAE PDF resources.

• Ensuring compliance with cabinet resolution no. 109 of 2025 and earlier decisions like cabinet decision no. (58) of 2020 regulating the beneficial owner procedures.

👉 Visit us at https://www.quickbusinesssetup.com/ to learn more.

Final Thoughts

The Ultimate Beneficial Owner UAE regulations are designed to create a transparent and trustworthy business environment. Whether you’re starting a company or managing an existing one, understanding UBO rules, deadlines, and compliance requirements is essential.

From reviewing the UBO regulations UAE PDF to keeping track of when the date that the natural person ceased to be a beneficial owner, businesses must stay proactive to avoid penalties. With new frameworks like the cabinet decision no (109) of 2023 on regulating the beneficial owner procedures, compliance has become stricter but clearer.

By working with experts such as Quick Biz Business Setup Services LLC, you can ensure your business remains compliant, confident, and positioned for growth in Dubai and the UAE.