What is Beneficial Owner in UAE and How to Register
The UAE’s Department of Economic Development (DED) has recently updated its regulations regarding business structures and the required documents for businesses operating in the UAE. One of the key updates concerns the process of becoming a valid Beneficial Owner of your business license. But what exactly does it mean to be a Beneficial Owner in the UAE?
Understanding the Beneficial Owner Procedure in Dubai
A Beneficial Owner is defined as:
- A Natural Person who directly or indirectly controls or owns a Legal Entity (e.g., business or company) through a hierarchy or other indirect means.
- A Natural Person on whose behalf business transactions are conducted, or who has complete control over a Legal Entity.
- A Natural Person who directly or indirectly holds 25% or more equity shares in a business.
How to Register as a Beneficial Owner in the UAE
To register as a Beneficial Owner, businesses must submit specific documents to prove ownership and control over the company. This is a mandatory step for business licenses in the UAE.
Documents Required for Beneficial Owner Registration
- Full Name
- Gender
- Passport Number
- Date of Birth
- Residence Address
- Nationality
- Mobile Number
- Emirates ID
The form must be acknowledged and submitted by the company’s legal representative—typically the director or authorized signatory of the company.
Steps to Submit Your Beneficial Owner Acknowledgement
You can submit your Beneficial Owner details via various channels. Below are the methods you can use to complete the process:
1. Through Outsourced Service Centers
Before making any payment related to your license, you will receive a text message with a link to submit your Beneficial Owner information. Visit the nearest outsourced service center and follow the instructions for easy submission.
2. License Renewal via Text Message to 6969
When renewing your business license, send a text message to 6969. You’ll receive a link containing instructions to fill out your Beneficial Owner details. Once the identity is verified, the license renewal process will continue seamlessly.
3. Via Dubai Economy’s eServices
Log into the Dubai Economy eServices portal at https://eservices.dubaided.gov.ae. After registration, select your business license and update or add your Beneficial Owner details directly from the portal.
4. Using the DED Business App
The DED Business App offers a convenient option for submitting your Beneficial Owner details. You will receive a link via text message to enter your data, similar to the process through outsourced service centers.
How to Modify Beneficial Owner Information
If you need to modify or update your Beneficial Owner details, you can request this through the same channels mentioned above:
- Service Centers
- Dubai Economy eServices Portal
- DED Business App
This process ensures your Beneficial Owner data is up-to-date and accurately reflected in your business records.
Important Notes about Beneficial Owner Data in Dubai
- Only the legal representative (e.g., company director or owner) can submit the Beneficial Owner data.
- Registration is mandatory for all businesses in the UAE, including free zone companies. Public shareholding companies and businesses fully owned by the government are the only exceptions.
- Beneficial Owner registration applies to all types of business activities—whether professional, commercial, industrial, tourism, etc.
- All businesses holding a commercial license must be registered with the Dubai Economic Department.
- Non-residents and foreign owners are also required to register as Beneficial Owners, even if they have not entered the UAE previously.
- The Beneficial Owner doesn’t need to own or control shares directly in the company. However, the Beneficial Owner must hold a senior or managerial position within the company, especially in cases where they cannot be directly identified through equity ownership.
Key Takeaways
- No Age Limit: There’s no specific legal age for submitting Beneficial Owner data.
- Control over Multiple Entities: A Beneficial Owner can control multiple companies, including foreign branches, through a holding structure.
- Mandatory Registration: Regardless of company size or structure, all businesses (except for specific exceptions) must register their Beneficial Owner information.
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