UAE amends bankruptcy law to cover pandemic situations

UAE amends bankruptcy law to cover pandemic situations

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UAE amends bankruptcy law to cover pandemic situations

On August 24, 2020, the UAE issued Cabinet Resolution No. 58 of 2020 on the Regulation of the Procedures Related to Real Beneficiaries (“Decision”). As a result of the Decision, companies are now required to submit ultimate beneficiary (UBO) information to the Registrar by October 27, 2020 (within 60 days from the date of the Decision or within 60 days from the date of a company’s license issuance, whichever comes first.

The Resolution aims at setting a procedure for the uniform reporting and registration of the ultimate beneficiaries or (UBOs), beneficial interests and, shadow directors in UAE mainland and free zone companies except for companies which are wholly owned by the federal or local government or its subsidiaries or which are registered in  Dubai International Financial Centre and Abu Dhabi Global Market.

All Relevant Entities are required to notify their respective registrar or licensing authority of its shareholders and Real Beneficiaries by October 27, 2020, and thereafter on an ongoing basis.

The decision is to regulate the requirement for corporate entities in mainland UAE and the commercial free zones to maintain registers listing the:

  • physical person to whom the ultimate ownership of a company is devolved or who exercises final control over the relevant company
  • partners or shareholders – companies licensed or registered in mainland UAE and commercial free zones except for companies wholly owned by the federal or local government or its subsidiaries or which are registered in the financial free zones in the UAE (i.e. Abu Dhabi Global Market and Dubai International Financial Centre)

How CRESCO Legal can help:

1. The following key points should be adhered to by the company or individual

  • Nominee Board Members (Article 9)
  • Register of Shareholders
  • Provision of Information to the Registrar
  • Company Names
  • Inforation Confidentiality

2. Take reasonable measures to obtain accurate information and keep the registers up-to-date on a continuing basis and notify the Registrar of any changes to the information provided within 15 days of such change occurring; and

3. Appoint an individual (who is resident in the UAE) with whom the Register can contact in relation to any information provided.

Contact us now to get a guide on the new regulation

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