Who is a Real Beneficiary under UAE law?
A Real Beneficiary, often called the ultimate beneficial owner, is the natural person who ultimately owns or controls a legal entity. Under Cabinet Resolution No. 109 of 2023, which regulates real beneficiary procedures in the UAE, this is the individual who ultimately owns or controls the legal person, directly or through a chain of ownership or other indirect means.
The main test is ownership or control of at least 25 per cent of the entity’s capital, or holding 25 per cent or more of the voting rights, whether directly or indirectly. A person who has the right to appoint or dismiss the majority of the directors or managers also qualifies. If no natural person meets these tests, the real beneficiary is the person who otherwise exercises control by other means, and as a final fallback, the natural person responsible for the entity’s senior management.
Companies must identify their real beneficiaries, maintain a Real Beneficiary Register with the required details, and file that information with the relevant registrar. Keeping this data accurate and current is a core transparency obligation supporting the UAE’s AML framework.
Legal Reference (UAE):
· Cabinet Resolution No. 109 of 2023 on Real Beneficiary Procedures, Article 1 and related provisions — define the Real Beneficiary and the 25 per cent ownership or control test.
For more details, consult the full text of Cabinet Resolution No. 109 of 2023 or seek guidance from your AML compliance officer.
The complete guide to ultimate beneficial owner verification