Ultimate Beneficial Owner (UBO)
The Cabinet Decision (58) of 2020 “Regulating the Beneficial Owner Procedures” is a law which talks about identification of beneficial owner and preparation and maintenance of various registers to be submitted with the Registrar.
Information required to be submitted with the licensing or registration application:
A Legal person while submitting the licensing or registration application with the registrar will submit the following information with the Registrar:
- Name, legal form and memorandum of association.
- Head office address or the principal address of business and, in case of a foreign Legal Person, the name and address of its legal representative in the State, with a proof thereof.
- Articles of Association or any-other similar documents approved by the Relevant Entity in the State.
- Names of the relevant persons who are holding higher management positions in the Legal Person, providing their data from their passports or identity cards, including such documents’ numbers, issuance and expiry dates and issuing entity.
Identification of Beneficial Owner
Any natural person who ultimately owns or controls, whether directly or through a chain of ownership or control or by other means of control such as the right to appoint or dismiss the majority of its Directors, 25% or more of the shares or 25% or more of the voting rights is identified as the beneficial owner.
Where two or more natural persons jointly own or control a ratio of capital in the Legal Person, all of them shall be deemed as jointly owners or controllers of such ratio.
If no natural person can be identified as the ultimate beneficial owner then the natural person who controls the Legal person by other means of control will be deemed to be the Beneficial owner.
Where no natural person can be identified as the ultimate beneficial owner than the person who holds the position of a higher management official shall be deemed as the Beneficial Owner.
Register of Beneficial Owner
The Register of Beneficial Owner shall include the following data in respect of each Beneficial Owner:
- Full name, nationality, date and place of birth.
2. Residential address or the address which the notices shall be sent on it, by virtue of this Decision.
3. Number of passport or identity card, the country of issuance, date of issuance and expiry.
4. Basis and date on which the person became a Beneficial Owner of the Legal Person.
5. Date on which the person ceased to be a Beneficial Owner of the Legal Person
The register of beneficial owner shall be furnished to the registrar within 60 days of licensing or registration of the Legal person. Further any change or update in the record must be made within 15 days of becoming aware of the change.
Exemption from regulations of Beneficial Owner procedures
Companies listed on a recognized stock exchange subject to disclosure requirements which ensure sufficient transparency on its beneficial owners or companies wholly owned by such listed companies are not required to maintain registers under the “Regulating the Beneficial Owner Procedures”.
Register of Partners or Shareholders
The Register of Partners and Shareholders shall include:
1. Number of shares held by each of them along with their categories and associated voting rights.
2. Date on which such partner or shareholder acquire that capacity in the Legal Person.
3. In case of natural partners or shareholders: the full name as it appears on the identity card or the passport, nationality, address, place of birth, name and address of employer and a true copy of the valid passport or ID.
4. In case of corporate partners or shareholders: the data stated in Clause (1) of Article (4) hereof.
Any change or update in the record must be made within 15 days of becoming aware of the change.