Definition

A Beneficial Owner is the natural person who ultimately owns or controls a company, even if the ownership is through another entity. UAE regulations require businesses to maintain and report beneficial ownership records.

Key points

• Minimum shareholding threshold: usually 25% or more.
• Records must be filed with licensing authorities.
• Required for AML/CFT compliance in the UAE.
• Failure to maintain records can result in heavy fines.

Practical example

A free zone company owned by another offshore company must disclose the individual who ultimately controls the shares as the beneficial owner.

Why it matters

Beneficial ownership rules improve transparency and are strictly enforced in the UAE.