Compliance
We, at Kaizen, understand the impact of these risks on your business and provide effective and efficient solutions for:
A major change in regulations concerning ultimate beneficial owner (UBO) procedures has come into force in UAE. The UAE Cabinet issued Cabinet Resolution no (58) of 2020 concerning regulation of the real beneficiary procedures (“UBO Regulations”) and this was enacted on 28th August 2020.
The UBO Regulations establish a framework for reporting and registering beneficial interests, ultimate beneficial owners (“UBO”) and professional directors.
All UAE companies, whether you are considered “onshore” or “offshore”, must comply with the reporting obligations under the UBO Regulations.
This reporting is directly to the authority that the company is registered under. It should be noted that DIFC and ADGM registered companies remain unaffected by the new regulations.
Non-compliance with the preparation and subsequent updating of any of these registers may lead to administrative fines.
We help our clients to comply with this UBO requirement and to ensure they maintain the required records to demonstrate the compliance as well.
Economic Substance Regulations
UAE issued the Cabinet of Ministers Resolution No. 31 of 2019 concerning economic substance regulations, with an aim to address the findings issued by the Council of the European Union, and possible exclusion from the EU list of non-cooperative jurisdictions for tax purposes. Additional guidance in terms of Ministerial Decision No 215 of 2019 was issued providing further clarification on the original regulations
Economic substance regulation will be applicable to onshore and offshore that engaged in any of the “Relevant Activities” .
This regulation has increased the compliance requirements for entities which carry out
certain ‘Relevant Activities’ in the UAE. These Entities will need to report compliance with
the regulations on an annual basis, and where they are unable to demonstrate economic
substance, they would be subject to penalties and even revocation of the license, if non-
compliance is repeated .
Kaizen Business Consultants review the applicability of ESR on its clients, perform the Gap Assessment and advise them with the remedial options . Based on our findings we also arrange to prepare and submit the annual notification for the clients and submit the
Economic Substance Reports for the entities carrying “Relevant Activity” in the UAE.
