Beneficial Owner Procedures 2020 (repealed)

The first general UAE beneficial ownership regime. It required mainland and free zone companies (outside the financial free zones) to keep registers of beneficial owners, partners or shareholders and nominee directors and to file them with their registrars within sixty days. Repealed Cabinet Decision No. 34 of 2020 and was itself repealed by Cabinet Decision No. 109 of 2023.

Official title
Cabinet Decision No. 58 of 2020 Regulating the Beneficial Owner Procedures
Instrument
Cabinet Decision No. 58 of 2020
Issued by
UAE Cabinet
Jurisdiction
UAE Federal
Dates
in force 25 August 2020
Status
repealed
Repeals
Cabinet Decision No. 34 of 2020
Repealed by
Cabinet Decision No. 109 of 2023
Topics
Beneficial ownership · AML / CFT
Official source
rulebook.centralbank.ae
Verified
25 October 2026

Summary

Cabinet Decision No. 58 of 2020 was the first general UAE beneficial ownership regime. Effective from 25 August 2020, it repealed Cabinet Decision No. 34 of 2020 (Article 19) and was itself repealed by Cabinet Resolution No. 109 of 2023, which the Central Bank rulebook records as the repealing instrument. It is kept in the library because free zone portals, bank forms and older board resolutions still refer to it.

The structure is the one the 2023 resolution carried forward. Article 3 applied it to registrars and to all licensed or registered legal persons, including those in commercial free zones, while excluding wholly government-owned companies, their wholly owned subsidiaries and the financial free zones. Article 5 set the identification test: any natural person holding 25% or more of the shares or voting rights, directly or through a chain of ownership, failing that a person exercising control by other means, failing that the senior manager. Article 6 required reasonable steps to obtain and keep accurate beneficial owner data and exempted entities owned by companies listed on a recognised exchange with adequate disclosure.

Article 8 required a Register of Beneficial Owners to be set up within 60 days and updated within 15 days of a change, with notification to anyone entered without their knowledge and a court route to correct entries. Article 9 obliged nominee board members to disclose their status within 15 days (30 days for existing nominees). Article 10 required a Register of Partners or Shareholders with holdings, voting rights, acquisition dates and identity details. Article 11 required both registers to be filed with the registrar within 60 days of the decision's promulgation or of licensing, named a UAE-resident natural person as point of contact, banned bearer share warrants, required handover to a liquidator and five-year retention. Article 14 required changes to be notified to the registrar within 15 days.

Article 17 allowed the Minister or a delegated licensing authority to impose sanctions from a list set by Cabinet decision (which became Cabinet Resolution No. 53 of 2021); Article 18 allowed a grievance within 30 days, decided within 30 days.

What changed in 2023: the tests, deadlines and registers survived almost unchanged; Cabinet Resolution No. 109 of 2023 moved penalty powers to the registrar, lengthened the appeal committee's decision period to 45 working days, added a 14-day limit for answering registrar data requests and was paired with a new penalty schedule in Cabinet Resolution No. 132 of 2023. Status: repealed.

Who it applies to

Historically, every legal person licensed or registered in the UAE mainland or a commercial free zone, its nominee board members, shareholders and beneficial owners, and the licensing authorities acting as registrar; excluded wholly government-owned companies and the financial free zones. No longer in force; replaced by Cabinet Resolution No. 109 of 2023.

Key provisions

Article 1Defines the beneficial owner as the natural person who ultimately owns or controls the legal person, whether directly or through a chain of ownership, together with nominee board member, higher management and the two registers.
Article 3Scope: registrars and licensed or registered entities including commercial free zones; excludes wholly government-owned companies, their wholly owned subsidiaries and the financial free zones.
Article 5Identification test: 25% or more of the shares or voting rights, directly or through a chain of ownership, jointly held stakes aggregated, then control by other means, then senior management as fallback.
Article 8Register of Beneficial Owners to be set up within 60 days and updated within 15 days of a change, with notification to persons entered without their knowledge and a court application to correct the register.
Article 9Nominee board members must disclose their status and principal within 15 days and report changes or cessation within 15 days; existing nominees had 30 days from the decision's entry into force.
Article 11Both registers filed with the registrar within 60 days of promulgation or licensing; UAE-resident natural person named as point of contact; bearer share warrants banned; liquidator handover; five-year retention.
Article 14All registers must be kept accurate and the registrar notified of any change within 15 days.
Article 17The Minister, or a licensing authority delegated by the Minister, may impose sanctions from a list set by Cabinet decision.
Article 19Repeals Cabinet Decision No. 34 of 2020 on the regulation of beneficial owner procedures and any conflicting provision.

Penalties

The decision itself set no amounts. Article 17 referred sanctions to a Cabinet list, which was Cabinet Resolution No. 53 of 2021; that list has been replaced by Cabinet Resolution No. 132 of 2023, which now applies under the 2023 regime.

In practice — how Polaris handles it

We meet this decision in legacy paperwork: RAKEZ, Ajman and DMCC portal forms, bank beneficial-ownership declarations and board resolutions drafted in 2020 to 2023 often recite Cabinet Decision No. 58 of 2020 as the basis for the UBO declaration. The substantive content (25% test, 60-day filing, 15-day updates, resident point of contact) is the same under Cabinet Resolution No. 109 of 2023, so a declaration made under the old decision remains accurate; what we change is the citation and, where a penalty clause is quoted, the reference to Cabinet Resolution No. 132 of 2023. When onboarding a company previously administered elsewhere, we check that the register filed under the 2020 decision was actually updated for later changes, because the 15-day update duty carried over and unfiled changes are the most common gap we find.

Related instruments

Related Polaris services

Source and verification. This page was written from the official text published at rulebook.centralbank.ae, read on 25 October 2026. Quoted from that text: “within (60) sixty days of the promulgation date of this Decision or date of licensing or registration”
This summary is published for general information by Polaris Corporate Services FZ-LLC, a licensed Trust and Corporate Service Provider. It is not legal advice and does not replace the official text, which prevails in case of difference. Arabic is the authoritative language of UAE federal and emirate legislation; English translations are provided by the issuing authorities. Instruments change: check the status and the official source before relying on this page.

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