Free Zone Regulations of 2019 · RAKEZ
Zone-level beneficial ownership rules issued 28 August 2019 under Law No. 2 of 2017 requiring RAKEZ-registered entities to identify their beneficial owners, keep a register, notify the Registrar of changes, and setting the Registrar's powers and penalties for non-compliance and false information.
The Ras Al Khaimah Economic Zone Authority Beneficial Ownership Regulations 2019 require every RAKEZ entity to identify its beneficial owners, keep a record of them, file that record with the Registrar and report changes within 15 days. They were made by the RAKEZ Board of Directors under Law No. 2 of 2017 and are dated 28 August 2019 (Issue No. 01, reference COMPLIANCE-003); the commencement line in Regulation 1 is left blank in the published text. They sit alongside, not instead of, the federal beneficial owner regime now in Cabinet Decision No. (109) of 2023.
Schedule 1 defines the beneficial owner. For a company it is any individual who owns or controls more than 25% of the shares or voting rights, who may appoint or remove a majority of the board, or who otherwise exercises significant or ultimate control; where no individual qualifies through a corporate holder, the test is traced through to natural persons. Parallel tests apply to partnerships (more than 25% of capital or voting rights), trusts (settlor, trustees, beneficiaries and controllers), foundations (founder, council, guardian and beneficiaries) and joint voting arrangements, whose parties are each treated as holding the combined shares.
Part 2 holds the duties. Regulation 3 requires each entity to take reasonable steps to identify its beneficial owners. Regulation 4 requires a record of the required particulars, including identity, nationality, passport details, occupation and the grounds of beneficial ownership, submitted to the Registrar at incorporation, with existing entities given a prescribed period to comply. Regulation 5 requires the record to be kept accurate and up to date, and Regulation 6 requires the Registrar to be notified within 15 days of any amendment or change; each failure carries a fine of up to level 5. Under Parts 3 and 4 the Registrar keeps the Register of Beneficial Owners of Legal Persons electronically, may request information by written notice, may reject non-compliant submissions, and keeps the information of dissolved entities for the retention period. Regulation 11 limits disclosure: a certificate confirming beneficial owners may be issued to a third party only for a fee and with the entity's prior written consent, and individuals may access only information about themselves. Regulation 13 requires a UBO declaration in the RAKEZ format at registration, on material changes and on request.
Part 5 deals with enforcement. Non-compliance is an offence subject to fines (Regulation 16), knowingly or recklessly submitting false or misleading information is a contravention (Regulation 17), and the Registrar may issue a monetary penalty notice up to a level 5 fine, which Schedule 2 sets at AED 20,000, recoverable as a debt and publishable with the entity's name (Regulation 18). The standard fine scale runs from AED 1,000 at level 1 to AED 20,000 at level 5. Regulation 22 lets the Registrar issue guidance. The Regulations are in force.
Every RAKEZ entity, meaning each company, branch or other legal person registered with the RAK Economic Zone Authority, its directors and officers responsible for the beneficial owner record, the natural persons identified as beneficial owners, and the Registrar who keeps the Register of Beneficial Owners of Legal Persons and enforces the Regulations.
English official text in 10 passages. Open the full text or jump to a provision:
| Regulation 1 | Short title, commencement and authority: the Regulations are made by the RAKEZ Board of Directors under Law No. 2 of 2017; the commencement date in the published text reads '________________ 2019' and the document is dated 28 August 2019. |
| Regulation 3 | Every RAKEZ entity must take reasonable steps to identify its beneficial owners. |
| Regulation 4 | Each entity must keep a record of its beneficial owners with the required particulars (identity, nationality, passport details, occupation and grounds of ownership), submitted to the Registrar at incorporation; existing entities had a prescribed period to comply. |
| Regulation 5 | The record must be kept accurate and up to date and the Registrar notified of relevant changes; failure carries a fine of up to level 5. |
| Regulation 6 | Any amendment or change to the record of beneficial owners must be notified to the Registrar within 15 days; failure carries a fine of up to level 5. |
| Regulation 11 | Disclosure by the Registrar follows the Companies Regulations; a certificate confirming beneficial owners is issued to a requester only for a fee and with the entity's prior written consent, and individuals may access only information about themselves. |
| Regulation 12 | The Registrar may serve written notice requiring any information or document relevant to the Regulations and may take copies for enforcement. |
| Regulation 13 | Entities submit a UBO declaration in the RAKEZ format at registration, on any material change and whenever the Registrar requests it. |
| Regulation 17 | Knowingly or recklessly submitting false or misleading information to the Registrar is a contravention. |
| Regulation 18 | The Registrar may issue a monetary penalty notice; the amount must not exceed a level 5 fine, the recipient may seek court review, unpaid fines are recoverable as a debt and the Registrar may publish the entity's name and the fine. |
| Schedule 1 | Meaning of beneficial owner: for a company, any individual who owns or controls more than 25% of the shares or voting rights, may appoint or remove a majority of the board or otherwise exercises significant or ultimate control, traced through corporate holders to natural persons; equivalent tests for partnerships, trusts, foundations and joint arrangements. |
| Schedule 2 | Standard fines scale: level 1 AED 1,000, level 2 AED 2,000, level 3 AED 5,000, level 4 AED 10,000, level 5 AED 20,000. |
Failure to keep the record up to date or to notify changes within 15 days carries a fine of up to level 5 (Regulations 5 and 6), and any other non-compliance is an offence subject to fines (Regulation 16). The Registrar issues a monetary penalty notice capped at a level 5 fine, which Schedule 2 sets at AED 20,000, with lower levels of AED 1,000, AED 2,000, AED 5,000 and AED 10,000; the notice may be reviewed by the court, unpaid amounts are enforceable as a debt and the Registrar may publish the name of the entity and the fine (Regulation 18). The Registrar may also reject non-compliant applications (Regulation 14).
RAKEZ is our home zone, and we keep the Regulation 4 record for every RAKEZ company we form or administer. We run the Schedule 1 tests at onboarding, trace corporate shareholders through to natural persons, collect certified passport and address evidence, and file the RAKEZ UBO declaration with the incorporation pack. The record is maintained in parallel with the federal beneficial owner register under Cabinet Decision No. (109) of 2023, so one change of shareholder triggers two updates, and we treat the RAKEZ deadline of 15 days under Regulation 6 as the one to beat. Where a bank or counterparty asks a client for proof of its beneficial owners we obtain the Registrar's certificate under Regulation 11, which needs the entity's written consent and a fee. Our own AML file for each client cross-refers to the same record, because the CSP Regulations 2020 require us to hold the identity documents of the beneficial owners of every company we represent.
No amendments, repeals or cross-references recorded for this instrument.
“Cites” and “Cited by” are built automatically from references in the full texts held in this library; they cover only instruments in the library.
RAKEZ Companies Regulations 2023
Company law of the RAK Economic Zone, issued by the RAKEZ Board under Law No. 2 of 2017 of the Ruler of Ras Al Khaimah: formation of free zone establishments and companie…
RAKEZ CSP Regulations 2020
Regulations issued 16 September 2020 under Law No. 2 of 2017 for the registration and certification of entities providing corporate services in the Zone, their duties, ap…
Beneficial Owner Procedures 2023
The current UAE beneficial ownership regime, replacing Cabinet Decision No. 58 of 2020. Companies licensed in the mainland and in non-financial free zones must identify t…
UBO Administrative Penalties 2023
Sets the administrative penalties for breaches of the 2023 beneficial ownership resolution: failure to keep or file registers of real beneficiaries, shareholders and nomi…
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,…
AML/CFT/CPF Law 2025
The UAE's principal AML law in 42 articles. It criminalises money laundering, terrorism and proliferation financing, imposes risk assessment, customer due diligence, reco…
AML Executive Regulations 2025
The executive regulations of the 2025 AML law, replacing Cabinet Decision No. 10 of 2019. They set the detailed requirements for financial institutions, DNFBPs and VASPs:…
Whether you are establishing a new venture, restructuring an existing enterprise, or exploring residency pathways — we are here to advise.
Arrange a Consultation →