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the new amendment of the ultimate beneficial owners disclosure.

the new amendment of the ultimate beneficial owners disclosure.

13-03-2020

The companies' registered in the Egyptian commercial registry are now under an obligation to identify their ultimate beneficial owners (UBOs) who have actual ownership or control over the company or any other legal entities, according to the new amendment to the executive regulations of the commercial registry law no.34/1976 by the Ministerial decree no.41/2020.

The following is a brief outline the new amendments:

The amendment imposes a new obligation on all companies and other legal entities registered under the commercial registry, to disclose their UBO's full information and record this information in a special register called the UBO Register; however this register is required to be updated regularly. 

This register must include but not limited to; names of actual owners of the company, their nationalities, national ID number, or the passport number for non-Egyptians, also such register must be held throughout the lifetime of the company and for a period of five years after the company cases operations or in the case of de-registration from the commercial register.

The date of Entry into Force:  

The Amendment is entry into force on the 09th of March 2020, It is still unclear how this new amendments will be applied, so we will keep you update on the practice of this amendments and how the competent authorities will apply these rules.

Compliance:

The amendment obliged the companies registered in the commercial registry to comply with this rules, although there is no specific penalty for not complying with the stipulated amendments, however the general penalty stated in the commercial register law will be applied.

If you need any legal assistance, feel free to contact us via email: azzam@azzam-lawfirm.com.

 

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