Saudi Arabia has introduced Ultimate Beneficial Ownership (UBO) regulations under Ministerial Resolution No. (235), reinforcing corporate governance, financial integrity, and regulatory compliance. These rules mandate that companies disclose their UBOs—individuals with at least 25% ownership, board control, or significant influence—ensuring a more transparent business environment.
Key Compliance Requirements:
✔ UBO disclosure upon company incorporation
✔ Annual confirmation and updates
✔ Mandatory reporting of ownership changes within 15 days
✔ Secure record-keeping, accessible to regulatory authorities
Non-compliance may result in significant penalties, emphasizing the critical need for robust internal compliance mechanisms. By adhering to these regulations, companies safeguard their operations, mitigate risk, and align with global best practices.
