New UBO Rules in Saudi Arabia Effective from April 3, 2025
The Kingdom of Saudi Arabia is set to implement new Ultimate Beneficial Ownership (UBO) regulations ππππππππ April 3, 2025 – a major step toward enhancing corporate transparency and aligning with international compliance standards.
Under these new rules, most companies in the Kingdom are required to disclose details of their UBOs to the Ministry of Commerce.
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An individual is considered a UBO if they:
β Directly or indirectly own 25% or more of the companyβs share capital
β Control 25% or more of voting rights
β Have the authority to appoint or remove the majority of the board
β Exert significant influence over company decisions
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ππ΅ ππ―π€π°π³π±π°π³π’π΅πͺπ°π―: New entities must disclose UBO information during registration
ππ―π―πΆπ’π ππͺππͺπ―π¨π΄: Existing companies must confirm UBO details annually
Ongoing Updates: Changes must be reported within 15 days
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Publicly listed companies, state-owned entities, and companies under liquidation are exempt.
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Non-compliance may attract fines of up to SAR 500,000.