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Insights   >   Ultimate Beneficial Ownership (UBO) Disclosure in Saudi Arabia: What Businesses Must Know In 2026

Ultimate Beneficial Ownership (UBO) Disclosure in Saudi Arabia: What Businesses Must Know In 2026

Author: Shahenaz Alharbi
Dec 2, 2025
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Employers • IT • KSA • invest in Saudi Arabia

 

Saudi Arabia has strengthened its corporate transparency framework under Ministerial Decision No. 235, requiring most companies in the Kingdom to identify their Ultimate Beneficial Owners (UBOs), maintain accurate internal records, and file verified information through the Saudi Business Center (SBC).

Effective 3 April 2025, UBO disclosure is directly linked to Commercial Registration (CR) issuance and renewal, banking procedures, regulatory approvals, and overall business continuity. Every operating company in Saudi Arabia must now treat UBO reporting as a core compliance requirement not an administrative formality.

This guide outlines what UBO means, who must comply, and the essential steps companies must follow to remain compliant.

What Is an Ultimate Beneficial Owner (UBO)?

A UBO is the natural person who ultimately owns or controls a company, even when ownership is held through multiple layers or foreign entities.

A person is considered a UBO if they:

  • Own 25% or more of shares or voting rights (directly or indirectly), or
  • Have authority to appoint or remove the manager or the majority of board members, or
  • Exercise significant influence over decisions or operations.

If no one meets these criteria, the manager, chairman, or another person with effective control may be designated as the UBO.

Who Must Comply?

UBO rules apply to most entities under the Saudi Companies Law, including:

  • LLCs
  • Non-listed joint stock companies
  • Foreign-owned branches and subsidiaries
  • Professional firms
  • Holding companies

Exempt entities include:

  • Tadawul-listed companies
  • Companies fully owned by the Saudi government
  • Companies under liquidation (with formal proof)

If your entity is not exempt, UBO identification, documentation, and filing are mandatory.

What Companies Must Do to Stay Compliant

Below are the key practical steps, focused on what businesses actually need to complete in 2026.

1. Map Your Ownership Structure

Companies must trace ownership until they reach the natural person(s) who ultimately control the business. This includes:

  • Listing direct and indirect shareholders
  • Tracing holding companies and offshore entities
  • Identifying those who meet the 25% threshold
  • Recognising individuals who exert meaningful influence even below 25%

2. Update Your Articles of Association (AoA) and Corporate Records

Your UBO filing must match your actual legal structure.

Review and update:

  • AoA
  • Shareholder register
  • Share certificates
  • Capital changes or transfer documentation

Outdated records will lead to incorrect filings, delays, or rejected submissions.

3. Maintain an Internal UBO Register in Saudi Arabia

Every company must keep a UBO register within the Kingdom, including:

  • Full legal name of each UBO
  • National ID / Iqama / passport details
  • Residential address
  • Basis for UBO status (ownership %, control rights, influence)
  • Dates of becoming or ceasing to be a UBO

This register must remain up-to-date and available for inspection.

4. Submit UBO Information Through the SBC Portal

All UBO submissions must be filed digitally through the Saudi Business Center (SBC):

  • Before CR issuance or renewal

Missing or incomplete UBO information can block CR renewal and disrupt banking, invoicing, and platform access (Qiwa, GOSI, Mudad, etc.).

5. Report Any Changes Within 15 Days

Companies must update UBO information within 15 days of any event affecting ownership or control:

  • Share transfers or capital changes
  • New entities entering the ownership chain
  • Changes in voting or appointment rights
  • Appointment of a new manager/chairman (if designated UBO)

6. Maintain Supporting Documentation

Companies should keep a complete set of documents to verify UBO details, including:

  • CR
  • AoA + amendments
  • Shareholder register
  • Share transfer documents
  • Identification copies for each UBO

These are essential for audits, bank onboarding, and regulatory reviews.

Enforcement and Penalties

Failure to comply may result in:

  • Fines up to SAR 500,000
  • CR renewal delays or rejections
  • Banking restrictions
  • Increased regulatory scrutiny

Accurate UBO reporting is now critical for uninterrupted operations in Saudi Arabia.

Partner with TASC for End-to-End UBO Compliance

With over 18 years of GCC experience and a dedicated on-ground Saudi GRO team, TASC Corporate Services ensures every stage of your UBO compliance process is accurate, complete, and aligned with regulatory standards.

We manage:

  • Ownership structure mapping
  • UBO register creation
  • AoA and corporate record alignment
  • SBC filings and updates
  • Supporting document reviews

TASC also supports companies with broader, complex Saudi compliance requirements, enabling your team to stay focused on core business operations.
Speak with our experts today. and Stay compliant with the UBO Requirements

Frequently Asked Questions

1. Why is UBO compliance required?
To ensure transparency and identify individuals who ultimately control the business.

2. Where is UBO information submitted?
Through the Saudi Business Center (SBC) platform.

3. What if no one owns 25% or more?
A person with effective control—such as the manager or chairman—may be designated as the UBO.

4. Who must comply?
All companies under the Companies Law except listed, government-owned, and liquidated entities.

5. Can TASC assist with UBO compliance?
Yes, TASC provides full support from documentation review and register creation to SBC filings and ongoing compliance management.

Note:

This information is accurate as of 26 November 2025.