Economic Substance Regulations

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The Economic Substance Regulations require UAE onshore and free zone companies and certain other business forms that carry out certain activities to maintain and demonstrate an adequate “economic presence” in the UAE relative to the activities they undertake. The purpose of the Regulations is to ensure that UAE entities report actual profits that are commensurate with the economic activity undertaken within the UAE.

The Regulations apply to companies and other business forms registered in the UAE, including in a Free Zone or in a Financial Free Zone, that carry out any of the following Relevant Activities.

  • Banking Businesses
  • Insurance Businesses
  • Investment Fund Management Businesses
  • Lease-Finance Businesses
  • Headquarters Businesses
  • Shipping Businesses
  • Holding Company Businesses
  • Intellectual Property Businesses
  • Distribution and Service Centre Businesses

Our ESR Consultancy Services include:

  • Reassessing the status of the business under the ESR framework and its activity.
  • Submitting notification with the Ministry of Finance.
  • Tailor-made advisory service on formulating substance, testing your activities, ESR documentation, GAP analysis, etc.
  • Preparing and submitting the ESR Report with the Ministry of Finance.
  • Reviewing and submitting appeals for a penalty.

Schedule a free appointment with us or request a call back.

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