ESR

Looking to comply
with the ESR in the UAE?

Your ultimate solution for navigating the complexities of the UAE's
ES regulations with ease!

GET FREE CONSULTATION

ESR

Comply with ESR in the UAE?

Your ultimate solution for navigating the complexities of the UAE's ES regulations with ease!

GET FREE CONSULTATION

Compliance with Economic Substance Regulations in UAE Made Easy

Introduction to Economic Substance Regulations UAE
The Economic Substance Regulations (ESR) were initially introduced in the UAE in April 2019 through Cabinet Resolution No. 31, later amended by Cabinet Decision No. 57 and updated guidance (Ministerial Decision No. 100 of 2020) in September 2020. ESR mandates that all UAE companies engaging in ‘Relevant Activities’ must establish and demonstrate substantial ‘economic presence’ in the UAE, as assessed by the ES Test.

For companies involved in ‘relevant activities’ and generating income from them, it is mandatory to submit an annual ES Notification within six months from the end of the relevant financial period. Additionally, these companies must furnish a comprehensive ES Report within 12 months from the conclusion of their fiscal year.

Navigating the intricacies of the UAE's Economic Substance Regulations (ESR) has never been simpler!

Consequences of Failing to Submit ES Notification

Failure to submit an ES Notification will result in fine of AED 20,000 and failure to comply with the ESR (including failure to file an ES Report, demonstrating economic substance and providing inaccurate or incomplete information) will result in fine of AED 50,000 in any fiscal year. The fines can reach up to AED 400,000 and can expose a UAE entity to spontaneous exchange of information with the Foreign Competent Authority, as well as other administrative sanctions such as the suspension, revocation or non-renewal of the entity’s trade license or permit.

ESR Services

We ensure precision and compliance at every intricate phase of the ESR requirements.

How We Can Assist You

ES Impact Assessment
ES Notification Preparation
ES Report Preparation
ESR Appeal Assistance

In summary, our comprehensive services are designed to streamline your compliance with the Economic Substance Regulations UAE. Contact us today to navigate the new Economic Substance Regulations for UAE companies effectively.