ESR Filling Service
Economic Substance Regulations within the UAE
Economic Substance Regulations within the UAE is another compliance requirement for entities registered within the UAE. The United Arab Emirates (UAE) Ministry initially enacted the cupboard Resolution no. 31/2019 with effect from 30th April 2019 on Economic Substance Regulations within the UAE. This was followed by the Ministerial Decision 215 for the year 2019 giving directives for the implementation of the provisions of Cabinet Decision no. 31/2019. However, On 10th August 2020 New Economic Substance Regulation was introduced within the UAE via Cabinet Resolution 57/2020 which repealed and revoked Cabinet Decision no. 31/2019. Also, Ministerial Decision No 100 for the year 2020 replaced Ministerial Decision 215 for the year 2019.
What are the Relevant Activities as per Economic Substance Regulations in UAE?
The UAE companies including the mainland, free port offshore, and therefore the financial free zones come under the scope of the Economic Substance Regulations in UAE. the businesses got to suits Economic Substance Regulations in UAE if they generate earnings from any of the relevant activities given below
- Banking Businesses
- Insurance Businesses
- Investment Fund Management Businesses
- Lease-Finance Businesses
- Headquarter Businesses
- Shipping Businesses
- Company Businesses
- Property Businesses
- Distribution and repair Centre Businesses
ESR Notification should be filled by all Licensee and Exempted Licensee
annually providing the subsequent details
Exempted Licensee to also provide all the knowledge and documents for claiming the status of Exempted Licensee.
Notification must be filed within 6months from the top of its fiscal year & ESR Report must be filed with 12months from the top of its fiscal year of Licensee or exempted licensee.
Penalty for Failing File Economic Substance Notification Before Deadline
The mainland, free zone, and offshore companies got to file the economic substance regulations notification before the prescribed maturity. Failing to notify the regulatory authorities before the deadline will attract hefty penalties within the range of AED 10,000 to AED 50,000. the businesses will incur an equivalent amount of fine for furnishing misinformation within the notification. To avoid such unforeseen incidents, the businesses should consult the simplest ESR service firms in Dubai, UAE.
How Kloudac Experts can help you?
Our experts will conduct a preliminary check on your business on the applicability of Economic Substance Regulation.
If Economic Substance Regulation is applicable for your company, then we support and guide you to see whether the standards on the satisfaction of Economic Substance are met or not.
If the standards aren’t met, then spot the gaps. Providing suggestions and enhancements to make sure compliance with Economic Substance Regulation within the UAE.
to help the Licensee to file Information Notification with the Relevant Authorities.