Economic Substance Regulations – ESR

• Banking Business
• Insurance Business
• Investment Fund management Business
• Lease – Finance Business
• Intellectual property (IP) Business
• Headquarters Business
• Shipping Business
• Holding Company Business
• Distribution and Service Centre Business
• Assessment of ESR applicability
• Timely submission of ESR notification
• Submission of ESR reports

The United Arab Emirates (UAE) released the Cabinet of Ministers Resolution no. 31/2019 with effect from 30 April 2019, concerning the Regulations for Economic Substance (ES) in the UAE.

The new law requires that all the companies registered in UAE (‘licensee’) and carrying out Relevant Activities to demonstrate that they have effective substance in the country by satisfying an economic substance test on an annual basis. Failure to comply with these regulations will attract penalties. Mabade can support you in assessing the impact of the new legislation on your business – providing preliminary assessments of your company’s current compliance obligations, and where required, help you find the most cost and time-effective solutions to meet your administrative and statutory compliance responsibilities.