The Economic Substance Regulations (ESR) were introduced in the UAE in 2019 to ensure that businesses engaged in certain activities maintain substantial economic presence within the country. These regulations apply to UAE-based entities, including offshore companies and branches of both local and foreign businesses, that generate income from relevant activities.
Entities falling under ESR must meet specific compliance obligations such as annual notifications and detailed reporting. While some organizations may qualify for exemption, they are still required to submit notification forms along with supporting documents to justify their exemption status.
At Faizi Associates, our experienced team offers end-to-end assistance with ESR compliance—from evaluating your entity’s obligations to managing notification submissions and ESR reports. Non-compliance can lead to hefty fines, suspension of business licenses, and reputational risks, so it's crucial to stay ahead of the requirements.
Have a question or need help? Send us a message and we’ll respond quickly.
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