ESR Consultancy And Compliances

ESR was first introduced in April 2019, which was then amended by Cabinet Resolution No.57 of 2020 in August 2020. The ESR requires UAE onshore, free zone companies and other business forms that carry out any of the defined “Relevant Activities” to maintain and demonstrate an ‘economic presence’ in the UAE relative to the activities they undertake. These companies have to undergo Economic Substance Test, a test to identify if the business transactions under relevant activities have an economic substance or a business purpose in UAE.

The regulations apply to financial year’s commencing on or from 1st January 2019 and to businesses from Relevant Activities mentioned above. Failure to complying ESR timely may result in penalties suspension, revocation or non-renewal of the entity’s trade license/ permit.

What we can do?

If you choose us as your ESR consultant, we can support your business in understanding and timely execution of ESR including filing of notification & returns applicable for your business and help your business emerge as an ESR compliant.

Our step-by-step services include

• Budget PlanningWe help you set up an approximate cost budget with a deep understanding of your business needs.
• Eligibility AssessmentWe here do a detailed investigation on whether this law is applicable for your company or it meets any conditions for being exempt.
• Economic Substance FilingThis step requires you to have a registered Ministry of Finance account; in case you do not have, we create a new account for you to access the Economic Substance filing portal. We also notify the Regulatory Authority on your behalf about your eligibility within the prescribed timeline.
• Application EvaluationWe conduct a thorough evaluation of the application and rule out any compliance gaps if they exist as per the law.
• Submission of ESR compliant applicationOnce the final application is ready, we ensure timely submission to the regulators portal to avoid any default or penalties for your business.

We hereby, help you emerge as an ESR compliant business by taking away all the hassle of its complex procedures.