KGRN Chartered Accountants helps in completing - UAE Economic Substance Requirements


Posted May 21, 2020 by KGRN-audit

Economic Substance Regulations in the UAE, ESR is another compliance requirement for entities registered in the UAE And Dubai.

 
Guidance that provides further clarity on the application of the Regulations was issued on 11 September 2019. The Regulations require UAE onshore and free zone companies and other UAE business forms that carry out any of the “Relevant Activities” listed below to maintain an adequate “economic presence” in the UAE relative to the activities they undertake.

Scope of the ESR in UAE.

The scope of the Economic Substance Regulations -ESR in Dubai has made it clear that the regulation applies to all the licensee having the commercial license, certificate of incorporation, or any other form of permit necessarily taken from licensing authority to do business. Going with the spirit of the law and the provisions, it is interpreted that Free Zone includes Offshore Companies as well.

What are the Relevant Activities Under ESR In UAE.

FHTP have considered the geographically mobile activities for the substance requirements. Following are the activities falling into this category:
Banking Business
Insurance Business
Lease-finance Business
Headquartered Business
Shipping Business
Holding Company Business
Intellectual Property Business
Investment Fund Management
Distribution and Service

Deadlines For Notification Under ESR
DIFC-31st March 2020
JAFZA-31st  March 2020
DAFZA -03rd  May 2020
RAKICC-30th June 2020
AFZ-30th June 2020
DMCC-30th June 2020

Penalties For Failure to ESR.
Penalties for failing to notify the regulatory authority are between AED 10,000 – And AED 50,000

How  KGRN Chartered Accountants Can help -ESR in Dubai?

KGRN Chartered Accountants can help you get a clear understanding of the new economic substance regulations in the UAE – requirements applicable. KGRN Chartered Accountants can conduct an impact analysis – studying and analysing the effect of the new economic substance regulations -ESR on your existing businesses in UAE.

Identify gaps in level of economic substance in affected entities and consider remediation options where gaps are identified. KGRN Chartered Accountants can assist in relevant compliances under the new regulations.
 
For more info please contact : 

Contact Person : Gopu Rama Naidu CPA FCA
Email: [email protected] 
Mobile : +971 50 452 0648  
Phone: +971 455 70 204
-- END ---
Share Facebook Twitter
Print Friendly and PDF DisclaimerReport Abuse
Contact Email [email protected]
Issued By Gopu Rama Naidu
Phone +971 45 570 244
Business Address 3205, The Prism , Business Bay,
Dubai, U.A.E, P.O Box: 126436
Country United Arab Emirates
Categories Accounting
Tags audit services in dubai , auditing services dubai , accounting firms in Dubai , audit firms in uae , UAE Economic Substance Requirements , uae economic substance regulations , ESR in UAE , Economic Substance Requirements UAE
Last Updated May 21, 2020