ESR Assessment & Notification

Understanding Economic Substance Regulations (ESR):

ESR Regulations mandate UAE onshore and free zone companies engaging in specific activities to maintain and demonstrate an adequate “economic presence” in the UAE. The purpose is to ensure that entities report actual profits aligning with the economic activity undertaken within the country.

Relevant Activities Subject to ESR:

The ESR Regulations apply to entities engaged in the following activities:

• Banking Businesses
• Insurance Businesses
• Investment Fund Management Businesses
• Lease-Finance Businesses
• Headquarter Businesses
• Shipping Businesses
• Holding Company Businesses
• Intellectual Property Businesses
• Distribution and Service Center Businesses

ESR Assessment and Notification Assistance:

Parker Russell Obaid Auditing offers comprehensive services for both ESR assessment and notification filing, including:

1. Determining Applicability: Assess whether your entity is subject to ESR based on its activities and align it with the stipulated criteria.
2. Economic Presence Evaluation: Evaluate the adequacy of your entity’s economic presence in the UAE relative to the activities it undertakes.
3. Compliance Advisory: Receive expert advice on aligning your entity’s economic substance with ESR requirements.
4. Notification Preparation: Ensure accurate and timely preparation of the ESR notification document.
5. Regulatory Compliance: Assure compliance with the ESR requirement to file the notification within 6 months of the end of the relevant financial year.
6. Strategic Advisory: Benefit from strategic advisory services to enhance your entity’s ESR compliance strategy.