What’s new?
RAK ICC has announced a deadline to 30th June 2020 for all Licensees for making ESR submissions in relation to the 2019 Reporting period. Step by step guidance has also been released by RAK ICC. Notification Forms will be available from 29th March 2020, and filings should be processed by Registered Agents through the RAK ICC portal.
As detailed in our previous alerts,
- The UAE introduced the Economic Substance Regulations
(the “ESR” or “Regulations”) on 30th April 2019
(See our fact sheet — UAE Economic Substance Law Briefing). - A directive providing details on its implementation
(See our fact sheet — UAE ESR Update: Guidance Released) and; - concerned Regulatory Authorities were released further on.
(To read more, click here)
Guidance with respect to time, form and method of submission for the notifications and reports have been eagerly awaited. So far, the DIFC and RAK ICC Authorities have officially announced their respective deadlines of 31st March 2020 and 30th June 2020 for the submission of the Economic Substance notification. In its most recent Outreach session, ADGM verbally announced that the notification period of ADGM registered entities will also fall due by 31st March 2020.
It is expected that all Authorities will follow the same deadline (i.e. between Q1 and Q2) for their respective Licensees to submit notifications. Therefore, it is paramount that any affected Licensee assesses its existing situation, and makes sure that it is compliant with ESR in order to avoid penalties.
How can we help?
Understanding ESR is the first step towards ensuring you make the right decisions for your company.
Is your entity in-scope of the new legislation? If so, is it conducting one (or more) of the listed Relevant Activities? Is it able to pass the economic substance test?
M/HQ 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 to define a strategy and implement a bespoke plan of action.
Ensuring that your company complies with its administrative and statutory responsibilities can be cumbersome. Outsourcing this function to M/HQ enables you to comply with your obligations and to focus on what you do best – manage your operations and grow your business.
We are happy to discuss your company’s specific needs in depth in light of the new economic substance law, helping you find the most cost and time-effective solution to meet your administrative and statutory compliance responsibilities.
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