All entities with financial year-end 31st December 2020 and falling within the scope of ESR should have submitted an ESR Notification with the Ministry of Finance (“MoF”) by 30th June 2021.
Should your entity have failed to submit the ESR Notification, it is paramount that this step is remediated as soon as possible so as to mitigate the risk of penalties for late (or lack of) submission of the ESR Notification amounting AED 20,000.
Entities with financial year-end 31st December 2020 and falling within the scope of ESR must also submit a Substance Report by 31st December 2021 to confirm that they comply with the ESR requirements, to wit: (i) the entity is being managed and directed in the UAE; (ii) has adequate number of employees, expenditure, physical assets in the UAE; (iii) the core income-generating activity (CIGA) is being carried out in the UAE.
We strongly recommend all entities falling within the scope of ESR to review their governance arrangement and put in place all necessary measures to comply with the ESR requirements from now on. Non-compliant practices should be remediated without further delay.
For further information on how M/HQ can assist your entity to comply with ESR requirements, please see below our previous publications:
CORPORATE GOVERNANCE & ONGOING COMPLIANCE OBLIGATIONS
Keeping on top of the administrative and statutory compliance responsibilities associated with managing a company can be challenging and time-consuming. The time and energy spent attending to these onerous yet necessary tasks could be focused on running and growing your business.
NEDs in the context of Economic Substance Regulations
ESR took effect on 30 April 2019. There are a number of actions in which relevant Licensees must undertake to ensure compliance with ESR, chiefly the management of the Licensee from the UAE.
See our Mail Alert Get in touch – To get the latest Mail Alerts
UAE ESR Update: ESR Notification Deadline Tracker [3.0]
UAE ESR Update: ESR Notification Deadline Tracker [2.0]
UAE ESR Update: DMCC issues Economic Substance Notification template
UAE ESR Update: ESR Notification Deadline Tracker
UAE ESR Update: Ministry of Finance (MoF) publishes Relevant Activity Guide
UAE ESR Update: Notification procedure and deadline for DIFC Licensees
Economic Substance Notification procedure and deadline for DIFC Licensees
UAE ESR Update: Economic Substance Notification procedure and deadline for RAK ICC Licensees