Following the latest announcement on the deadline for Licensees to submit a Notification and, as the case may be, a Substance Report submission through the Ministry of Finance’s Portal, we have now entered the last 2 days sprint!
There are a number of actions which relevant Licensees must be undertaking to ensure compliance − from clarifying their entity classification, to the structuring of contractual and delegation arrangements, the review and organization of their internal governance, their employment and premises arrangements and the capturing of relevant business information which will be required for the preparation and filing of reporting information to the Ministry of Finance.
In light of the novelties introduced by the New ESR Regime, we strongly recommend that all Licensees reassess their scope in order to be ready to re-submit the ESR Notification and, as the case may be, the Substance Report within the allotted timeframe.
The ESR Notification is the first step for Licensees to comply with ESR obligations, and serves as the self-declaration of whether Relevant Activities are performed in the UAE. The Substance Report is then applicable to Licensees conducting a Relevant Activity and generating income from such Relevant Activity.
Failure to complete and submit the Notification and Substance Report within the allotted timeframe shall result in penalties.
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.
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