What’s new?
As detailed in our previous alerts, the UAE introduced Economic Substance Regulations (“ESR” or “Regulations”) by the enactment of Cabinet Decision No. 31/2019 on 30 April 2019 (See our fact sheet — UAE Economic Substance Law Briefing).
Guidance with respect to time, form and method of submission for the notifications and reports have been eagerly awaited. So far only the DIFC has officially announced the 31st March 2020 as the deadline for the submission of the first notification period (effective from January 1) and confirming the authority of the RoC (“Registrar of Companies”) as the Regulatory Authority in the Free Zone to which notifications should be submitted to. 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. end of Q1) 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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