All commercial licenses that engage in any of the defined'relevant activities in the UAE, as listed below, must comply with Cabinet of Ministers Resolution No. (57) of 2020 Concerning Economic Substance Reporting (ESR).

- Banking Business

- Insurance Business

- Investment Fund management Business

- Lease - Finance Business

- Headquarters Business

- Shipping Business

- Holding Company Business

- Intellectual property Business

- Distribution and Service Centre Business
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All appointed shareholders must adhere to the following guidelines:

Notification: A maximum period of 6 months is granted from the end of the fiscal year. Companies must provide the regulatory authorities with economic substance
notifications, including preliminary information about the activities. This notification is a prerequisite for submitting an economic substance report.

Economic Substance Reports: A maximum period of 12 months isgranted from the end of the financial year end.

Failure to adhere to the Regulations can result in penalties, spontaneous exchange of information with the Foreign Competent Authority (as defined in Article 1 of the Regulations), as well as other administrative sanctions, such as the suspension, revocation, or non-renewal of the business' trade license or permit. Non-submittal of the Notification and Economic Substance Report, both accurately and on time, will result in a penalties. Contact us to find out if your type of activity falls under ESR requirements.

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