To address concerns regarding entities having too little substance while operating in United Arab Emirates (UAE) jurisdictions, the Ministry of Finance has sought to implement Economic Substance Regulations in the Cabinet Ministry Resolution (No 31) of 2019.
The newly introduced regulations apply to legal or natural persons licensed in carrying out any relevant activity as per the Cabinet Resolution. This includes licensees that are operating in and out of UAE free zones, offshore free zones, and financial free zones. ESR is applicable to financial years starting from the 1st of January 2019.
At Farahat & Co., we can provide assistance in navigating the UAE economic substance requirements that are to be met by affected business entities. The firm offers a broad range of services from advisory services on the registration status with regulators to classification checks, full reviews, and report filings