Page 17 - Premier Brains Global -Doing Business in UAE (Low Res)

DOING BUSINESS in UAE

COMPLIANCE REQUIREMENTS IN UAE

There are various compliance requirements in UAE and some are specific to the industry
concerned. Some of the common compliance requirements are listed below,

Economic Substance
Purpose of ESR
Regulations (ESR)

The United Arab Emirates (UAE) had These regulations were introduced to ensure
implemented Economic Substance that businesses operating in the UAE are
Regulations (ECR) in line with international genuinely conducting economic activities
standards set by the Organization for and have substantial activities taking place
Economic Co-operation and development within the country.
(OECD) to combat harmful tax practices Every UAE Licensee need to assess each
and promote transparency. year, if they are conducting any of the above
relevant activities and accordingly submit
The ESR requires certain entities registered an Economic Substance (“ES”) Notification
in the UAE to demonstrate economics on an annual basis that undertakes one
substance in the country if they engage in or more “Relevant Activity” (regardless of
specific activities (also commonly known as whether it earns income from the “Relevant
“Relevant Activities”) listed below: - Activity”).
Licensees that undertake relevant activities
1. Banking and not subject to any exceptions are
required to file an Annual ES report based
on self-assessment. ESR exemption claims
2. Insurance must be applied annually for the approval

of the Authority.
3. Investment fund management
The annual reporting deadlines are set out
as follows which must be submitted through
4. Lease finance the Ministry of Finance portal:

• Notification due date: Within 6 months of
5. Shipping
the financial year end of the UAE Licensee.

6. Intellectual property • Annual Report due date: Within 12 months
of the financial year end of the UAE Licensee

7. Holding company business
Non-compliance with the ESR could result in
penalties, including fines and the potential
8. Intellectual property Business (“IP”) suspension, revocation, or non-renewal of
the entity’s trade license.
Business doing relevant activity are required
9. Distribution and Service Centre to meet ‘Economic Substance Test:

Business
17