Home > ESR (economic substance regulations)

ESR (economic substance regulations)

Name: ESR Services (economic substance regulations services)
Brand: SNR Associates

We make sure whether your business falls under ESR

The regulations are made in such a way that it is applied to all Legal persons and their relevant activities are noted in the UAE. It is important to fulfill all the strategies that fall in this act. They have to report to the ESR and there are two levels to report. to check whether their business falls within the scope of their regulation. The two types of reports are ESR notification and ESR reporting. Everything including claiming a form has to be notified to the Ministry. They have to submit an annual report it is a must it has to meet the ESR tests.

ESR will be monitoring all types of relevant activities carried out by a legal person or any resident they are needed to send a notification to the ministry and they are made to pass ESR tests and if they clear they are provided with a license that is valid for a year. They have to provide a financial statement at every financial year-end if that’s clear their license will be renewed.

Our team are there to ensure your business falls under the scope of ESR. We ensure you meet the ESR tests. In case if you need any compliance obligations, we are to help you. ESR monitors Banking business activities also insurance is taken concerned.

Frequently Asked Questions

What is ESR form?

Economic substance regulations are a submission of form which needs to be done for every financial year. Companies need to access their everyday activities and transactions history for every financial year. And then take steps to file the requirement with the UAE Ministry of finance.

Why it is mandatory?

Under the rework of ESR, all organization needs to conduct some activities that are related to the company even if they have certified License for their company. They are required to file a Notification on the Ministry of Finance Portal within 6 months of the end of their reportable Period.

Who needs to file them?

Companies that are in mainland, free zone offshore, or the financial free zones that need to conduct relevant activities and initiate earnings in UAE, need to file those transactions in ESR at UAE. These relevant activities include Banking business, Intellectual property business, Shipping business, etc.,

When and how to file the ESR form?

In UAE, ESR mandatory license to file a notification through the MoF’s dedicated ESR portal within six months of the license financial year-end, only if a relevant activity has been taken during the reportable Period. Every year license holders need to file ESR every year.