The UAE applies Economic Substance Regulations (ESR) to local companies located in the country, including businesses in the free zones and those engaged in any of the defined ‘relevant activities’. These 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 by the company.
Activities to Which Economic Substance Regulations Apply;
•Banking businesses
•Insurance businesses
•Investment fund management businesses
•Lease-finance businesses
•Headquarter businesses
•Shipping businesses
•Holding company businesses
•Intellectual property businesses
•Distribution and Service Centre businesses