The UAE implemented Economic Substance Regulations (ESR) to ensure that businesses operating in the country have genuine economic activity and substance. Non-compliance with ESR can result in significant penalties. Substantial Activities under Economic Substance Regulations means the Companies get incorporated under the local law of the country but do not engage or conduct any activity or hold any substance in that country.  

The UAE issued economic substance regulations (the “Regulations”) in April 2019, amended by Cabinet Resolution No.57 of 2020 in August 2020, which introduced a requirement for UAE entities to maintain an adequate “economic presence” in the UAE relative to the activities they undertake.

Our key services include:

• Impact assessment of business
• Economic Substance Test
• Notification and filing with authority
• Ongoing ESR Compliance
• ESR Record maintenance

By partnering with Fandeez, you can ensure that your business is compliant with ESR regulations and avoid potential penalties.