Economic Substance Regulation (ESR) Submission
As a registered license holder from Fujairah Creative City Free Zone, if your company plans to carry out one of numerous ‘relevant activities’ here in the UAE, it must meet new economic substance rules in the UAE. To avoid non-compliance with these rules and potential penalties, as a first and immediate step all UAE entities (both companies and branches) having the below 7 activities are considered ‘relevant entities’ and must comply with economic substance regulations.
- Insurance services;
- Investment fund management business
- Finance leasing;
- Headquarter activities related to:-
- Conducting management decisions;
- Incurring operational expenditure in behalf of group entities; and
- Coordinating group activities.
- Intellectual property service;
Under the UAE Economic Substance Rules, failure to comply with the economic substance regulations can result in fines of up to AED 300,000. The circular can be read in full here.
Should you have any queries or want to assess whether your company needs to be included under the new ESR regulations please contact us on firstname.lastname@example.org/800-BIZ or speak to your relationship manager for more information.