What Are the Relevant Activities That Fall Under Economic Substance Regulations in the UAE?

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The UAE has newly introduced Economic Substance Regulations, and accordingly, all UAE organizations that might be dependent upon these regulations should be set up to make a move and ensure compliance.

Relevant Activities That Fall Under Economic Substance Regulations

Any entity licensed in the UAE to carry out a relevant activity' regardless of whether in a free zone or onshore &including in a financially free zone is needed to comply with the EconomicSubstance Rules. The relevant activities are:

Banking businesses
Insurance businesses
Investment fund management businesses
Lease-finance businesses
Shipping businesses
Headquarters businesses
Holding company businesses
Intellectual property businesses &
Distribution and service center businesses

All businesses in UAE are expected to use substance over form approach to determine whether or not they embraced a Relevant Activity and, accordingly, are inside the extent of the regulations. This would require the UAE business to not just consider the activities expressed under their business registration certificate or commercial license but also to evaluate the activities done during a financial period.

If a business in the UAE is unable to discover whether it conducts relevant Activity, it should search for professional advice. Being the leading Economic Substance Regulation Services in Dubai, ARC Associates is here to help you! With the right guidance & advice, we will help you to check whether ESR applies to your business or not. You can avail of our services as we become one of the most reliable Economic Substance Consultants in Dubai, Sharjah, Abu Dhabi& all over the UAE.