Welcome to ESR Compliance with Freelance FinTax Consulting
At Freelance FinTax Consulting, we understand the significance of Economic Substance Reporting (ESR) compliance for businesses in Dubai. ESR regulations are crucial for ensuring transparency and alignment with international standards. Failure to comply with ESR requirements can result in significant penalties and reputational damage.
The UAE implemented the Economic Substance Regulations (ESR) on April 30, 2019, through Cabinet of Ministers Resolution No.31 of 2019. Subsequently, Ministerial Decision No. 215 of 2019 provided guidance on these regulations. According to the ESR, UAE-based businesses engaged in specified activities outlined in the guidance must demonstrate sufficient economic presence by fulfilling the UAE economic substance test. Compliance entails notifying and submitting an annual UAE economic substance report to regulatory authorities for companies undertaking the specified activities.
Our ESR Services
- Impact assessment
- Analysing the economic substance requirements based on relevant activity identified
- Assistance in ensuring timely compliance with the notification filing requirements of the UAE ESR and collating details required therein
- Assistance in ensuring timely compliance with the reporting requirements of the UAE ESR and collating required details in the prescribed reporting form and related declarations
Importance of ESR Compliance
ESR compliance is vital for businesses in Dubai to demonstrate economic substance in the region. By adhering to ESR regulations, companies can enhance transparency, build credibility, and avoid potential penalties.
Consequences of Non-Compliance
Non-compliance with ESR regulations in Dubai can result in significant penalties which may include fines from AED 10,000 to AED 50,000 suspension of a company's license, or even legal action against the company or its directors. The precise sanctions for non-compliance vary depending on the nature and extent of the breach.
Get Started with ESR Compliance Today
Don't wait until it's too late! Contact Freelance FinTax Consulting now to schedule a consultation and learn more about how we can assist you with ESR compliance. Our team is here to provide expert guidance, tailored solutions, and ongoing support to help you meet all your ESR requirements.