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ESR Services

Economic Substance Regulations (ESR)

Mantraa Advisory Service   provides comprehensive support for navigating the Economic Substance Regulations (ESR) in the UAE. ESR aims to ensure that businesses demonstrate genuine economic activities within the jurisdiction, aligning with international standards set by the OECD. Our expert services help companies comply with ESR requirements, manage their obligations, and avoid penalties.

Understanding ESR in UAE

Economic Substance Regulations (ESR) are designed to ensure that entities engaged in specific business activities have substantial operations in the UAE. This involves demonstrating that key income-generating activities are conducted within the country. ESR is part of the UAE’s commitment to international standards for transparency and fair taxation.

Applicable Sectors

  • Banking Business
  • Insurance Business
  • Investment Fund Management Business
  • Lease-finance Business
  • Distribution & Service Centre Business
  • Headquarters Business
  • Shipping Business
  • Holding Company Business
  • Intellectual Property Business

ESR Compliance Requirements

  • Conducting core income-generating activities within the UAE.
  • Maintaining an adequate number of qualified employees.
  • Incurring sufficient operating expenditures.
  • Holding physical assets in the UAE.
  • Submitting annual notifications and detailed economic substance reports to regulatory authorities.

Adherence to ESR in UAE

Compliance with ESR is crucial for maintaining fair business practices and avoiding penalties. Companies must provide accurate data to the Regulatory Authority and the National Assessing Authority, demonstrating compliance with the ESR UAE Regulations. Failure to meet these requirements can lead to administrative penalties, fines, or even deregistration.

Administrative Penalties:

  • Penalties for non-compliance can include fines, suspension, or deregistration.
  • Companies have the right to appeal decisions, contesting violations or disproportionate penalties.

How Mantraa Advisory Service Can Help

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Expert Guidance on ESR Compliance

  • Understanding Requirements: Providing clarity on ESR obligations and ensuring your business meets the criteria.
  • Navigating Regulations: Offering support through the complexities of ESR compliance.

Comprehensive ESR Reporting

  • Annual Notifications: Assisting with the preparation and submission of annual ESR notifications.
  • Economic Substance Reports: Helping to draft and file detailed reports on economic substance.

Tailored Solutions

  • Understanding Requirements: Providing clarity on ESR obligations and ensuring your business meets the criteria.
  • Navigating Regulations: Offering support through the complexities of ESR compliance.

Penalty Management

  • Annual Notifications: Assisting with the preparation and submission of annual ESR notifications.
  • Economic Substance Reports: Helping to draft and file detailed reports on economic substance.

Long-Term Success

  • Sustainable Compliance: Ensuring that your business remains compliant with ESR regulations, fostering long-term operational success.
  • Expert Team: Leveraging the expertise of our dedicated team to navigate the ESR landscape efficiently.

Get In Touch

For expert assistance with your ESR Services , reach out to Mantraa Advisory Service:

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