Financial Consultation in Dubai, Abu Dhabi, Sharjah, UAE

 Economic Substance Regulation: Why You Should Not Delay In Filing 

If you run a business in Sharjah, UAE, you must have heard of the ESR (Economic Substance Regulations). Complying with these rules is a must to help jurisdictions that offer low tax liabilities to manage their businesses. Businesses should go for third-party economic substance regulation services from firms like Spicer Pegler to maintain a record. 

The Areas Covered in the ESR

The Organization for Economic Cooperation and Development lays down rules for companies to conduct their duties in their country or jurisdiction. It states this to ensure businesses get registration in the country and not just for tax benefits. 

In recent times we are seeing a change in this ESR, to be precise, on the 30th April 2019 when the UAE laid down special rules for the businesses based here. The firms doing business in core revenue-generation areas like finance, banking, investment, shipping, and distribution services should be running in the UAE and performing all the CIGA activities. 

It should have a specific number of staff members, have annual operational expenses and facilities here in the UAE for its operations as well. 

Which businesses should go for these compliances of economic substance notification, Dubai, Sharjah, UAE-based? The lease finance business, headquarters of businesses, shipping, and holding companies, among others, will have to file a notification. 

How Businesses can Comply with ESR

Hiring a third-party firm for economic substance reporting Dubai, Sharjah, UAE-based is the first task to do. They will do a thorough investigation of the papers and the valid documents that you have. Based on that, you can go for filing the notification as well as the reporting. All the UAE-based business and license-holding entities carrying what falls under the ‘Relevant Activities’ in the financial year will need to file. 

The Reporting and the Fines

If the business is going for the economic substance reporting Dubai, Sharjah, UAE-based, for the first time, it has to hire a third-party company to help them. The reporting should offer clear data on the number of employees, the location of the business activities, the value of the income from the ‘relevant activities.’ There should also be proper details on the number of people doing the activities and the equipment used. 

Such reporting in time can save your business and save the thousands you would otherwise have to spend in penalties or even revoke your business license. 

Contact us:

Clover Bay Tower,

Office 2005, P.O.Box 237477

Business Bay, Dubai – UAE

Phone: +971 4 878 6553

Fax: +971 4 878 6534

Email: info@spicerpegler.com