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Are you ready for Economic Substance Regulations (ESR) submissions in 2021?

The Economic Substance Regulations (ESR) apply to companies and other business entities registered in the UAE, including in the Free Zones, that carry out any of the following Relevant Activities during the financial year:

  1. Banking Businesses
  2. Insurance Businesses
  3. Investment Fund Management Businesses
  4. Lease-Finance Businesses
  5. Headquarters Businesses
  6. Shipping Businesses
  7. Holding Company Businesses
  8. Intellectual Property Businesses
  9. Distribution and Service Centre Businesses (Purchasing from Foreign connected persons/ Providing services to Foreign connected persons)

The Company need to check if it carries out one or more of the relevant activities during the financial year, if yes the Company needs to do the  following ESR Compliance:

  • ESR Notification within 6 months from the end of the financial year
  • Conduct an ESR test and submit the report to the concerned authority within 12months from the end of the financial year

Following are the due dates for the Company having financial year as below:

Financial Year ending onNotification Due DateReturn Due Date
31st Dec202030th Jun 202131st Dec 2021
30th Jun 202131st Dec 202130th Jun 2022

Please note penalties for non-compliance would attract:

Non-complianceAmended Penalty Amount  AED
Failure to submit a Notification:20,000
Failure to submit an Economic Substance Report50,000
Providing inaccurate information50,000
Failure to pass ES Test for first year50,000
Failure to pass ES Test for the consecutive year400,000

How can MCA Help?

We are happy to assist you with our expertise on the ESR Compliance by carrying out the High level assessment and support in filing the ESR Notification and ESR Report within the due date. We assure to provide best of our all time services

Contact Details

Email: mcatax@mcagulf.com
Telephone (Dubai UAE): +971 4 3319501
Working Hours: 9AM – 6PM, Sunday to Thursday