The Economic Substance Regulations (ESR) were introduced by the UAE to align with global standards (OECD and EU) concerning tax transparency and the prevention of harmful tax practices. ESR Registration is the mandatory requirement for all UAE entities—both mainland and Free Zone—that conduct specific "Relevant Activities" to demonstrate a genuine economic presence in the country.
Our ESR UAE services are designed to help you meet every requirement under the ESR regulations, from start to finish.
Here’s how we help:
Introduced in 2019 under Cabinet Resolution No. (31), the Economic Substance Regulations (ESR) were adopted to align the UAE with international standards set by the OECD’s BEPS framework. These rules apply to companies operating in Mainland, Free Zones, and Offshore jurisdictions in the UAE.
The primary goal of the ESR is to ensure that businesses do not use the UAE’s tax-friendly environment simply as a legal base without conducting real, substantial economic activity here. This proves a genuine presence and ensures transparency in the global tax landscape.
To pass the Economic Substance Test, your business must prove that it conducts **Core Income-Generating Activities (CIGA)** in the UAE and meets key criteria:
If your company is involved in relevant activities like holding, shipping, service centers, IP businesses, etc., the ESR Test applies to you. We assist in ensuring your structure meets these strict requirements.
The deadlines for economic substance annual reporting and registration are tight. Missing them can lead to fines and unwanted audits.
Let us handle your ESR registration, so you can focus on running your business.
Talk to our experts today and stay ESR-compliant with confidence.
