The UAE has cancelled ESR notifications and reports for current and future financial years. If your business operated during the ESR period, though, your history may still need attention. We review your past position, advise on anything outstanding and help you respond if the authorities get in touch.
The UAE introduced the Economic Substance Regulations in 2019 to make sure businesses carrying out certain activities had a genuine economic presence in the country. Businesses in the relevant categories had to file annual ESR notifications and reports with the Ministry of Finance.
Important update: The Ministry of Finance has officially cancelled the ESR annual notification and reporting requirement for financial years ending after 31 December 2022. Businesses no longer need to file ESR notifications or reports for current or future financial years.
That does not close the book for everyone. If your business was active during the ESR period, which covers financial years ending on or before 31 December 2022, some matters can still come back to you.
We check whether your business was in scope for each prior financial year and whether your filings were complete.
We help you understand and respond to communications from the Ministry of Finance or your regulatory authority.
We advise on outstanding obligations and prepare the records you need for due diligence.
Our team reviews your ESR history, assesses your position and supports you through anything that still needs resolving.
A structured look at your notifications, reports and records for prior financial years
A formal view on whether your business was in scope for any financial year in the ESR period
Clear guidance on any unfiled or incomplete notifications or reports
Practical help to resolve gaps in your historical position where required
Support in responding to queries, notices or assessments from the Ministry of Finance or your regulatory authority
Help understanding your options if your business was penalised for non-compliance
Preparing your ESR history for acquisitions, investor reviews and other due diligence
A conversation with our team before you respond to the authorities or take any step
ESR filing has stopped, but your ESR history may still be relevant in these situations.
Ask About Your PositionYou have unfiled or incomplete ESR notifications or reports for prior periods
You have received a query, notice or assessment from the Ministry of Finance or your regulatory authority
Your business was penalised for non-compliance and you want to understand your options
You are going through due diligence, an acquisition or an investor review that needs a clean, documented ESR history
You are unsure whether your business was in scope and want a formal review of your prior-year position
ESR applied to UAE businesses earning income from any of nine relevant activities: banking, insurance, investment fund management, lease finance, headquarters, shipping, holding company, intellectual property, and distribution and service centre. If your business carried out any of these during the ESR period, a review of your history is worth considering.
Banking, insurance, investment fund management, lease finance and holding company businesses.
Headquarters and shipping activities.
Holding intellectual property assets and earning income from them.
Distribution or service centre activities carried out for foreign related parties.
Historical ESR issues tend to surface at inconvenient times, such as during a sale, an investor review or a regulator’s follow-up. Knowing your position early gives you room to act calmly instead of reacting under pressure.
If you are unsure about your ESR position for any past period, or you have received a communication from the authorities, speak to us before you respond or take any action.
Speak to Our TeamWe go through your licence details, financial year-ends and any ESR filings or correspondence you hold.
We assess whether your business was in scope for each relevant financial year and where any gaps sit.
We explain your options and, where needed, set out the steps to resolve outstanding matters.
We help you respond to the authorities and prepare the documentation you need for due diligence.
ESR filing may be over, but your history still counts. Our consultants will review your prior-year position and advise on what, if anything, needs to be done. If you have received a notice or query, talk to us first.
Speak to our specialists for a review of your historical ESR position and guidance on next steps.
This page provides general information about the UAE Economic Substance Regulations. It does not constitute legal or regulatory advice. ESR obligations depend on your specific business activities, financial year-end, and regulatory authority. Please consult a qualified adviser to assess your individual position.