ESR Compliance UAE – Expert Filing & Advisory Services | Pinnacler
ESR Compliance UAE – Simplified by Pinnacler
Economic Substance Regulations (ESR) were introduced in the UAE to ensure that businesses engaging in certain activities have real economic presence in the country. All mainland, freezone, and offshore companies carrying out relevant activities must comply with ESR requirements to avoid penalties.
At Pinnacler, we make ESR compliance simple. Our experts assist businesses in preparing ESR notifications, ESR reports, advisory, and gap analysis to ensure full compliance with UAE laws.
Why ESR Compliance is Important?
Avoid heavy penalties and legal issues.
Ensure your company meets UAE regulatory requirements.
Strengthen business reputation and transparency.
Our ESR Compliance Services
ESR Notification Preparation & Filing
ESR Report Preparation & Submission to Authorities
ESR Gap Analysis & Compliance Advisory
ESR Impact Assessment
PINNACLER Team Assistance
PINNACLER team will assist you in the below mentioned activities
- Assist in ESR Notification Preparation and Submission to Authorities
- Assist in ESR Report Preparation and Submission to Authorities
- ESR Impact Assessment and Gap Analysis
ESR Applicability
ESR requires all businesses having a commercial license, certificate of incorporation or similar permits issued by any regulatory authority in UAE (licensees) carrying out one or more Relevant Activity to substantiate adequate economic substance in the UAE. Whereas ESR excludes UAE licensees with direct or indirect holding of at least 51% by any UAE Government, Governmental authority and/or body.
Recent Amendment
In recognition of the UAE’s introduction of a comprehensive Corporate Tax regime, the Regulations were further amended by Cabinet of Ministers Resolution No. 98 of 2024 to remove the requirement for businesses to submit Notifications and ES Reports for financial years ending after 31 December 2022.
ESR Regulations
The Economic Substance Regulations (ESR) require companies on the mainland and free zones, and other business forms that carry out any of the ‘Relevant Activities’ (PDF, 1MB), to maintain an adequate ‘economic presence’ in the UAE.
Entities that are within the scope of the ESR are required to submit an annual notification form and an Economic Substance Report to their regulatory authority within 12 months from the end of their financial year.
An entity is not required to meet the Economic Substance Test nor file an Economic Substance Report if it has not earned income from a ‘Relevant Activity’ or if it meets the conditions for being exempt.