By the ratification of Cabinet Decision No. 31/2019 on 30th of April 2019, the UAE officially launched the Economic Substance Regulations (also referred to as the “ESR” or “Regulations”. An authoritative instruction stipulating details on its execution and responsible Regulatory Authorities were issued further on.
Guidance concerning the method, form, and time of submission for the notifications and reports have been anticipated. DIFC’s recent presentation shed light to these through verbally declaring the 31st of March 2020 as the deadline for the tendering of the initial notification period (effective from 1st of January) and validating the jurisdiction of the Registrar of Companies (RoC) as the Regulatory Authority in the Free Zone to which notifications must be submitted to.
Although further guidance is anticipated in the future, it is of paramount importance for any affected Licensee to begin the assessment of its existing situation and ensure that it complies with ESR to steer clear of penalties.
How can Hensley&Cook help?
Having a proper and complete understanding of ESR is the key to ensuring that you make the right and timely decisions for your firm.
To get started, ask yourself the following questions:
- Is my company within the scope of the newly issued legislation?
- If so, is it performing one or more of the listed Relevant Activities?
- Will it be able to pass the economic substance exam?
Whichever it may be, Hensley & Cook offers you the support you need in evaluating the effect of the new legislation on your company. We provide initial evaluations of your firm’s current compliance duties, and where compulsory, assist you in defining a strategy and executing a bespoke course of action.
We understand the complexities entailed in ensuring that your business conforms to its statutory and regulatory duties. By outsourcing this function to us, conforming to your duties becomes a smooth process. This, in turn, enables you to maintain your focus on managing your operations and ensuring the growth of your enterprise.
Our knowledgeable professionals are more than delighted to offer an insightful and in-depth discussion regarding the specific requirements of your company in light of the newly enacted economic substance law. With our proven track record in the industry, we are the right business management consultant in the UAE.
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Hensley&Cook is one of the leading business advisory service and corporate service providers in the industry, with global offices in the United Arab Emirates, Seychelles and the Philippines. Taking pride of having a team of multilingual experts, we help our valued clients examine the legal framework, implication on tax, availability of finance, market potential and the risks factors entailed in starting up a business or protecting and safeguarding their assets through effective estate planing. We follow high moral and ethical values with stringent conformity to tax and other legal requirements to ensure effective solutions tailored to every business’ specific needs.