Economic Substance Regulations Notification Form
The Economic Substance Notification form has been issued by the Ministry of Economy. It is a Regulatory Authority for mainland Business in the UAE. All the licensees licensed by the Ministry of Economy need to file an Economic Substance Notification with the Ministry. This Economic Substance Notification is the primary information to be shared with the Authority as a fragment of compliance with Economic Substance Regulations in the UAE. In this article, we will see the important factors of the Economic Substance Regulations Notification Form.
Who needs to file the ESR Notification form in the UAE?
Every natural and legal person in the UAE must submit the ESR notification form. It usually includes all the onshore and free zone companies, partnerships, non-profit businesses, branches, and foundations. In simple words, Economic substance regulation is now mandatory in the modest land of the UAE. Also, it is equally important to know that all such entities, involved in the following activities or delivering the following amenities, have to file the annual ESR Notification.
- Banking
- Insurance
- Headquarters
- Holding company
- Investment fund management
- Lease and finance
- Shipping
- Intellectual property
- Distribution and service center
What is the Information Required in the Form?
The Economic Substance Regulations Notification Form necessitates businesses to provide explicit details to guarantee compliance with local rules and regulations. It includes;
1. Entity Details
Businesses have to provide basic information about their company. It includes the company name, legal form, trade license number, and registered address. This information classifies the entity and confirms that the authorities are conscious of its actions within the applicable jurisdiction.
2. Relevant Activities
One of the key aspects of the form is announcing whether the entity is involved in any of the relevant activities under the Economic Substance Regulations. These activities classically comprise the entities as we discuss above like banking, insurance, etc. Each of these activities has its specific substance obligations.
3. Financial Period
The Economic Substance Regulations Notification Form necessitates entities to stipulate their financial year or reporting period. This assists authorities regulate the timeframe for evaluating compliance.
4. Income Information
If the entity produces income from the relevant activities, it has to report the type and amount of income. This agreement enables to evaluation of whether the entity fulfills the economic substance requirements associated with its activities or not.
5. Parent Company and Group Information
Entities have to be declared whether they are part of a bigger international group. Certain information about the parent company, decisive beneficial owners, and linked group companies is often mandatory.
6. Exemptions
The f Economic Substance Regulations Notification Form may also necessitate information on whether the entity falls under the exemption category or not from ESR. For instance, such as in the case of being a tax-resident in another jurisdiction.
How to file an Economic Substance Regulations Notification Form?
Filing the Economic Substance Regulations Notification Form in the UAE includes some important steps such as;
- The first step is to confirm if your business is involved in any of the relevant activities under ESR, such as banking, insurance, holding companies, etc.
- The next step is to access the official online portal provided by regulatory authorities such as the UAE Ministry of Finance.
- After accessing the official portal, sign up if you don’t have a previous account.
- Collect all the mandatory documents, carefully fill out the form, and double-check for accuracy.
- After completing, submit the form completely and accurately. You will receive confirmation of submission.