As we are aware that UAE introduced resolution No. 31 of 2019 concerning Economic Substance Regulation as per their commitment to OECD Framework as a member state. The resolution was passed on 30th April 2019 and guidance for regulation was issued on 11th Sep 2019.
This Regulation required UAE licensed onshore, free zone and Offshore Companies to file the notification and report for economic presence in the UAE for the below relevant activities:
Banking Business
Insurance Business
Investment Fund management Business
Lease - Finance Business
Headquarters Business
Shipping Business
Holding Company Business
Intellectual property Business (“IP")
Distribution and Service Centre Business
The companies which are based in mainland or free-zone, operating in the mainland or offshore for any business activity may need to submit their notification form.
What’s required?
The licensees are required to submit notification to the relevant authority on or before 30th June 2020. Failure to comply with the filing of notification is subject to penalties ranging from AED 10k to 50K for the first-time instance of non compliance and AED 100k to AED 300k for any subsequent non-compliance. Certain authorities have made it mandatory for submission of Notification form for all licensed licensees.
Below are two types of filing required depending on the relevant activities and its CIGA:
Kindly get in touch with us for efficient and professional support to comply with the Economic Substance Regulations.
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