ESR Notification and ESR Report services are offerings provided by professional service firms or consultants to assist companies in the United Arab Emirates (UAE) with compliance with the Economic Substance Regulations (ESR). These services help companies fulfill their obligations under the ESR by facilitating the notification process and preparing and submitting the required Economic Substance Reports (ESRs) to the relevant regulatory authorities.

Here’s a detailed description of ESR Notification and ESR Report services:

ESR Notification Service:

Assessment of Applicability: Professional service firms assess whether the ESR applies to the client’s business activities based on the nature of their operations, revenue streams, and other relevant factors.

Notification Preparation: Assistance is provided in preparing and submitting the ESR notification to the appropriate regulatory authority within the prescribed timeframe, typically within six months from the end of the financial year.

Understanding Requirements: Consultants educate clients on the requirements of the ESR, including the definition of Relevant Activities, substance requirements, reporting obligations, and potential penalties for non-compliance.

Document Preparation: Consultants assist in gathering and organizing the necessary information and documentation required for the ESR notification, such as business activities, financial statements, organizational structure, and other relevant details.

ESR Report Service:

Substance Assessment: Professional service firms assess the substance of the client’s operations to ensure compliance with the ESR requirements, including conducting a review of core income-generating activities (CIGAs), physical presence, and operational expenditures.

ESR Report Preparation: Consultants prepare the Economic Substance Report (ESR) in accordance with the prescribed format and guidelines issued by the relevant regulatory authority. The report includes details of the entity’s activities, income, expenses, assets, employees, and other relevant information.

Financial Analysis: Consultants analyze the financial data and performance metrics of the client’s business to demonstrate substantial economic activity within the UAE and support the findings presented in the ESR.

Compliance Review: The prepared ESR is reviewed to ensure accuracy, completeness, and compliance with regulatory requirements before submission to the regulatory authority.

Submission Assistance: Consultants assist in submitting the ESR to the relevant regulatory authority within the stipulated deadline, typically within 12 months from the end of the financial year, and provide confirmation of submission to the client.

Ongoing Compliance Support:

Monitoring and Updates: Professional service firms provide ongoing support to clients by monitoring changes in the ESR regulations, guidelines, and reporting requirements issued by regulatory authorities and updating clients accordingly.

Compliance Reviews: Consultants conduct periodic reviews of the client’s operations to ensure continued compliance with the ESR requirements and assist in implementing any necessary changes or improvements to maintain compliance.

Audit Support: In the event of regulatory audits or inquiries, consultants provide support to clients by facilitating communication with regulatory authorities, responding to requests for information, and assisting in the resolution of any compliance issues that may arise.

Overall, ESR Notification and ESR Report services are designed to assist companies in the UAE in meeting their obligations under the Economic Substance Regulations, ensuring accurate reporting, and mitigating the risk of penalties for non-compliance. These services provide valuable expertise, guidance, and support to help companies navigate the complexities of ESR compliance effectively.