Introduction

The UAE Economic Substance Regulations (ESR) require certain entities carrying out relevant activities to demonstrate economic substance in the UAE. AL SAHRAA Businessmen Services LLC provides ESR assessment & advisory to help companies in Dubai, Ajman and across the UAE understand their obligations, close compliance gaps, and prepare required documentation and filings.

Key points at a glance

Identify whether your entity is in scope under ESR UAE.

Deliver a practical ESR assessment (gap analysis) and risk profile.

Draft or update ESR policies, governance documents, and Master File where needed.

Advise on economic substance notification and annual filings.

Recommend record-keeping and operational changes to demonstrate substance.

Support engagement with regulators and prepare responses to queries.

What is an ESR assessment?

An ESR assessment determines whether an entity’s activities fall within the ESR scope (such as headquarters, fund management, distribution and service centres, IP, shipping, holding companies) and whether existing activities, staff, expenditure, and decision-making meet the substance requirements UAE regulators expect. The assessment produces a clear, documented position and recommended remediation steps.

Who needs ESR advisory services?

Companies carrying out one or more relevant activities under the Economic Substance Regulations.

Free zone entities and mainland companies in Dubai, Ajman and other emirates.

Holding companies and entities with cross-border arrangements seeking to meet substance requirements.

What an ESR assessment from AL SAHRAA includes

1. Scoping and intake: review of corporate structure, licenses, agreements and financials. 2. Gap analysis: compare current operations against ESR tests (core income-generating activities, management, staff, premises, and expenditure). 3. Policy drafting: ESR policy, substance policies, and internal controls tailored to your business. 4. Documentation checklist: records required to support filings and inspections. 5. Filing support: guidance for economic substance notifications and annual regulatory filings. 6. Remediation plan: practical steps to strengthen substance (e.g., governance, contracts, personnel allocation).

Typical documents and information we review

Trade and commercial licenses

Financial statements

Contracts and service agreements

Payroll and HR records

Board minutes and corporate governance records

Lease or premises documentation

Operational logs and systems showing day-to-day activity

How long does an ESR assessment take?

Timing depends on company size and complexity. A straightforward assessment can be completed in 1–3 weeks after receiving required documents; more complex structures may take longer. AL SAHRAA will provide an estimated timeline during scoping.

Common outcomes and next steps

Confirmed out-of-scope: documented rationale and suggested record-keeping.

In-scope and compliant: documentation and filings prepared.

In-scope with gaps: prioritized remediation plan and support to implement changes.

Frequently asked questions

Do I have to file an economic substance notification?

Most entities carrying out relevant activities must submit an economic substance notification to their regulator within prescribed timelines. AL SAHRAA can confirm your filing obligations and assist with filings.

What happens if I lack sufficient substance?

Regulators may request evidence, impose penalties or require corrective action. The best approach is to remediate promptly—documenting decisions, reallocating activities or enhancing management and staff in the UAE as appropriate.

Can you draft my ESR policy and supporting documents?

Yes. We prepare ESR policies, board resolutions, operational evidence templates, and a documentation pack to support your submissions and inspections.

Will you submit notifications on my behalf?

We provide guidance and can assist with preparing the notification and filing steps. Where required, we can work with your appointed agent or regulator portal to support submission.

How AL SAHRAA adds value

Practical UAE-focused advice covering Dubai, Ajman and other emirates.

Experienced in preparing ESR documentation, policies and remediation plans.

Clear, actionable reports aimed at meeting regulator expectations without unnecessary complexity.

Call to action

To get a tailored ESR assessment and advisory for your business, request a quote from AL SAHRAA Businessmen Services LLC. Contact us through our website or request form to start a scoping call and receive a written proposal and timeline.