Practical ESR Assessment & Advisory for UAE Businesses
Assess your company’s position under the UAE Economic Substance Regulations and receive clear, actionable advice on policies, documentation and filings to meet regulatory expectations in Dubai, Ajman and across the UAE.
Overview
We conduct a focused ESR assessment to determine whether your activities meet UAE economic substance tests and where documentation or substance is lacking. Our review identifies gaps in governance, operational presence and supporting records. Based on the assessment we provide a concise remediation plan: recommended changes to contracts, staff allocation, physical presence and financial reporting to improve substance. We draft or update ESR policies and prepare the information needed for regulatory notifications. We support preparation and submission of ESR notifications and responses, and coordinate with your finance and HR teams to collect required evidence. We also advise on alignment with corporate tax and VAT considerations to avoid duplicate gaps. Our service is designed for practical implementation: clear timelines, prioritized actions, and optional ongoing monitoring to help maintain compliance as your business evolves.
What to prepare
- Trade license and company registration documents
- Memorandum and Articles of Association (MOA/AOA)
- Latest audited or management financial statements
- List of core income-generating activities and related contracts
- Payroll records and proof of staff presence in the UAE
- Lease agreements or evidence of physical premises
- Invoices and client contract details demonstrating revenue sources
- Organization chart and governance documents
How the process works
- Initial consultation to understand your legal entity, activities and reporting timeline
- Request and review of corporate documents, contracts, financials and staffing records
- Conduct substance tests and gap analysis against ESR criteria
- Provide remediation plan and draft or update ESR policies and internal controls
- Support preparation and submission of ESR notifications and ongoing monitoring recommendations
Why clients choose AL SAHRAA
- Admin-reviewed quotations before you proceed.
- Document coordination and progress tracking in one portal.
- Support for business, compliance, visa, insurance, and IT-related requests.
- Clear request history, updates, and delivery follow-up.
Frequently asked questions
What is the UAE ESR and who must comply?
The Economic Substance Regulations require UAE entities carrying out certain “Relevant Activities” to demonstrate adequate economic presence. Companies performing activities such as headquarters, finance, intellectual property, shipping or holding must assess applicability.
How long does an ESR assessment take?
A typical assessment and gap analysis takes 1–3 weeks depending on document availability and entity complexity. Remediation timelines vary by the recommended actions.
What evidence is needed to demonstrate economic substance?
Common evidence includes local staff and payroll, physical premises, management minutes, contracts showing decision-making in the UAE, and financial records linking activity to UAE operations.
Will you prepare and file ESR notifications?
Yes — we can prepare supporting documentation and assist with submission of ESR notifications and responses. We do not guarantee regulatory outcomes but provide accurate, submission-ready materials.
How does ESR relate to corporate tax and VAT?
ESR compliance is complementary to corporate tax and VAT obligations. Gaps in substance can affect tax positions; we recommend coordinating ESR remediation with corporate tax and VAT compliance reviews.
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