Clear, Practical ESR Assessment & Advisory for UAE Businesses
AL SAHRAA provides tailored Economic Substance Regulation (ESR) assessments and advisory services to help UAE companies determine applicability, document economic substance, and meet filing obligations in Dubai, Ajman and across the UAE.
Overview
AL SAHRAA conducts a structured ESR assessment to determine whether your entity conducts relevant activities under UAE regulations and whether the economic substance test applies. We analyze activity-level facts, revenue sources, and governance to give a clear, actionable outcome. If ESR applies, we prepare the necessary evidence and documentation: functional and decision-making maps, substance indicators, and operational records that demonstrate core income-generating activities in the UAE. Our advisory prioritizes practical steps you can implement quickly with minimal disruption. We also support ongoing ESR compliance, including annual notifications and regulatory filings, remediation guidance for identified gaps, and coordination with auditors or in-house teams to ensure consistent record-keeping. Our approach is client-focused and aligned with relevant free zone and mainland filing regimes.
What to prepare
- Entity incorporation documents (license, MOA/ADGM/RAK documents)
- Latest audited financial statements or management accounts
- Organizational chart and list of directors/shareholders
- Contracts and invoices related to relevant activities
- Details of physical premises, employees, and payroll for the entity
- Board minutes and evidence of decision-making for core income-generating activities
- Any prior ESR notifications or correspondence with regulatory authorities
How the process works
- Initial intake and document review to understand corporate structure and activities
- Identify relevant activities and assess ESR applicability per entity
- Map functions, assets, and decision-making to evidence economic substance
- Prepare required documentation and recommended governance or operational changes
- Support filing of ESR notifications and annual reports; advise on remediation if gaps found
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 ESR and who must comply?
ESR (Economic Substance Regulation) requires UAE entities conducting specified relevant activities to demonstrate adequate economic presence in the UAE. Applicability depends on the specific business activities performed by the entity.
How do you determine if my company is subject to ESR?
We review your company’s activities, revenue streams, contractual arrangements, and where key decisions and functions are performed to decide whether the entity conducts relevant activities and must meet the economic substance test.
What evidence is typically needed to show economic substance?
Common evidence includes physical premises, employee records and payroll, proof of management and decision-making in the UAE, contracts, financial records, and documentation of core income-generating activities.
Can you help with remediation if we’re non-compliant?
Yes. We assess gaps, recommend practical operational and governance changes, and assist in preparing remediation documentation and communications to regulators where appropriate.
Do you handle ESR filings for free zones and mainland companies?
We advise entities in both free zones and mainland jurisdictions, tailoring recommendations to local regulator requirements and helping prepare required notifications and annual reports.
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