ESR Assessment & Advisory — Practical compliance for UAE businesses
AL SAHRAA provides targeted Economic Substance Regulation (ESR) assessments and advisory services to help UAE companies understand obligations, close compliance gaps, and prepare required documentation and notifications.
Overview
Economic Substance Regulations require UAE entities conducting certain relevant activities to demonstrate adequate economic presence. Our ESR Assessment & Advisory service identifies whether your business falls within scope, assesses current substance against the regulatory tests, and recommends practical steps to achieve compliance. We perform a focused review of your business activities, governance, staffing, physical presence and financials; run the ESR tests; and produce a gap analysis and prioritized action plan. We prepare template policies, activity descriptions and supporting records you will need for regulatory submissions and audits. If needed, we assist with preparing filing materials and liaise with local regulatory authorities or auditors on documentation and timelines. We also advise on recordkeeping and internal controls to maintain ongoing compliance and reduce risk at audit time. Our approach is pragmatic and tailored to UAE companies of all sizes, with local knowledge of requirements in Dubai, Ajman and other Emirates. Engagement scope and timelines vary by entity complexity; we will outline deliverables and costs after an initial consultation.
What to prepare
- Company trade license and MOA/LLC agreement
- Recent audited or management financial statements
- Description of business activities and contracts
- Payroll records and staff CVs for relevant activities
- Details of physical premises and lease agreements
- Organizational chart and governance documents
- Intercompany agreements and related-party contracts
- Invoices or evidence supporting revenue streams
How the process works
- Initial consultation and scope confirmation
- Collection of business information and documents
- Substance assessment and ESR testing
- Gap analysis and recommended action plan
- Preparation of documentation, policies and templates
- Assistance with filings, auditor liaison and ongoing monitoring
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
Who needs an ESR assessment in the UAE?
Entities carrying one or more relevant activities (e.g., holding company activities, intellectual property, shipping, headquarters, fund management, distribution and service centre activities) should assess ESR applicability. An initial review determines scope.
What is the typical timeline for an ESR assessment?
A basic assessment and gap analysis can often be completed in 1–3 weeks after document collection; more complex cases requiring interviews or operational changes may take longer. We confirm timelines during the initial consultation.
Can AL SAHRAA submit ESR notifications and reports on our behalf?
We prepare the required documentation and can assist with filing or liaising with regulators where authorized. Specific filing responsibilities and signatures remain with the company unless formal authorization is provided.
What are common compliance gaps businesses face?
Typical gaps include insufficient local staff or decision-making, inadequate physical presence, incomplete documentation of core income-generating activities, and weak recordkeeping or governance evidence.
How does ESR relate to UAE corporate tax?
ESR and corporate tax are separate frameworks: ESR focuses on demonstrating economic substance for certain activities, while corporate tax concerns taxable income. Both may require aligned documentation and financial records.
Related services
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