• Assess whether the business has carried out any Relevant Activity
• Assess the income generated from a Relevant Activity
• Assess the adequacy of resources to carry out the Relevant Activities
• Hold board meetings in the UAE
• Submit the annual notification and file the annual Economic Substance Regulations (ESR) report.
What are the penalties for non-compliance?
• Failure to submit a Notification -AED 20k
• Failure to submit an Economic Substance Report- AED 50k and deemed failure to demonstrate economic substance
• Failure to provide accurate or complete information- AED 50k and deemed failure to demonstrate economic substance.
• Failure to demonstrate sufficient economic substance in the UAE AED 50k. Second consecutive instance of failure- AED 400k. License suspended, withdrawn, or not renewed.