Companies operating in the UAE conducting relevant activities for the financial year commencing on or after 1st April 2021 and ending on 31st March 2022 must submit ESR notification by September 30. The relevant activities as mentioned are any of the following:
- Banking Business
- Insurance Business
- Investment Fund Management Business
- Lease-Finance Business
- Headquarter Business
- Shipping Business
- Holding Company Business
- Intellectual Property Business
- Distribution and Service Centre Business
The companies that fall within the scope of ESR includes licensees and exempted licensees. Companies should conduct an in-depth assessments beyond the trade license to determine whether they are the licensee under the ESR.
Licensee must submit both ESR notification and ESR Report whereas the exempted licensee is required to file only ESR notification.
What is included in the ESR notification?
- Relevant financial year
- Relevant activity carried out
- State whether relevant income has been earned
- If at least 51% of the business is owned, directly or indirectly, by the Federal or an Emirate Government, or a UAE Government body or authority
- Any other documents requested by the Regulatory Authority
Along with this an exempted licensees must submit evidence that substantiates their exempted status. An exempted licensees can be an investment fund, entities that are tax residents outside the UAE, a company wholly owned by one or more residents in the UAE given its not part of an MNC group and conducts business only in the UAE or Foreign company branches whose Relevant Income is taxed outside the UAE.