Economic Substance Regulations Dubai

ESR Filing Services for French Businesses in the UAE

 

The United Arab Emirates implemented the Economic Substance Regulations (ESR) in 2019, requiring companies engaged in specific activities to demonstrate sufficient economic presence in the UAE. These rules apply not only to local entities but also to branches of international businesses, including French companies operating in the region.

 

If your business qualifies for an exemption, you are not required to prove economic presence. However, you must still file ESR notifications and provide supporting documentation. Non-compliance may result in substantial fines, license suspension, or other penalties.

 

For French entrepreneurs and corporations expanding to Dubai or across the UAE, maintaining ESR compliance is crucial to protecting your operations and reputation.

 

At Flyingcolour® Tax Consultant LLC, we specialize in helping French businesses with:

 

  • Preparing and filing ESR notifications.
  • Submitting annual ESR reports.
  • Identifying exemptions and ensuring proper documentation.
  • Offering practical guidance to avoid penalties and regulatory issues.

 

With our dedicated team of ESR professionals, French companies can confidently operate in the UAE while ensuring full compliance with all regulations.

ESR Specialists Dubai – Filing Annual Economic Substance

Impact Evaluation

Action Plan and Gap Analysis

Filing Reports

Notice of ESR Filing Deadlines and Requirements

Submitting Documents and Summary of Relevant Activities

Activities Covered under the Economic Substances Regulations

Banking Industry

Lease-Finance Enterprise

Business for Holding Companies

Insurance Industry

Corporate Business

Shipping Industry

Business Managing Investment Funds

Intellectual Property Exploitation or Holding

Business for Distribution and Service Centers

The impact of the Economic Substance Regulations (ESR) in the UAE depends on the specific nature of each company’s operations. Every year, entities involved in any “Relevant Activity”—as defined by the ESR framework—are required to submit a detailed report to the appropriate UAE authority.

For Australian businesses with operations or subsidiaries in the UAE, ESR compliance is mandatory. It is a critical requirement for maintaining the legal right to operate within the Emirates. These regulations introduce more stringent reporting and governance obligations compared to the flexibility that existed prior to their enforcement, making proactive compliance and expert guidance essential.

The ESR filing requirements in the UAE mandate detailed disclosure of revenue and expenses associated with each relevant activity, ensuring regulators have a transparent understanding of a company’s operations. This framework is designed to prevent businesses from shifting profits without carrying out genuine, income-generating activities within the UAE.

 

In addition, ESR compliance requires companies to provide information about their management structure, oversight, and staffing levels linked to each Relevant Activity — a significant consideration for Australian multinationals and investors with cross-border operations.

 

While many Australian businesses operating in the UAE may use outsourced or shared-service arrangements, these setups must still satisfy the ESR’s substance and compliance standards. To align with the UAE’s regulations, Australian companies may need to strengthen governance frameworks, refine internal processes, and enhance operational transparency.

 

Making these adjustments is not just about meeting compliance requirements — it’s about ensuring long-term sustainability, investor confidence, and growth in one of the world’s most dynamic business hubs.

Service Spectrum

Flyingcolour® Tax Consultant and J N J Auditing LLC provide a wide range of professional services for French entrepreneurs, SMEs, and multinational companies operating in the UAE. Our services include accounting and bookkeeping, tax advisory, auditing, economic substance regulation (ESR) compliance, anti-money laundering (AML) services, tax residency certificate assistance, payroll management, excise tax services, CFO services, and other regulatory compliance solutions. With a team of experienced professionals, we deliver comprehensive and customized service packages designed to meet the unique needs of French businesses expanding or managing operations in Dubai and across the UAE.

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