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) varies depending on the type of business activity carried out. Under the ESR framework, each relevant entity—as defined by the resolution—must annually submit information to the designated regulatory authority regarding its relevant activities.

 

French businesses operating in Dubai and the UAE that fall under ESR requirements are obliged to prepare and file a comprehensive ESR report every year. This includes detailed disclosures to demonstrate that their operations maintain sufficient economic substance within the UAE.

 

While ESR compliance ensures that French companies can continue their operations without interruption, it also introduces greater scrutiny and reduced flexibility compared to the pre-ESR environment. Therefore, proactive compliance and proper documentation are essential to avoid fines, penalties, or business license restrictions.

When revenues and costs for each function are disclosed, the Regulatory Authority obtains a transparent view of an entity’s performance. This requirement is designed to prevent profit shifting without genuine local economic activity.

 

Under the Economic Substance Regulations (ESR), businesses must now provide detailed reporting on the management, supervision, and staffing levels connected to their Relevant Activities. This shift has a significant impact on multinational groups, particularly those with complex cross-border operations.

 

While many multinational companies rely on third-party service providers to perform certain functions, it is essential that these arrangements still meet ESR compliance standards. For companies from the UK, France, and other jurisdictions operating in the UAE, this often requires a review and reform of governance models, staffing structures, and operational processes.

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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