On April 30 2019, the UAE Cabinet issued Cabinet of Ministers Resolution No. 31 of 2019 concerning Economic Substance Regulations in the UAE (the Regulations), and the guidance on its application was issued on 11 September 2019. This served as one of the main requirements to remove UAE from the EU blacklist on 10 October 2019. The main objective of the ESR was to ascertain that certain UAE entities that indulge in certain activities as part of their regular affairs, do not artificially attract profits that are disproportionate to the scope of their UAE activities.
With the first financial year reportable being 2019, the company secretarial services become essential for Dubai businesses to answer key questions on compliance, and provide the required information to the regulatory authorities. Our expert advisors on company secretarial services will guide you through the entire process.
Company Secretarial Services
Under the UAE Government guidelines, and based on the scrutiny of the regulations by our expert advisors on company secretarial services, our initial assessment is that Dubai or UAE companies need to subject themselves to the regulations if they meet the economic substance test. The company secretarial services will help you determine if the license and relevant activity are managed in Dubai or UAE, and whether you have adequate employees performing such activities.
This means that one key objective of the company secretarial services is to meet the reporting requirements as per the Government guidelines issued in 2019:-
Through the company secretary services from Dubai, we would provide assessment guidance on whether you qualify to report your income under the economic substance regulations. Once this is demonstrated, our company secretary services will determine the scope and expanse of said activity and the economic substance.
The other main objective of company secretarial services is to guide the Dubai companies so that lack of compliance does not lead to any commensurate penalties. Under our company secretarial services, we ensure that you do not fall under the penalty category, whether it be failure of a Dubai company to report accurate information or the failure to demonstrate economic substance in Dubai or UAE.