No, ESR applies to both mainland and free zone companies conducting relevant activities.
We monitor changes in your activities and adjust compliance measures accordingly to maintain ESR requirements.
ESR-related records should be maintained for at least six years from the end of the financial year.
ESR returns must be filed annually within six months after the end of the financial year.
Adequate substance includes having qualified employees, physical premises, and core income-generating activities in the UAE.
Each relevant activity must separately meet ESR requirements, and we help manage compliance for all applicable activities.
Penalties range from AED 20,000 to AED 400,000 depending on the violation type and frequency.
Companies engaged in relevant activities such as banking, insurance, investment management, shipping, holding company activities, and intellectual property must comply with ESR.