Under the UAE ESR Law, companies that trade over securities exchange and bonds are exempt from following the ESR. The Economic Substance Regulatory ensures that licensed relevant activity companies comply with ESR filing, ESR Notification filing, and the Economic Substance Test. Companies in Mainland, offshore, and free zone are to be considered for the filing as per the ESR. However, they need to run a self-assessment test to check if they are eligible under the scope covered by ESR Law. If you require professional assistance for ESR Filing, you can call us today!
1. ESR for Lease Finance Business in UAE
https://economicsubstanceregulations.com/esr-lease-finance-business-uae/
2. Introduction
UAE empowers the local business to flourish and acquire new heights while
abiding by the laws and regulations.
One such law was introduced by the Cabinet of Ministers Resolution no 31 called
the “Economic Substance Regulation”(ESR).
ESR provides guidance on the “Relevant Activities” and companies “Core Income
Generating Activities” CIGA.
3. What licenses are considered for the Economic
Substance Regulation
1. A limited liability companies
2. A public shareholding company
3. A private shareholding company
4. A joint venture and a partnership company
4. Understanding the Leased Finance Business
● Any company in the UAE is considered a leased financial business if its
activities include financing or providing credit for any consideration.
● If a company offers loans or any other form of credit to a company within UAE
or a foreign country is termed as a Lease finance company.
5. What is the core income Generating activities of a
leased finance Business
1. Agreeing funding terms
2. Identification and acquisition of assets
3. Terms and Duration of the financial leasing
4. Monitoring and revision of any agreements
5. Managing any risks
6. Summary
● ESR ensures that licensed relevant activity companies comply with ESR filing,
ESR Notification filing, and the Economic Substance Test.
● Companies in Mainland, offshore, and free zone are to be considered for the
filing as per the ESR.
7. Contact Us
Call : +971 554828368
Whatsapp : +971 554828368
Mail : sales@farahatco.com
Landline : +97142500251
Visit : https://economicsubstanceregulations.com/e
