Business Activities, subject to Compliance and Annual Reporting under the UAE Economic Substance Regulation Rules :

Economic Substance Report is called upon by the respective authority controlling the respective business activity in UAE and in case of free zone the respective licensing authority , where an entity (company) is based and got the trade license issued from.  This is applicable to the 9 business activities only. 
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Detailed analysis of the business activities under the rules and the respective specified authority under the UAE  Economic Substance Regulation Rules : 

Sr. No.	Relevant Activity	​Current Core Income Generating Activities	​​Regulatory Authority
1	Banking Business	​Raising funds, managing risk including credit, currency and interest risk. Taking hedging positions. Providing loans, credit or other financial services to customers. Managing capital and preparing reports to investors or any government authority with functions relating to the supervision or regulation of such business.	​UAE Central Bank The competent authority in the Financial Free Zone for the Banking Businesses
2	Insurance Business	​ Predicting and calculating risk. Insuring or re-insuring against risk and providing Insurance Business services to clients. Underwriting insurance and reinsurance.	​Insurance Authority The competent authority in the Free Zone and Financial Free zone for the Insurance Business
3	​ Investment Fund Management Business	Taking decisions on the holding and selling of investments. Calculating risk and reserves. Taking decisions on currency or interest fluctuations and hedging positions. Preparing reports to investors or any government authority with functions relating to the supervision or regulation of such business.	​Securities and Commodities Authority The competent authority in the Free Zone and Financial Free zone for the Investment Fund Management Business
4	​ Lease-Finance Business	​ Agreeing funding terms. Identifying and acquiring assets to be leased (in the case of leasing). Setting the terms and duration of any financing or leasing. Monitoring and revising any agreements. Managing any risks.	​UAE Central Bank The competent authority in the Free Zone and Financial Free zone for the Lease-Finance Business
​5.	​ Headquarter Business	​Taking relevant management decisions. Incurring operating expenditures on behalf of group entities. Coordinating group activities.	​Ministry of Economy The competent authority in the Free Zone and Financial Free zone for the Headquarter Business
6.	Shipping Business	Managing crew (including hiring, paying and overseeing crew members). Overhauling and maintaining ships. Overseeing and tracking shipping. Determining what goods to order and when to deliver them, organising and overseeing voyages.	​Ministry of Economy The competent authority in the Free Zone and Financial Free zone for the Shipping Business
7.	​Holding Company Business	​Activities related to a Holding Company Business.	​Ministry of Economy 2. The competent authority in the Free Zone and Financial Free zone for the Holding Company Business
8.	​Intellectual Property Business	​ Taking strategic decisions and managing (as well as bearing) the principal risks related to development and subsequent exploitation of the intangible asset generating income. Taking the strategic decisions and managing (as well as bearing) the principal risks relating to acquisition by third parties and subsequent exploitation and protection of the intangible asset. Carrying on the ancillary trading activities through which the intangible assets are exploited leading to the generation of income from third parties.	​ Ministry of Economy The competent authority in the Free Zone and Financial Free zone for the Intellectual Property Business
9.	​Distribution and Service Centre Business	Transporting and storing component parts, materials or goods ready for sale. Managing inventories. Taking orders. Providing consulting or other administrative services.	​Ministry of Economy The competent authority in the Free Zone and Financial Free zone for the Distribution and Service Centre Business

Compliance required under Economic Substance Regulations 

What are economic Economic Substance Regulations 

Activities subject to compliance under Economic Substance Regulations

Economic Substance Regulations in United Arab Emirates

For more information on how Gupta Accountants could assist you in compliance with UAE  Economic Substance Regulation Rules, ​contact us today. ​

Gupta Accountants competent team of chartered accountants in Dubai, provides best supports at all the stages of the compliance audit for the companies registered under free zones established in the emirates of  Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah. 
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