AboutBank AccountCareersContact Us
Business Setup
Compliance Services
Our experts will help you understand and comply with various regulatory requirements for businesses.
Get started today
Home>
Services>
Compliance Services
We have a dedicated team of experts who will guide you through the UAE’s regulatory requirements for businesses, including Economic Substance Regulations (ESR) and Ultimate Beneficial Owner (UBO).
Running a business in the UAE can be challenging because there are many laws and regulations that you must comply with. This is where business compliance services come in. A good business compliance service will help ensure that your business practices are legal and correct, and they will keep you up-to-date on all the latest changes to the law. If you’re looking for reliable business compliance services in UAE, then read on! We’ll tell you everything you need to know about business compliance in Dubai.
Business compliance is the process of ensuring that your business practices are in line with the law. This includes making sure that you are aware of all the relevant laws and regulations, and taking steps to ensure that you are compliant with them. It can be difficult to keep track of all the different laws and regulations applicable to your business, but a good business compliance service like ours can help make things easier.
If you’re running a business in the UAE, then you must have a good business compliance service. The reason for this is simple, UAE has several complex laws and regulations, and if you’re not compliant with them, you could face serious penalties. Penalties in the UAE can be much stricter than in other countries and include prison terms, enormous fines and restrictions.
There are many things you should know about business compliance services in the UAE. The first thing is that there is no single standard for business compliance services, so it’s important to make sure the service you choose is right for your business. Important questions to ask a potential compliance expert in Dubai should include: What services do you offer? Are you familiar with the laws and regulations in the UAE? How often do you update your clients on changes to the law? Do you have any case studies or success stories from previous clients? These questions will help you determine whether a particular compliance service is right for your business.
Our business compliance service will help guide you through the complex laws and regulations in UAE. We will keep you updated on any changes to the law, so you won’t get caught out by unexpected changes. We can also help with other areas of compliance such as Registering employees with MOHRE, obtaining a trade licence and filing tax returns.
Economic Substance Regulations (ESR). The ESRs require companies operating in the UAE to preserve a strong UAE economic presence. This is to show that the financial status of the company is transparent and that off-shore accounts are not being abused. If your company earns income from any Relevant Activities, you must complete annual filing requirements. Otherwise, your company could face penalties for not complying with the law. “Relevant Activities” under this law include: Shipping, Insurance, Banking, Holding company, Intellectual property, Lease-finance, Investment fund managing, Distribution or servicing centre, Headquarters. Even if you call any of these activities by another name, if they serve the same function, they would still count as a Relevant Activity under the law. There is no minimum income threshold that is applicable to this law either, so individual UAE entities must all comply regardless of size. If your company conducts any of the Relevant Activities listed, it must file within six months before the end of the financial year on the Ministry of Finance’s (MoF) ESR portal. You’ll have to disclose which activities were conducted, income earned, and whether or not this income was taxed outside of the UAE. Companies with income from Relevant Activities must then prove that they have adequate economic substance in the UAE. To do this, you will have to satisfy the following Economic Substance Tests: Core Income Generating Activity Test, Directed and Managed Test, Adequacy Test. High-risk companies will be required to take enhanced Economic Substance Tests. This would companies that have work that includes intellectual property. The impacts of COVID-19 are also considered, including travel restrictions, but the facts should be carefully reviewed by companies and documentation should still reflect any changes made. If your company has earned income from Relevant Activities, it must file a report on the MoF online portal within 12 months of the end of the related financial year. During this time, your company will disclose a lot of information, such as: Whether Economic Substance Tests were completed, Details surrounding outsourced providers, Operations expenditure and number of full-time employees per Relevant Activity. Part of the reason this transparency is required is so that companies are not able to come up with overly-complex corporate arrangements to commit fraud, launder money, dodge taxes, or conceal wealth. When you have a strong economic presence in the UAE, this is showing clarity regarding your company’s financial status and allows the government to see that you’re not trying to hide your crucial assets. If your company conducts any of the Relevant Activities listed, it must file within six months before the end of the financial year on the Ministry of Finance’s ESR portal. Our team at BizVibez can help you check whether or not you’re meeting the Economic Substance Tests requirements. If you do meet the requirements, we can also help you file the ES Notification and ES Report.
An Ultimate Beneficial Owner is a person that is the leading beneficiary when an establishment originates a transaction. Who comprises a UBO will vary from jurisdiction to jurisdiction, but it is usually defined as a specific person that has capital or voting privileges in the base entity. Generally, this is the person that owns or manages their own company. To identify UBOs, a bank will: Obtain and review the organisation’s credentials, Look at the chain of ownership, Determine who falls under the definition of UBO, Perform an AML or KYC check. To stay compliant with UBO regulations, you must register your UBOs. Article five of the UBO Regulations provides an outline for how you can determine who your UBO is (before the bank does). Your UBO needs to have the right to vote, own, or control with a minimum of 25% shareholding in the company. This is through direct or indirect means of ownership. They also may have the right to dismiss or appoint directors and managers within the company. If no one satisfies these requirements from your company, then the UBO is anyone else that exercises the main control over the company. If there is still no sure answer, the UBO would be the person in charge of senior management. Next, the company must have a register of nominee directors and managers. This register needs to be detailed about the individuals nominated and must contain information about acting on behalf of a third party’s instructions. The company must also have a register of shareholders. This will include the number of ownership interests that each shareholder in the company owns. It will also explain the voting rights of each party and the date that these rights were acquired. This information will help ensure that you’re selecting the correct UBO before you register. It also helps you stay compliant with the new laws, as well as the Commercial Companies Law. Regulators have been targeting money laundering and terrorism financing in the past couple of decades. Some defrauding groups use off-shore accounts to conceal their financial activity. Investigators trace any transactions that seem suspicious. They often lead to fake addresses, fictional PO boxes, or the addresses of people that have no involvement. Due to this, UBO regulations have started to appear across the world, including in the UAE. Every company has a specific risk with these issues, so it’s crucial to take measures that mitigate the risk! The UAE requires that Ultimate Beneficial Owners are registered so that transactions are transparent across all free zone and mainland operating companies. These regulations are in place to ensure that you know who you are doing business with, avoid criminal transactions, and stay within the confines of UAE law. By working with our team, you can register your UBO and complete the UBO declaration easily. We will offer our mandatory compliance services regarding the UAE’s law. This way, you can avoid fines or penalties from the government. Book a consultation with one of our professionals today so that you can get started!
If you’re looking for the best business compliance services in Dubai, then BizVibez can help. We have a team of experts who are knowledgeable about the laws and regulations in the UAE and can help your business to stay compliant. Get in touch today to find out more about the benefits of business compliance services.