Master the Economic Substance Report: Ensure Your UAE Compliance!

Jun 7
Completing the Economic Substance Report Introduction
The Economic Substance Report is an important document that helps ensure businesses operating in the UAE are compliant with local regulations. It collects detailed information about the Licensee, their operations, and their structure. All fields are mandatory unless stated otherwise, and the questions may appear in a non-sequential order based on your responses.

A. Licensee Details
1. Licensee Name
Who?
This is the entity applying, as named on its commercial license.
Example:
If your business is registered as "XYZ Trading LLC," that's the name you use here.
Does the Licensee have a dual license?
What?
This determines if the Licensee has more than one license issued by different authorities.
Why? To identify if the Licensee operates under multiple regulatory jurisdictions.
Example: If XYZ Trading LLC has licenses from both the Dubai Economic Department and Abu Dhabi Department of Economic Development, select "yes."

2.1 Commercial License / Trade License / Permit No.
What? The registration number on the commercial or trade license.
Example: If the number on your license is 12345, enter "12345."

2.2 Licensing Authority
What? The authority that issued the commercial license.
Example: If the Dubai Economic Department issued your license, that's the licensing authority you list.

3. Primary / Main Regulatory Authority
What? The primary authority where the Licensee was first registered.
Why? To determine the main regulatory body overseeing the Licensee’s primary activities.
Example: For XYZ Trading LLC, if the first license was from the Dubai Economic Department, that's your primary regulatory authority.

4. Place of Establishment
What? Confirms if the primary establishment is in a Free Zone or mainland UAE.
Example: If XYZ Trading LLC is in the Jebel Ali Free Zone, you indicate "Free Zone."

5. Registered Office Address
What? The address as stated on the commercial license.
Example: If your license lists "123 Main St, Dubai," that's your registered office address.

6. Offices / Premises (square footage)
What? The size of your offices in the UAE.
Example: If XYZ Trading LLC occupies 2000 square feet, you enter "2000 sq ft."

7. Legal Form
What? The legal status of the Licensee.
Example: If XYZ Trading LLC is a Limited Liability Company, select "LLC."

8. Is the Licensee registered for VAT in the UAE / UAE VAT registration number?
What? Confirms VAT registration and the unique 15-digit VAT number.
Example: If XYZ Trading LLC has VAT number 100123456789000, enter that number.

9. Is the Licensee part of a multinational group?
What? Determines if the Licensee is part of an international corporate structure.
Why? To assess tax obligations and regulatory compliance.
Example: If XYZ Trading LLC has a parent company in the UK, you select "yes."

Is the Licensee wholly owned by the UAE government?
What? Checks if the Licensee is 100% government owned.
Why? For understanding ownership and any special regulatory considerations.
Example: If XYZ Trading LLC is entirely owned by the Dubai government, select "yes."

Conclusion
Completing the Economic Substance Report is essential for ensuring your business adheres to UAE regulations. By providing accurate and detailed information about your Licensee, you help regulatory authorities assess your economic substance and tax obligations effectively. Whether it's confirming your office size, legal form, or your status within a multinational group, each piece of information plays a crucial role in maintaining compliance and transparency.

By carefully filling out each section of the report, you ensure that your business remains in good standing with UAE regulatory authorities, thus safeguarding your operations and promoting a transparent business environment.
Created with