The Economic Substance Regulations (ESR) require companies on the mainland and free zones, and other business forms that carry out any of the 'Relevant Activities' (PDF, 1MB), to maintain an adequate ‘economic presence’ in the UAE. 

Entities that are within the scope of the ESR are required to submit an annual notification form and an Economic Substance Report to their regulatory authority within 12 months from the end of their financial year.

An entity is not required to meet the Economic Substance Test nor file an Economic Substance Report if it has not earned income from a ‘Relevant Activity’ or if it meets the conditions for being exempt.