Tag: ADGM

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Understanding ESR in UAE: Are Branches Subject to the Regulations?

ESR applicability to branches depends on specific factors.

Are branches subject to the Regulations?

The answer to whether branches are subject to the ESR depends on certain factors. It’s crucial to note that ESR applies to entities that engage in “Relevant Activities” within the UAE. These activities include:

  1. Banking Business
  2. Insurance Business
  3. Investment Fund Management Business
  4. Lease-Finance Business
  5. Headquarters Business
  6. Shipping Business
  7. Holding Company Business
  8. Intellectual Property Business
  9. Distribution and Service Centre Business

If a branch conducts any of the relevant activities mentioned above, it falls under the purview of the ESR. However, if the branch solely performs administrative or support functions and does not engage in any relevant activity, it may be exempted from the ESR requirements.

Where do I report the details of my branch?

If your branch is subject to the ESR, it is crucial to understand the reporting obligations associated with it. The Regulatory Authority in the UAE, the Ministry of Finance, has designated the Federal Tax Authority (FTA) as the entity responsible for collecting and administering ESR-related information.

When reporting the details of your branch, you will need to provide the following information:

  1. Entity Information: Include details such as the legal name, trade name, and trade license of the branch.
  2. Activities: Clearly specify the nature of activities carried out by the branch, ensuring they align with the relevant activities listed under the ESR.
  3. Financial Information: Provide financial statements and relevant financial data for the branch.
  4. Employees: Disclose the number of employees engaged in the branch’s activities.
  5. Physical Assets: Report the value and location of physical assets used by the branch in its operations.
  6. Core Income-Generating Activities (CIGAs): Identify and describe the CIGAs performed by the branch in the UAE.
  7. Confirmation: Declare that the branch has met the Economic Substance Test and attach any supporting documentation if required.

Conclusion:

Compliance with the Economic Substance Regulations is crucial for businesses operating branches in the UAE. Determining whether your branch falls under the scope of ESR is essential, as it will dictate your reporting obligations. If your branch engages in relevant activities, it must report the necessary details to the Federal Tax Authority (FTA) in accordance with the regulations.

We hope this article has provided you with valuable insights into the treatment of branches under the ESR and the reporting process. Stay tuned for our next blog, where we will explore another relevant topic related to Economic Substance Regulations in the UAE.

Disclaimer: The information provided in this article is for general informational purposes only and should not be considered legal or professional advice.

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Determining Economic Substance Regulation (ESR) Applicability for Your Business in the UAE

How to determine if your business is subject to Economic Substance Regulation (ESR) requirements in the UAE?

As the deadline for Economic Substance Regulation (ESR) compliance approaches in the UAE, businesses must ensure they understand if they fall under the scope of the regulation. ESR requires businesses in certain sectors to demonstrate economic substance in the UAE, and failure to comply could result in significant penalties. In this article, we will explain how to determine if your business is subject to ESR requirements in the UAE.

Determine if your business falls within the scope of ESR: ESR applies to businesses that undertake “relevant activities,” including banking, insurance, intellectual property, shipping, and holding company activities. Review your business activities to determine if they fall under any of the relevant activities outlined in the regulation.

Assess the level of activity conducted in the UAE: If your business engages in relevant activities, the next step is to determine if there is sufficient economic substance in the UAE. This involves assessing the level of activity, assets, and employees based in the UAE.

Identify if your business is a “Licensee”: ESR requirements apply to businesses that are licensed in the UAE, including free zone entities. If your business holds a license to operate in the UAE, it is likely subject to ESR requirements.

Determine if your business is exempt: Certain entities are exempt from ESR requirements, including entities that are tax-resident outside the UAE, and those that are wholly owned by UAE residents. Review the regulation to determine if your business qualifies for an exemption.

In conclusion, determining if your business is subject to ESR requirements in the UAE requires a thorough review of the regulation, your business activities, and presence in the UAE. If you are unsure about whether your business is compliant with ESR regulations, seek advice from a qualified professional to avoid penalties and ensure compliance before the June deadline.

Disclaimer: The information provided in this article is for general informational purposes only and should not be considered legal or professional advice.

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News & Press Releases

ADGM Annual Account Submission 2024

Things to Put in Mind for Successful Annual ADGM Submissions for 2024

If you are running a business in Abu Dhabi Global Market (ADGM), you are required to submit your annual accounts to the Registrar of Companies. This process can be quite overwhelming, but it is important to remember that accuracy is key. Here are some things to keep in mind when filling out your ADGM annual account submission:

It is imperative to comprehend the prerequisite obligations before embarking on completing the yearly account submission. The Abu Dhabi Global Market mandates several financial statements, namely a balance sheet, profit and loss statement, and cash flow statement. Ensuring that all essential paperwork and particulars are prepared ahead of time will facilitate a smooth progression in the process.

Be Accurate: When filling out your annual account submission, accuracy is key. Any errors or omissions could lead to penalties or fines. Double-check your figures and make sure everything is correct before submitting your accounts.

Be Timely: It is important to submit your annual accounts on time to avoid any penalties or fines. ADGM requires that annual accounts are submitted within six months of the financial year-end. Make sure you have enough time to prepare your accounts and submit them before the deadline.

Keep Good Records: To ensure accuracy, it is important to keep good records throughout the year. This includes keeping track of all your financial transactions and maintaining up-to-date financial statements. Having good records will make it easier to prepare your annual accounts and ensure that they are accurate.

Seek Professional Help: If you are not confident in your ability to prepare your annual accounts, it may be worth seeking professional help. This could be from a qualified accountant or a business advisory firm. They can help ensure that your accounts are accurate and compliant with ADGM regulations.

Concisely put, dispatching your yearly ADGM financial statements may seem challenging, yet meticulousness ought not to be disregarded. Comprehend the mandates, uphold proper documentation, and resort to expert guidance as needed. Adhering to these strategies guarantees that your reports are furnished punctually and diligently and embody the fiscal status quo of your enterprise.

Let US take you a quick look into the fact of how MS can make better Annual Account submissions of your Enterprises in ADGM.

1. Helps in being compliant with the ADGM Registration Authority

2. Professional guidance on the reporting requirements based on the company’s nature.

3. Timely Reminders and Submissions

5. Prepare, analyze & submit financial statements and supporting documents as per the applicable regime.

6. Helps you stay updated with the regulatory changes

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MS is now at Abu Dhabi Global Market- ADGM !

After breathing in the energy of the booming business ecosystem in Abu Dhabi and the UAE day and night, we are all geared up to play a bigger part in the most crucial phase of Abu Dhabi’s growth story.

MS opens its new office this week at Abu Dhabi Global Market following our successful run of serving of our clients in the mainland. Our expansion into ADGM follows a growing demand for our services from various ADGM based entities. Now being part of one of the fastest growing and award-winning international financial center MS will serve a larger section offering our niche expertise to help achieve business and growth objectives.

MS will now be operating at ADGM square, Al Maryah Island to cater to our ADGM based client apart from continued operation in the mainland base office at the heart of the capital city.

MS ‘s philosophy of helping unleash the business potential in the region through our financial services while placing sustainability at the fore front closely resonates with ADGM’s commitment to establishing Abu Dhabi as a global leader in business development across industries.

This expansion of MS into ADGM is testimony to the result of determination, vision, and endurance. Our strong footing in the mainland, years of serving our diverse and growing clientele has instilled the confidence in us to best leverage this symbiotic relationship with ADGM.

Speaking about the new incorporation our founder and CEO Mr. Mohammed Shafeek said:

“MS is proud to receive ADGM license, which will allow us to conduct multiple services offerings for business in ADGM. The ADGM is a leading global hub that drives innovation and is at the forefront of business development. We believe our presence in ADGM will enable us to strengthen our position in the UAE and the region. We are also growing our team to meet the diverse needs of clients. We’ll be offering a broader range of services, including technology and compliance-related work in addition to what we currently offer: advisory accounting & taxes! I am confident that we can better serve our existing clientele as well as grow into something even bigger and exciting-  taking off like wildfire.”

While at ADGM, in addition to offering our various financial services, team MS focuses on:
– Enlightening the international community with the local financial compliance & free-zone specific Tax regulations.

-Adding immense value through financial literacy to budding firms and contribute refreshing sessions of financial & tax advisory, with a keen focus on young entrepreneurs.

– MS also strives to promote women entrepreneurs and add vital value to their growth in the region.

-Educating and assisting businesses to navigate the changing tax landscape in the country in light of the introduction of the new Corporate Tax regime.

Continuing our legacy in the mainland, MS is now ready for exponential growth at ADGM and as promised will leave a deep footprint in this exciting financial center.

Mr. Mohammed Rizwan will be the point of contact of our ADGM operations, his expertise and knowledge of the dynamic market, makes him an ideal confidante. Mr. Mohammed  would be happy to receive your queries at +97156 3997841, and alternatively you can also reach the team at info@ms-ca.com for further information or assistance.

About ADGM

ADGM is an international financial center and economic free-zone has played and continues to play a pivotal role in the exponential growth of Abu Dhabi. It is a dynamic space that represents the business attractiveness of the UAE, attracting major international players to set up at ADGM. It truly represents the potential this nation holds in terms of innovation and importantly also sustainability. It will set a global example and create history in various domain. We’re beyond thrilled to be part of this brilliant initiative.

 

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Say hello to our new identity, we are now MS!

Your trusted partner MSATC will now be under our parent brand MS. In the last 5 years, through the support of our clients we were able to truly tap into our potential. Even as we started off, we were certain that our journey would expand beyond MSATC, it was just our starting point. But the immense growth that MSATC experienced let us move on to our bigger plans in a short span of 5 years and we’re much obliged to everyone who has been a part of this journey so far.

The benchmark we have set for ourselves through our commitment to our clients and the quality of our services will be spearheading our transformation. Innovation has always been at the core of what we do, and with MS we will be combining the best of our brains with powerful technology to establish ourselves in new terrains.

We at MSATC earned the trust of our clients and other stake holders by committing to their success. We’ve always been customer centric and designed tailored solutions in the domains of advisory, accounting and bookkeeping, startup growth VAT, evaluation and many others. In our time serving our clients we recognized gaps in terms of affordable financial services that understands and caters the unique requirements of each business. In the same course of time, we’ve developed our expertise to fill this very gap. We’re all set to serve the growing demands of the dynamic business ecosystem in MENA.

Speaking about this new identity and rebranding our Chief growth officer Mr. Munawar Salih said “Today we are MS, leaping towards new horizons and its limitless possibilities. We’re still the same dedicated bunch who you’ve known and engaged with, MSians , who are now embracing a transformation that will facilitate delivering a lot more. With our rebranding we embark on this new journey to break ceilings and set new standards with your continued support. We look forward to the same love and support for MS as MSATC has received over the last 5 years. Challenges and opportunities are awaiting, and MS is ready.”

Get to know all about our new identity!

Since the beginning of the MS brand, the brand mark was constructed using 8 pillar that held up the V representing Victory at the centre. These pillars were teamwork, integrity, passion, humility and trust. These core elements were kept intact even during the rebranding of the identity. In the event of transforming MS into a parent company, building extended logo versions for the company also becomes relevant and is an integral part of brand identity.

By maintaining the consistency and integrity of the brand mark, a leaf shaped (Round diagonal corner) container is created around the brand mark to make it stand out in any placement. The shapes and cuts defined in the newly designed brand mark constructed brand mark was also followed while creating the word mark which makes their bonding stronger than before when placed together.

As MS becomes the parent company, defining extended versions  of logo while maintaining the core elements of the first logo  is also essential throughout the entire journey, hence we developed a well- balanced logo versions for representing the child companies and various sectors that come under MS.

Thank you for being part of our journey so far. We are delighted to be sharing this exciting news with you, and we have more excited news lined up in the coming days. Stay tuned for more!

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Key insights about ADGM’s Data Protection Regulations 2021!

In today’s Hyperconnected world, it has never been easier to share your personal data with other individuals & organizations. People often share their personal details and many other information to organizations. Don’t you think your personal data must be safeguarded and protected by the businesses you share it with?

Abu Dhabi Global Market (ADGM), the award-winning International Financial Centre located in Abu Dhabi, has announced that it has enacted the Data Protection Regulations 2021, which will replace the current Data Protection Regulations 2015. Furthermore, it has conducted an international benchmark of international standards and best practices and believes the European Union’s General Data Protection Regulation (which took effect in May 2018) is the leading international standard and best practice for robust Data Protection legislation.

What does Personal Data consist of?

  • Name
  • Address
  • Phone Numbers
  • Medical Records
  • Income
  • Cultural Profile
  • And many more….

Purpose of this initiative?

The new Regulations are adapted to the needs of ADGM and are intended to be proportionate and business friendly, without undermining the key ambition of achieving a high standard of protection for personal data. New regulations aimed at increasing the protection of personal data processed in ADGM.

What are the best international practices ADGM has placed?

  • Promoting Data Protection
  • Maintaining the register of data controllers
  • Enforcing the obligations upon Data controllers
  • Upholding the rights of individuals

ADGM recognizes that adoption of the new Regulations will result in significant changes and additional responsibilities for Data Controllers and Data Processors. Accordingly, a transition period is proposed of 12 months for current establishments, and 6 months for new establishments, from 14 February 2021.

Through applying the new regulations, entities can be assured of the highest standards of data protection, in line with international best practice. In the end, its all about protecting personal data which builds trust and enhances relationships.

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