ESR
ESR:- If a DAFZA company has a virtual license in UAE. It does not have a physical presence in the UAE and there is no employee during the F.Y. In that case in the ESR reporting what should be declared in the following questions:-
1. Office Size
2. Direct and Managed
3. And self-declaration
And if we put the negative answer, what will be the impact in the future?
Replies
Presuming the company is undertaking a Relevant Activity and reporting is applicable for them, office size would be Zero and Directed and Managed Test may not be satisified if no meetings are physically held in UAE. Impact is that the Authority would consider that Economic Substance is not being met with and impose penalties. The company can consider making appropriate changes to make sure compliance is met with in the following year.
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