UAE has implemented Economic Substance Regulations (“ESR”) for all Free zone and onshore companies in UAE to ensure that UAE entities that undertake certain activities are not used to extract profits which are not undertaken through the economic activity undertaken in the UAE. ESR Relevant Activities Guide provides guideline that businesses carried out in UAE are expected to use a “substance over form” approach to determine whether they undertake a Relevant Activity leading to fall within the scope of the Economic Substance Regulations Also,for every financial period, any Licensee that carries out one or more of the Relevant Activities and derives income from these“Relevant Activities” in the UAE will be required to satisfy an “economic substance test” and submit an economic substance report with the appropriate regulatory authority within 12 months from the end of the relevant financial period. Since this was implemented on Jan 1^st 2019, it’s not compulsory for the Company or individual to consider the income earned from the relevant activities from Jan 1^st, 2019. They are flexible to consider and fill the details within 12 months of their financial year.For example if a Company’s financial year  starts from April 2019, so they must fill the form and perform the test within 12  months that is  by 31^st march 2020 . This test is to identify the licensee and the relevant activities assessing the core income generating activities.It also analysis the adequate number of employees, assets and expenses carried out by the firm in UAE The list of the Relevant Activities:

• Banking Business
• Insurance