New regulations have been issued in Cabinet of Ministers Resolution No. 31 of 2019, dated 30 April 2019. They introduced a legal requirement for all UAE entities to locally maintain ‘economic substance’ in line with the level and type of activity they undertake.
Any UAE entity that undertakes “Relevant Activities” which consist of any of the following businesses licensed in the UAE (mainland and/or free trade zones):
— Banking
— Insurance
— Investment fund management
— Lease finance
— Headquarters
— Shipping
— Holding company
— Intellectual property
— Distribution and service centers