Non-compliance with the Economic Substance Regulations can result in penalties, including fines and potential regulatory sanctions. Therefore, businesses operating in the UAE need to understand and adhere to the requirements outlined in the ESR to avoid any legal or financial repercussions.

UBO stands for "Ultimate Beneficial Owner." In business and legal contexts, the Ultimate Beneficial Owner refers to the individual(s) who ultimately own or control a company or entity. Identifying the UBO is crucial for transparency and compliance purposes, particularly in sectors where there are regulations aimed at preventing money laundering, terrorist financing, and other illicit activities. UBO is a set of regulations put in place to increase financial transparency when it comes to business ownership – with the goal of more effectively combating money laundering and terrorist financing. The UBO is the natural person who ultimately owns or controls a legal entity, either directly or indirectly, and who benefits from its operations or assets. In cases where ownership or control is held through intermediary entities or complex ownership structures, it's essential to trace the ownership chain to identify the UBO.

ESR & UBO consultancy refers to the provision of specialized advisory services related to Economic Substance Regulations (ESR) and Ultimate Beneficial Owner (UBO) compliance. ESR consultancy involves assisting businesses in understanding and adhering to regulations requiring entities to demonstrate economic substance in jurisdictions where they operate. UBO consultancy focuses on identifying and disclosing the ultimate individuals who own or control a company, ensuring transparency and compliance with regulatory requirements, particularly in relation to anti-money laundering (AML) and know your customer (KYC) regulations. These consultancy services provide businesses with expert guidance, strategic advice, and support to navigate complex regulatory landscapes, mitigate risks, and maintain compliance effectively.