Service:
Tax Structure & Compliance
Client:
Corporate Entity (Non-UAE)
Duration:
6 months
Date:
12.06.2025
Navigating Complex UAE Compliance Requirements
The client, a newly established UAE entity, faced uncertainty around ESR classification, VAT registration thresholds, and ongoing filing duties. Their operational model involved cross-border revenue streams, making compliance risks significant. Without proper structuring, the business faced potential penalties, misclassification, and gaps in substance documentation.
They required a clear regulatory roadmap that aligned business activity with ESR, VAT, and corporate governance — ensuring full compliance from day one.
1. ESR Classification & Assessment
Determined the entity’s correct ESR category based on operational activities.
Conducted a substance gap analysis to identify required governance, staffing, and reporting.
2. VAT Registration & Tax Structuring
Registered the entity for UAE VAT in line with revenue forecasts.
Implemented a VAT-compliant invoicing and record-keeping system.
Advised on zero-rated, standard-rated, and exempt supplies relevant to the client.
3. Compliance Framework Setup
Established ESR reporting processes, annual filing requirements, and documentation standards.
Implemented internal controls to maintain compliance with FTA audits and information requests.
4. Corporate Governance Alignment
Structured management roles and decision-making processes to meet “directed and managed” ESR criteria.
Ensured financial records, minutes, and operational evidence aligned with the client’s true activity.
A Fully Compliant and Audit-Ready Operational Structure
Achieved full ESR compliance with documented economic substance.
Completed VAT registration and implemented a sustainable tax-compliant reporting framework.
Reduced regulatory exposure and future penalty risk.
Created a transparent governance model aligned with UAE regulatory expectations.
“Before working with Adelberg & Partner, we had no clear understanding of how our UAE operations fit within ESR or VAT rules. Their team assessed our structure, guided us through every requirement, and built a compliance framework that removed all uncertainty. Their precision and professionalism gave us total confidence — and ensured our setup was fully aligned with UAE regulations.”
Laura Mendes
Operations Director, Regional Trading Company
