According to the regulations, the UAE-based free zone, and financial free zone companies in that carry out the relevant functions mentioned in the guidance are bound to present satisfactory economic presence by meeting the UAE economic substance test. The companies are required to notify and submit an annual UAE economic substance report to the regulatory authorities if they are meeting the criteria to avoid hefty penalties. A caveat: The regulation is new, and we have seen many companies failing to comply with the standards and providing inaccurate or incomplete information, leading to heavy penalties. Luckily, you can delegate the complicated task to an experienced and best UAE-based Economic Substance Advisory firm. The expert assistance from Economic Substance Regulations Reporting service professionals not only keeps you from committing such grave mistakes but also ensures Economic Substance compliance.