Economic Substance Regulations (ESR)

Economic Substance Regulations (ESR)

Bahrain's Economic Substance Regulations (ESR) require entities carrying out "Relevant Activities" to demonstrate adequate economic presence in Bahrain. 

Our team of specialists can help you determine the impact of ESR on your business, including:
  • Scope Assessment: Determining if your business conducts a "Relevant Activity."
  • Exemption Analysis: Assessing eligibility for ESR exemptions.
  • Risk Identification: Identifying whether your business is classified as high-risk for ESR purposes.
  • ESR Test Compliance: Evaluating if your business meets the required ESR tests, including Core Income Generating Activities (CIGA), adequacy of employees, and physical presence.

Where gaps are identified, we provide detailed reviews and recommendations to mitigate risks. We assist with ESR compliances by providing support in preparing and submitting annual reports, including assessment of ESR test compliances and review of supporting documentation.