Corporate, funds and trust services provider Estera has launched an initiative aimed at the new economic substance requirements for businesses.

The company has introduced an interactive portal and a client guide on the subject.

The portal and guide will be used by Estera clients to help establish how their entities are impacted by the new economic substance regulations.

Economic substance legislation came into effect in the Crown Dependencies and British Overseas Territories on January 1, 2019 and requires relevant entities with tax residence or, as relevant, incorporation and income in impacted jurisdictions to evidence adequate local resources, facilities and control over certain income generating activities.

Estera claims it is well placed to help clients understand and respond to the new legislation.

The firm, which has an office in Athol Street, Douglas, has experience in gathering and reporting company data. Furthermore, Estera says it has a significant presence in jurisdictions affected by economic substance legislation.

Gary O’Connor, managing director of Estera in the Isle of Man said: ’We are able to tailor our solutions to meet our clients’ requirements - whether that is as simple as providing additional directors and / or providing bespoke solutions to the entity, so that it is compliant with the new legislation.

’Our economic substance solutions and client portal will make life easier for our clients.’

Eric Anliker, Estera group counsel said: ’Our new portal and guide will help clients understand if their entity is in scope of the new law and if it meets the substance requirements.

’In case of substance gaps, we are offering solutions to test and further enhance substance compliance so that our clients meet the requirements.

’At the relevant time, we will also help prepare and submit economic substance reporting.’

The portal contains a set of questions, which will allow clients to understand the impact of the new legislation, based on their responses.

Once each entity completes the survey, Estera will deliver a preliminary understanding of the applicable substance obligations (if any are relevant), provide relevant template resolutions and outline the next steps that the entity will need to take including opportunities to add substance where needed.

A spokesman said the importance of compliance with the new substance regulations cannot be understated given the potential liability for extensive penalties.

Estera’s experts will help clients navigate the complexities of the new legislation and meet the requirements.

lLast month Business News reported that staff at Estera were informed the company was being bought by another business.

Around 80 people work at the Athol Street, Douglas, office of the firm which is a described as a provider of funds, corporate and trust services.

Inflexion Private Equity is to acquire Estera from Bridgepoint, which is an international private equity group.

Following completion of the investment, which is subject to regulatory approval, Estera will be merged with Inflexion’s existing portfolio company Ocorian, forming what is being billed as a ’global corporate service and fund administration leader of significant scale.’