DIFC Approved Auditors

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Services We Offer as DIFC Approved Auditors in UAE

As a DIFC registered auditor, we deliver audit and compliance services built around the DIFC Companies Law and the requirements of the DIFC Registrar of Companies, so your company stays compliant from year end to filing.

DIFC Audit Requirements and Regulations

Legal basis

DIFC’s audit and accounting framework is set out in the DIFC Companies Law (DIFC Law No. 5 of 2018, as amended), which took effect on 12 November 2018 and replaced the earlier Companies Law of 2009. Every DIFC company must prepare annual accounts, in practice under IFRS. Companies that do not qualify for the small private company exemption must have those accounts audited by a DIFC-registered auditor, circulate them to shareholders and file them with the DIFC Registrar of Companies. Financial services firms regulated by the Dubai Financial Services Authority are additionally subject to DFSA rules and must appoint a DFSA-registered auditor.

Who must comply, and who is exempt

Audit and filing requirements commonly apply to DIFC private companies, public companies, Authorised Firms, Designated Non-Financial Businesses and Professions, Authorised Market Institutions, and DIFC-domiciled funds. The DIFC Companies Law includes a carve-out for small private companies: a private company with annual turnover of USD 5,000,000 or less and no more than 20 shareholders, for the whole financial year (and the previous year if it has traded for more than one year), does not need to have its accounts audited. These companies must still prepare unaudited annual accounts, and shareholders holding at least 10% of the share capital can require an audit by written notice. The exemption does not apply to DFSA-regulated firms, and a Qualifying Free Zone Person claiming the 0% corporate tax rate still needs audited financial statements.

Penalties for non-compliance

Late or missing filings can lead to administrative fines from the DIFC Registrar of Companies, with the amount depending on the type of breach. A pending annual accounts filing can also block commercial licence renewal, and repeated or serious non-compliance can lead to licence suspension or revocation.

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Audit Process, Deadline and Documents Required

Filing deadline and submission process

Audited accounts must be prepared and circulated to shareholders within six months of the end of the financial year, then filed with the DIFC Registrar of Companies within 30 days of circulation. The DIFC client portal shows the annual accounts filing as a pending action, and an overdue filing can hold up licence renewal. Starting the audit soon after year end leaves time for the review, any adjustments and shareholder approval.

Step-by-step audit process

Confirm the applicable regime: determine whether the entity is a DFSA-regulated financial services firm, which requires a DFSA-registered auditor, or a standard commercial company, which requires a DIFC-registered auditor, and confirm whether the small private company exemption applies.
Maintain financial records throughout the year: ledgers, invoices, bank statements, payroll records and supporting contracts.
Prepare IFRS-compliant financial statements: statement of financial position, profit and loss, cash flow statement, changes in equity, and notes.
Appoint the correct registered auditor and complete the audit in line with International Standards on Auditing.
Have the directors approve and sign the audited accounts, then circulate them with the auditor’s report to shareholders. Public companies also lay them before a general meeting.
File the audited financial statements with the DIFC Registrar of Companies within 30 days of circulating them to shareholders.

Documents required

Valid trade licence, Memorandum and Articles of Association, shareholder register, bank statements for the financial year, trial balance and general ledger, sales, purchase, expense and payroll ledgers, fixed asset register, management accounts, VAT and corporate tax records where applicable, and supporting invoices and contracts.

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Why Choose Farahat & Co. as Your DIFC Auditor

Farahat & Co. has worked in the DIFC since 2008, when the DIFC Authority announced the firm’s presence in the Centre. Since 1985, our audit team has worked across commercial companies, holding structures and regulated entities, and understands the distinction between DIFC-registered and DFSA-registered audit requirements, so clients are matched with the correct registration type from the outset rather than discovering a mismatch during filing.

Beyond DIFC, Farahat & Co. holds approvals across more than 20 UAE free zones, including DMCC, JAFZA and DAFZA, giving groups with entities in multiple jurisdictions a single audit partner instead of coordinating separate firms. Our team of CPAs, CAs and ACCAs works directly with clients through planning, fieldwork and reporting, and connects the audit to related VAT, corporate tax and accounting support where needed, so the annual DIFC filing fits into a wider compliance picture rather than standing alone.

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About DIFC: Free Zone Profile

The Dubai International Financial Centre was established in 2004 as a financial free zone with its own civil and commercial laws, distinct from onshore UAE law, and its own judicial system through the DIFC Courts. It is regulated for financial services matters by the Dubai Financial Services Authority, while company registration and filings are handled by the DIFC Registrar of Companies. DIFC had more than 8,800 active registered companies at the end of 2025, spanning banking, asset management, insurance, fintech, professional services and holding company structures.

Because DIFC hosts a significant number of regulated financial services entities alongside standard commercial companies, its audit framework is more layered than most other UAE free zones: commercial companies fall under the DIFC Companies Law, while DFSA-regulated firms carry additional prudential and regulatory reporting obligations on top of the standard annual audit. This dual structure is one of the main reasons DIFC-registered companies benefit from an auditor experienced in both regimes.

Frequently Asked Questions

Is an audit mandatory for all DIFC companies?

Not always. Most DIFC companies must have their accounts audited annually, but the DIFC Companies Law exempts small private companies with annual turnover of USD 5,000,000 or less and no more than 20 shareholders, provided they still prepare annual accounts. DFSA-regulated firms must be audited regardless of size.

What is the deadline for submitting audited financial statements in DIFC?

Audited accounts must be circulated to shareholders within six months of the financial year end and filed with the DIFC Registrar of Companies within 30 days of circulation. An overdue filing can block licence renewal.

Can any audit firm conduct a DIFC audit?

No. The audit must be conducted by an auditor registered with the DIFC for commercial companies, or by a DFSA-registered auditor if the entity is a regulated financial services firm. The two registration types are not interchangeable.

What is the difference between a DIFC-registered auditor and a DFSA-registered auditor?

A DIFC-registered auditor audits standard commercial companies under the DIFC Companies Law. A DFSA-registered auditor audits Authorised Firms and other entities regulated by the Dubai Financial Services Authority, which carry additional prudential reporting requirements.

Who typically needs DIFC audit services?

DIFC audit services are commonly needed by DIFC private and public companies, Authorised Firms, Designated Non-Financial Businesses and Professions, Authorised Market Institutions, and DIFC-domiciled funds.

Are small companies exempt from audit in DIFC?

Yes, under certain conditions. A private company with annual turnover of USD 5,000,000 or less and no more than 20 shareholders for the whole financial year (and the previous year, if applicable) does not need an audit, though it must still prepare annual accounts. Shareholders holding at least 10% of the share capital can still require an audit by written notice.

What happens if audited financial statements are submitted late in DIFC?

Late filing can lead to administrative fines from the DIFC Registrar of Companies and can block licence renewal. Repeated or serious non-compliance can lead to licence suspension.

What documents are usually required for a DIFC audit?

Commonly required documents include the trade licence, Memorandum and Articles of Association, shareholder register, bank statements, trial balance and general ledger, payroll and purchase ledgers, fixed asset register, and relevant VAT or corporate tax records.

How long does a DIFC audit take?

It depends on the size of the business, the quality of the accounting records, and how quickly supporting documents are provided. Most DIFC audits are completed within a few weeks when records are well organised.

Do dormant or zero-turnover DIFC companies still need an audit?

Often not. A dormant private company with no more than 20 shareholders usually falls within the small private company exemption, so an audit is not required, although annual accounts must still be prepared. DFSA-regulated entities, companies whose shareholders request an audit, and Qualifying Free Zone Persons claiming the 0% corporate tax rate still need audited accounts.

Do you provide services beyond audit for DIFC companies?

Yes. Farahat & Co. also provides accounting, VAT, corporate tax and related advisory services for DIFC-registered companies and businesses across the UAE.

DIFC Approved Auditors