Proud of UAE  [email protected]       [email protected]        +97142500251 97142500251+       +971507869887 971507869887+      WhatsApp

We are Approved Auditors by IFZA Free Zone.

Financial Statement and Audit Support for IFZA Companies

Farahat & Co. supports companies registered with the International Free Zone Authority (IFZA) with financial statement preparation and audit services for licence renewal.

Originally established in Fujairah in 2018 before relocating to Dubai Silicon Oasis, IFZA is one of Dubai’s fastest-growing free zones, popular with consultants, traders, e-commerce businesses and holding companies.

Since 30 September 2025, every IFZA licensee must submit financial statements as part of licence renewal, with full audited financial statements required unless the company qualifies for IFZA’s simplified reporting route.

Book an IFZA Audit Consultation

Make An Enquiry

Services We Offer as IFZA Approved Auditors in UAE

As IFZA approved auditors in the UAE, we offer a comprehensive suite of financial, audit, and compliance services for businesses registered in the International Free Zone Authority. We are your trusted partner in maintaining full regulatory compliance.

IFZA Financial Statement Requirements and Regulations

Legal basis

IFZA introduced its financial statement requirement for licence renewal effective 30 September 2025. Unlike free zones that maintain a fixed list of approved auditors, IFZA permits any auditor registered and licensed in the UAE to prepare or audit the financial statements submitted for renewal. IFZA operates under dual regulatory backing, drawing on the Hamriyah Free Zone Authority framework while sitting within the jurisdiction of the Dubai Silicon Oasis Authority, though its licensing and renewal procedures are administered independently through its own portal.

Who must comply

The requirement applies to all IFZA licensees, including Free Zone Companies (FZCOs) and branches. Companies that renewed their licence before 30 September 2025 were not required to submit financial statements for that renewal cycle, but the requirement applies from their next renewal onward. Whether a company needs full audited financial statements or can use IFZA’s simplified route depends on two thresholds — annual turnover and employee headcount during the completed financial year — not on the type of licence held.

Consequences of non-compliance

Since financial statements are now a required part of the licence renewal process, failure to submit them in the correct format for the company’s reporting category can delay or prevent licence renewal. Companies that assume the requirement does not apply to them, particularly smaller businesses, risk discovering the obligation only at renewal time, when there is less room to prepare records properly.

Speak to an IFZA Approved Auditor

Audit Process, Deadline and Documents Required

Filing requirement and submission process

Financial statements must cover the most recently completed financial year and are submitted at the time of licence renewal, through an electronic form provided during the renewal process, signed by an authorised signatory such as the manager, director or shareholder. Whether a company needs full audited financial statements or can use the simplified route depends on two thresholds during the completed financial year: annual turnover of AED 3 million or less, and nine employees or fewer at any point in the year. If either threshold is exceeded, full audited financial statements are required. Companies should also apply the correct accounting basis: cash-basis reporting for turnover of AED 3 million or less, IFRS for SMEs for turnover between AED 3 million and AED 50 million, and full IFRS above AED 50 million.

Step-by-step process

  1. Confirm the financial year set out in the company’s Articles of Association.
  2. Determine the reporting category — simplified financial statements or full audited financial statements — based on turnover and employee count.
  3. Organise accounting records, including ledgers, invoices, receipts, contracts, bank statements and payroll records.
  4. Prepare financial statements using the correct accounting basis for the company’s turnover level.
  5. Complete the audit, where full audited financial statements are required, using any UAE-registered auditor.
  6. Submit through the electronic renewal form, signed by the authorised signatory. An audited report already prepared for the Federal Tax Authority for the same financial year may also be accepted for IFZA renewal.

Documents required

Valid IFZA trade licence, certificate of incorporation, Articles of Association and company formation documents, shareholder, manager and authorised signatory details, trial balance and general ledger, profit and loss statement and balance sheet, bank statements and reconciliations for the completed financial year, sales and purchase invoices, contracts and supporting documents, payroll records, VAT returns and TRN certificate where applicable, corporate tax registration details where applicable, and previous financial statements or audit reports if available.

Request an IFZA Audit Quote

Why Choose Farahat & Co. for IFZA Financial Statements and Audits

Farahat & Co. supports IFZA companies through the financial statement and audit requirements introduced for licence renewal. Because IFZA’s reporting category depends on turnover and employee thresholds that can shift year to year, our team reviews each client’s position before assuming which route applies, rather than defaulting to a full audit or a simplified filing without checking.

Beyond IFZA, Farahat & Co. holds approvals across more than 20 UAE free zones, including DMCC, JAFZA and DIFC, giving businesses that expand or restructure across multiple free zones a consistent audit partner. Since an existing FTA audit report can sometimes be used for IFZA renewal, we also help clients avoid preparing duplicate financial statements where one properly prepared report can satisfy both requirements.

Schedule Your IFZA Audit

About IFZA: Free Zone Profile

The International Free Zone Authority was established in 2018 in Fujairah before relocating to Dubai Silicon Oasis, where it now operates from the DSO Digital Park. IFZA has grown rapidly into one of Dubai’s most popular free zones for startups, freelancers, consultants and small to medium businesses, offering more than 2,000 permitted business activities across professional, commercial and industrial licence categories.

IFZA operates on a Professional Partner model, working through a network of authorised agents rather than processing applications directly, and is known for competitive multi-year licence pricing and a comparatively fast setup process. This accessibility has made IFZA one of the highest-volume free zones in Dubai by number of registered companies, which is part of why its move to require financial statements at renewal, effective 30 September 2025, represents a significant compliance shift for a large number of businesses.

Frequently Asked Questions

Is audit mandatory for IFZA companies?

Audit is not mandatory for every IFZA company in the same way. From 30 September 2025, all IFZA licensees must submit financial statements during licence renewal. Full audited financial statements are required where the company does not qualify for simplified financial statements.

Who must submit financial statements to IFZA?

All IFZA licensees, including FZCOs and branches, must submit financial statements as part of the licence renewal process from the applicable date.

When did the IFZA financial statement requirement start?

The requirement applies from 30 September 2025. Companies renewing before this date were not required to submit financial statements for that cycle, but they must submit them for the next renewal.

Which IFZA companies can submit simplified financial statements?

An IFZA company may submit simplified financial statements if its annual turnover for the completed financial year is AED 3 million or less and it had nine employees or fewer at any point during that year.

When are audited financial statements required in IFZA?

Audited financial statements are required if the company does not meet the simplified financial statement criteria. This means if turnover exceeds AED 3 million or the company had more than nine employees, full audited financial statements are required.

Can any auditor prepare IFZA audited financial statements?

Yes. IFZA permits any registered UAE auditor to prepare audited financial statements for IFZA renewal purposes.

What accounting standard applies to IFZA financial statements?

For turnover of AED 3 million or less, cash-basis accounting may apply. For turnover above AED 3 million and below AED 50 million, IFRS for SMEs generally applies. For turnover above AED 50 million, full IFRS applies.

How are IFZA financial statements submitted?

The financial statements are submitted through the electronic form shared during the IFZA licence renewal process. They must be electronically signed by the authorised signatory.

Can an existing FTA audit report be used for IFZA renewal?

Yes. If an audited report has already been prepared for the Federal Tax Authority for the most recently completed financial year, it may be submitted for IFZA licence renewal.

What happens if an IFZA company assumes it is exempt and turns out not to be?

Discovering the requirement only at renewal time leaves little room to prepare records properly, which can delay licence renewal. Companies should confirm their reporting category well ahead of their renewal date rather than assuming exemption.

How can Farahat & Co. help with IFZA financial statement requirements?

Farahat & Co. can review your IFZA company records, confirm whether simplified or audited financial statements are required, prepare financial statements, complete audit procedures where needed, and support your renewal documentation.
×

Hold On!

Business decisions are easier with the right guidance.

For audit, accounting, tax, or VAT, our team is here to help.