IFZA Approved Auditors in Dubai
IFZA is one of Dubai’s fast-growing free zones, preferred by consultants, traders, e-commerce businesses, service providers, holding companies, and international entrepreneurs. With the new IFZA financial statement requirement effective from 30 September 2025, companies renewing their IFZA licence must submit financial statements as part of the renewal process.
Unlike some free zones that maintain a strict “approved auditor list,” IFZA allows audited financial statements to be prepared by any registered UAE auditor. However, businesses must still ensure that the financial statements are properly prepared, signed, supported by accounting records, and suitable for IFZA renewal submission.
How our IFZA audit team can help:
- Preparation and review of IFZA financial statements
- Audit of financial statements where full audited accounts are required
- Assessment of whether your company qualifies for simplified financial statements
- Review of accounting records, bank reconciliations, invoices, and ledgers
- Support with IFZA renewal-related financial documentation
- Guidance on IFRS, IFRS for SMEs, or cash-basis reporting based on turnover
IFZA Financial Statement Requirements for Licence Renewal
From 30 September 2025, IFZA companies are required to submit financial statements during the trade licence renewal process. This requirement applies to all IFZA licensees, including FZCOs and branches.
The financial statements should cover the most recently completed financial year as of the licence renewal date. Companies that renewed before 30 September 2025 were not required to submit financial statements for that renewal cycle, but submission will be required for the next renewal.
IFZA also provides a simplified financial statement route for smaller companies. A company may submit simplified financial statements only 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 financial year. If either condition is not met, full audited financial statements are required.
Auditing and Financial Statement Process in IFZA
Companies registered in IFZA should not wait until the licence renewal date to prepare their accounts. Since financial statements are now part of the renewal process, proper bookkeeping, reconciliations, and document readiness are important throughout the year.
1. Confirm the Financial Year
The company should first confirm the financial year stated in its Articles of Association. IFZA requires financial statements to cover the most recently completed financial year as of the renewal date.
2. Review the Company’s Reporting Category
The next step is to check whether the company qualifies for simplified financial statements or needs full audited financial statements. This depends mainly on annual turnover and the number of employees during the completed financial year.
3. Prepare Accounting Records
The company must organise its accounting records, including ledgers, invoices, receipts, contracts, bank statements, payroll records, and tax documents. Proper records reduce audit delays and help ensure the financial statements are reliable.
4. Prepare Financial Statements
The financial statements should be prepared using the correct basis. Companies with annual turnover of AED 3 million or less may use cash-basis reporting. Companies with turnover above AED 3 million and below AED 50 million generally use IFRS for SMEs, while companies above AED 50 million use full IFRS.
5. Complete Audit Where Required
If the company does not qualify for simplified financial statements, audited financial statements must be prepared. IFZA permits any registered UAE auditor to prepare audited financial statements for this purpose.
6. Submit During Licence Renewal
The financial statements must be submitted through the electronic form shared during the IFZA licence renewal process. The financial statements must also be electronically signed by the authorised signatory, such as the manager, director, or shareholder.
Documents Required for IFZA Audit and Financial Statements
To prepare IFZA financial statements or audited accounts, companies should keep the following documents ready:
- 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 for the completed financial year
- Bank reconciliation statements
- Sales invoices and customer records
- Purchase invoices and expense records
- Contracts, agreements, and supporting documents
- Payroll records and employee details
- VAT returns and TRN certificate, if applicable
- Corporate Tax registration details, if applicable
- Previous financial statements or audit report, if available
Stay Ready for IFZA Licence Renewal
The new IFZA financial statement requirement makes accounting discipline more important for every IFZA company. Businesses should keep records updated during the year instead of preparing accounts only when renewal is due.
Companies with simple operations may qualify for the simplified financial statement route, but the IFZA template must be used where applicable. Companies that exceed the turnover or employee threshold must prepare audited financial statements. If an audited report has already been prepared for the Federal Tax Authority for the same financial year, it may also be submitted for IFZA renewal where accepted.
Farahat & Co. helps IFZA companies review their records, identify the correct reporting category, prepare financial statements, complete audits where required, and stay ready for renewal without last-minute pressure.
Faqs
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.
How can Farahat & Co. help with IFZA audit 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.