ADGM Approved Auditors in Abu Dhabi, UAE
Abu Dhabi Global Market (ADGM) is an international financial centre with its own commercial, company, accounting, and audit framework. Companies operating in ADGM must take annual accounts and audit obligations seriously because filing requirements are linked to the company’s size, activity, structure, exemption status, and regulatory classification.
Unlike ordinary free zone audits, ADGM audit requirements are more technical. Some companies must file audited annual accounts, while eligible small companies may file simplified unaudited accounts. Financial institutions, public interest entities, and companies that do not qualify for audit exemption require a higher level of audit compliance.
How our ADGM audit team can help:
- Audit of annual accounts where audited financial statements are required
- Support with ADGM annual accounts and filing readiness
- Review of small company audit exemption eligibility
- QFZP audit readiness and Corporate Tax-related financial statement support
- Review of IFRS financial statements, director reports, and board approval records
- Guidance for holding companies, investment entities, SPVs, and regulated structures
ADGM Annual Accounts and Audit Requirements
ADGM companies and LLPs are generally required to file annual accounts with the ADGM Registration Authority. These accounts show the financial position and performance of the entity for the relevant financial year.
Where audited accounts are required, the filing usually includes audited annual accounts, the auditor’s report, the director’s report, and the board resolution approving the accounts. The audit must be carried out by an ADGM Registered or Recognised Auditor, depending on the applicable ADGM audit framework and entity requirement.
ADGM annual accounts are generally filed through the ADGM online registry solution. For most private companies and LLPs, subsequent annual accounts must be filed within nine months of the accounting reference date. Companies should not wait until the deadline because late or defective filings may lead to revision requests, delays, or penalties.
ADGM Audit Exemption and Who Must File Audited Accounts
ADGM audit requirements are not the same for every company. Eligible small companies may be able to file simplified unaudited accounts if they meet the small company conditions. Public interest entities and firms providing financial services are not eligible for the simplified small company filing route.
A company that wants to benefit from Qualifying Free Zone Person treatment for UAE Corporate Tax should also review its audit position carefully. For Corporate Tax purposes, QFZP status may require the company to maintain audited financial statements, even where the company is small.
Financial institutions and public interest entities require additional care because ADGM auditors may need specific permits to audit certain regulated or higher-risk entities. For this reason, ADGM companies should confirm their audit requirement before preparing annual accounts or relying on any exemption.
What ADGM Auditors Review Before Filing
ADGM audits should be based on the real nature of the entity. A holding company, SPV, investment vehicle, operating company, financial institution, and professional service firm will not have the same audit risk.
For holding companies and SPVs, the audit usually focuses on investments, ownership records, intercompany balances, shareholder funding, board approvals, and related-party transactions. For operating companies, the focus is often revenue, expenses, contracts, payroll, receivables, payables, and bank reconciliations.
For ADGM entities seeking QFZP treatment, the audit should also support the company’s financial statement position, tax reporting readiness, qualifying income analysis, transfer pricing records, and economic substance of the business. Clean accounting records make the annual accounts filing smoother and reduce the risk of defective or incomplete submissions.
Corporate Tax and QFZP Audit Readiness for ADGM Companies
ADGM companies should also review audit requirements from a UAE Corporate Tax perspective. Many ADGM entities are used as holding companies, SPVs, investment vehicles, professional service companies, and regional business structures. These entities may need clean financial statements to support Corporate Tax filing, transfer pricing positions, and free zone tax treatment.
If an ADGM company wants to benefit from Qualifying Free Zone Person status, it should carefully review whether audited financial statements are required for its Corporate Tax position. This is separate from the normal ADGM annual accounts filing analysis and should not be ignored simply because the company may qualify for a small company filing exemption under ADGM rules.
Farahat & Co. helps ADGM companies review annual accounts obligations, audit exemption eligibility, Corporate Tax records, QFZP readiness, related-party balances, and supporting schedules before filing or audit deadlines.
Faqs
Is audit mandatory for ADGM companies?
Not for every company in the same way. ADGM companies and LLPs generally need to file annual accounts, but whether the accounts must be audited depends on the entity type, size, activity, exemption status, and regulatory classification.
Who can audit an ADGM company?
Where an audit is required, it should be carried out by an ADGM Registered or Recognised Auditor in line with the applicable ADGM audit framework.
When should ADGM annual accounts be filed?
For most existing private companies and LLPs, annual accounts are generally required to be filed within nine months of the accounting reference date. First-year filing deadlines may vary depending on the length of the first financial year.
Can a small ADGM company file unaudited accounts?
Yes, if it qualifies under the small companies regime. Generally, a company may qualify if its turnover is not more than USD 13.5 million and it has not more than 35 employees, subject to other eligibility conditions.
Are ADGM financial services firms eligible for small company audit exemption?
No. Firms providing financial services and public interest entities are not eligible to use the simplified small company accounts regime.
Do ADGM QFZP companies need audited financial statements?
An ADGM company that wants to claim Qualifying Free Zone Person treatment should review its audit position carefully because audited financial statements may be required for UAE Corporate Tax purposes.
What is usually filed for ADGM audited annual accounts?
Where audited accounts are required, the filing usually includes audited annual accounts, the auditor’s report, the director’s report, and the board resolution approving the accounts.
Where are ADGM annual accounts submitted?
ADGM annual accounts are submitted through the ADGM online registry solution under the relevant annual accounts filing service.
Can ADGM return defective accounts?
Yes. If the wrong type of accounts is filed or the accounts do not meet the formal requirements, ADGM may return them for revision.
How can Farahat & Co. help with ADGM audit requirements?
Farahat & Co. can review your ADGM entity type, check audit exemption eligibility, prepare audit-ready accounts, support audited financial statements, and guide you on annual accounts filing readiness.