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We are Approved Auditors by Abu Dhabi Global Market (ADGM).

 

Annual Accounts and Audit Support for ADGM Companies

Farahat & Co. provides audit and annual accounts support for companies operating in the Abu Dhabi Global Market (ADGM).

Established under Abu Dhabi Law No. 4 of 2013 and operational since October 2015, ADGM is an international financial centre with its own common law legal system, spanning Al Maryah Island and Al Reem Island.

ADGM companies and LLPs must file annual accounts with the ADGM Registration Authority, though whether those accounts must be audited depends on the entity’s size, activity, structure and regulatory classification.

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Services We Offer as ADGM Approved Auditors in UAE

As ADGM approved auditors in the UAE, we specialise in financial and compliance services for businesses operating within the Abu Dhabi Global Market. Our team is highly experienced in ADGM’s internationally aligned regulatory framework.

ADGM Annual Accounts and Audit Requirements

Legal basis and filing deadline

ADGM’s company law framework is set out in the Companies Regulations 2020, issued under Abu Dhabi Law No. 4 of 2013 and amended several times since, most recently by Amendment No. 3 of 2024. ADGM companies and LLPs are generally required to file annual accounts with the ADGM Registration Authority, showing the entity’s financial position and performance for the relevant financial year. For most existing private companies and LLPs, annual accounts must be filed within nine months of the accounting reference date, through the ADGM online registry solution.

Who must file audited accounts

Where audited accounts are required, the filing usually includes the 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. Financial institutions, public interest entities, and companies that do not qualify for audit exemption require full audited accounts.

Small company exemption

Eligible small companies may file simplified unaudited accounts instead of full audited accounts. A company generally qualifies for this route if its turnover is not more than USD 13.5 million and it has no more than 35 employees, subject to other eligibility conditions. Firms providing financial services and public interest entities are not eligible to use this simplified regime, regardless of their size.

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Audit Focus, Documents and Corporate Tax Readiness

What ADGM auditors review by entity type

ADGM audits should be based on the actual nature of the entity, since a holding company, SPV, investment vehicle, operating company, financial institution and professional service firm all carry different audit risks.

  • Holding companies and SPVs: investments, ownership records, intercompany balances, shareholder funding, board approvals and related-party transactions.
  • Operating companies: revenue, expenses, contracts, payroll, receivables, payables and bank reconciliations.
  • Companies seeking QFZP treatment: financial statement position, tax reporting readiness, qualifying income analysis, transfer pricing records and evidence of economic substance.

Corporate Tax and QFZP audit readiness

A company that wants to benefit from Qualifying Free Zone Person treatment for UAE Corporate Tax should review its audit position separately from its standard ADGM annual accounts obligation. QFZP status may require audited financial statements even where the company would otherwise qualify for ADGM’s small company filing exemption, since the Corporate Tax requirement and the ADGM filing requirement are assessed independently of each other.

Documents typically required

Trial balance and general ledger, bank statements and reconciliations, sales and purchase invoices, contracts and agreements, payroll records, fixed asset register, shareholder and board resolution records, intercompany and related-party transaction schedules, and prior year financial statements or audit reports where available. Holding companies and SPVs should also prepare investment records, ownership documentation and funding agreements.

Why Choose Farahat & Co. for ADGM Audit Support

Farahat & Co. supports ADGM companies across holding structures, SPVs, investment vehicles, operating companies and professional service firms with annual accounts and audit readiness. Because ADGM’s audit requirement depends on a combination of entity type, size and regulatory classification rather than a single blanket rule, we review each client’s specific position before assuming whether the small company exemption applies or whether audited accounts are required.

Beyond ADGM, Farahat & Co. holds approvals across more than 20 UAE free zones, including DMCC, JAFZA and DIFC, giving groups with entities in both Abu Dhabi and Dubai a single audit partner. We also help ADGM companies avoid a common gap: assuming that qualifying for ADGM’s small company exemption also means no audit is needed for Corporate Tax and QFZP purposes, when the two requirements are assessed separately.

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About ADGM: Free Zone Profile

Abu Dhabi Global Market was established under Federal Decree No. 15 of 2013 and Abu Dhabi Law No. 4 of 2013, and has been operational since October 2015. ADGM operates its own civil and commercial laws based on English common law, with an independent regulator, the ADGM Registration Authority, and its own courts. Originally based on Al Maryah Island, ADGM’s jurisdiction was expanded in 2023 under UAE Cabinet Resolution No. 41 to include Al Reem Island, giving the free zone a combined area of more than 14 million square metres.

ADGM hosts a mix of financial institutions, holding companies, SPVs, investment vehicles and professional service firms, regulated for financial services matters by the Financial Services Regulatory Authority (FSRA) and for company administration by the ADGM Registration Authority. This combination of common law courts, an internationally recognised regulatory framework, and flexible structures such as SPVs makes ADGM a common choice for holding and investment structures operating across the region.

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, even if the company qualifies for ADGM’s own small company exemption.

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.
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