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All you Need to Know About Ajman Free Zone Approved Auditors

Ajman Free Zone is a tax-free haven for businesses in the United Arab Emirates. Established in 1988, it's one of the older free zones in the UAE. The key commercial eco-system AFZ is situated in the emirate of Ajman at the entryway to the Arabian Gulf. It is a top location for international corporations and investors hunting for an ideal to conduct business without paying taxes.

Ajman Free Zone offers companies several advantages, including 100% foreign ownership, no corporate or personal income tax, and no restrictions on foreign currency. Moreover, being a free zone, there are no import or export duties levied on businesses operating within Ajman Free Zone.

The UAE Corporate Tax is scheduled to go into effect on June 1, 2023, but the government could release the Corporate Tax Law earlier than that. Corporations have a limited amount of time to get ready for corporate tax. Even while it is best to make important tax considerations after the legislation is passed, keeping up with your financial records must be done right away.

Audit Services Offered by Approved Auditors in Ajman Free Zone?

These top audit firms in Dubai can assist you with every step of the audit process, from planning and organizing to executing and reporting.

And, because they're familiar with the Ajman Free Zone rules and regulations, they can help you make sure that your business complies with all the requirements.

Auditing services are used by businesses to reassure their shareholders about the authenticity of their financial data or regarding the effective functioning in accordance with the rules. The following are the several audit types that you should be expecting from Ajman free zone approved auditors:

  • Financial Audit 
  • Internal Audit
  • External Audit
  • Tax Audit
  • IT Audit

AJMAN free zone audit services also include:

  • Bookkeeping and accounting services
  • Services for incorporating and registering businesses
  • Tax consulting (including services for VAT accounting) and legal consulting
  • Internal audit services

Read More : DMCC Approved Auditors

All Free Zone Entities Must Audit Financial Statements

The UAE Corporate Tax applies to Free Zone Entities, and they are required to submit tax returns. However, as long as Free Zone Persons keep a constant substance and adhere to all legislative criteria, the UAE Corporate Tax system will retain the tax incentives presently being provided to Free Zone companies.

To take advantage of the 0% corporate tax rate, Free Zone Persons must create proper financial accounts and have them audited. In the event that a firm's financial records need to be audited by an approved audit firm, the pertinent corporate rules and regulations will still apply. In Dubai, corporate tax consultancy services can help you create the best financial accounts and have them audited.

Why are Approved Auditors Required in Ajman Free Zone?

Here are the following duties accomplished by highly qualified approved auditors in Ajman free zone:

  • To ensure compliance with financial regulations
  • To identify and manage risk
  • To improve your financial reporting
  • To assess your company's financial health
  • To benchmark your business against others in your industry
  • An audit firm in Dubai can provide advice on how to improve your business processes
  •  They also offer guidance on how to maintain good corporate governance practices.

Audits are conducted for the following reasons:

  1. To review compliance with a wide range of organizational standards.
  2. To ensure that a firm is running well.
  3. To maintain or improve the company's standing in the community.
  4. To conduct an examination known as "due diligence" for stakeholders or potential investors.
  5. To instill confidence in an administration that the company is operating smoothly and that you are ready to handle any issues that may arise.

What are the Duration and Steps of the Audit in AFZ?

  • 6 to 18 months for new entities
  • For Free Zones, 12 to 15 months.

External audits are typically done once a year. If a company's management requires special objective audits, they may be conducted over a longer time frame, possibly even many years.

The steps involved in the process are:

  • First, make sure that your company is registered with the authority. Once you're registered, you can then apply for approval.
  • Next, select an auditor from the list of approved firms. Make sure that the auditor is qualified and experienced in auditing companies in free zones.
  • Finally, submit all the necessary documents to the auditor, including your company's charter, bylaws, and articles of association. The auditor will then review your documents and provide a report to the authority.

Farahat and Co. are one of the top audit firms in Dubai that provides accounting and auditing services. As Ajman free zone approved auditors, we will take care of all your business problems and provide a hassle-free experience for you. Our auditors will also ensure that the company follows the rules and regulations of the free zone.

Read More : DAFZA Approved Auditors : Everything You Must Know About

Ervee is a CPA with international experience in Tax and Accounting. He has over 12 years of experience in accounting and bookkeeping and over a year in VAT implementation, registration, and accounting in UAE. He regularly drives out inefficiencies in company operations and loves the challenge of helping clients find additional ways for an easier and improved compliance and verification of transactions.