Different free zones based in UAE have different rules and regulations. Same is the case with the audit. The annual audits also possess different rules for different companies in different free zones.
Audit in free zones
Companies that are registered in the free zones are advised to conduct their annual financial audit every year, companies can take help from auditing firms in Dafza, auditing firms in Jafza or auditing firms in Dubai, Abu Dhabi, Sharjah UAE. Also, they ought to submit the financial reports after the audit when they have to renew their trade licenses. The standard reporting period of conducting the audit is one year but if a company desires any other reporting period, it can do so as well but it should not be less than 6 months or more than that of 18 months.
Maintain your business records right from the start
Companies should maintain their records right after their formation in the UAE. They are advised to do so because it carries a lot of benefits with itself. Having recorded all the transaction and business details play a huge part for the company during the audit periods. These records basically hold the true picture of the company so, not maintaining them may harm the reputation of the company. Also, having the proper record may help the company in completing its annual audit in time and effectively.
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Audit services in UAE
We are all aware of the fact that business companies are always looking for good quality yet affordable services for every function that has to carry out. Farahat and Co. not only helps its clients in availing the best services but also adds maximum value to the functions. They offer the most cost-effective yet the best quality services while keeping in mind the preferences of its clients. They mould the services as per the needs and the demands of their clients in order to make sure that everything is up to the mark.
The Annual Audit for UAE free zones is Mandatory
All the companies that are present in Dubai free zones must carry out the annual audits on time because it has been made mandatory for them. If any of the companies do not comply with the rules of carrying out a proper audit will have to pay every financial penalty. So, in order to avoid all the penalties, you must make sure to submit your annual audit report on time without any delay.
No Matter what type of a company you possess, the audit is mandatory including that of free zone companies (FZCO) and free zone establishments (FZE). For finalizing the audits, it is really important for the companies to maintain their financial records.
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Till when is the company advised to maintain its records it UAE?
In UAE, the companies are required to maintain their records for no less than 5 years. Companies present in UAE’s mainland must carry out the audit properly on time. Even though for the mainland companies an audit is not a requirement for license renewal like that of free zones.
Preparation and Submission of the Audit is different
Companies need to keep this in the mind that preparing the audit reports and submitting them to the authorities are totally different things. There are some free zones that do not require to submit their audit reports for different companies but this doesn’t mean that they do not even need to formulae the audit reports and prepare them. The waiver is only for the submission and not for the preparation. So, the importance of preparing the audit reports should never be overlooked at any cost.
Maintaining financial records is very important for almost all types of companies in both mainland and free zones. After the closure of the financial period of the companies, they usually have about 3 to 6 months in order to complete their audit reports and submit them to the authorities. In this case, the general assembly.
Other Benefits of Audit
There are some companies who take the help of auditing companies in Dubai in order to understand and get an idea about their performance. Due to the audit, the companies also get an idea about the areas which require more attention from the companies.
Getting the audit services in UAE has become the need of the time. A number of people outsource the function and for that purpose. The audit firms in UAE are working day and night. They possess the best auditors who know their job. They carry out the auditing tasks in an effective manner. While relieving the burden of the company to a great extent.
These auditors in Dubai, UAE have a very good understanding of the rules and regulations related to audit services. That is why they are a good choice for assigning all the stress of the audit. They know how to deal with all kinds of complexities which makes things a lot easier for the companies.
Farahat and Co. is the best international audit company in UAE having expertise in a number of areas. You must consult them and make your company better than before.