By 31st October 2022, all companies under Dubai Development Authority(DDA) are required to submit their DDA audit reports. Most of the top audit firms in Dubai are registered auditors in Dubai Development Authority. DCCA 2016 regulations for private companies require all Free Zone LLCs and branches to submit an Audited Financial Statement by the deadline along with a summary sheet (according to the DDA template). After the end of the financial year, there will be a review every six months.
As a DDA approved auditor Farahat & Co. can assist you in the overall process. The Audited Financial Statements can be prepared in accordance with DDA regulations by our experienced auditors and submitted before the deadline so as not to incur unnecessary fines.
What is Dubai Development Authority(DDA)?
Previously known as the Dubai Creative Clusters Authority (DCCA), the Dubai Development Authority (DDA) was established to foster Dubai’s future economic growth. The organization gives talents and businesses a chance to grow in an attractive business setting that encourages growth. By improving economic competitiveness and setting global standards, the organization is improving the quality of life for all. Additionally, it offers an array of integrated programs pertaining to strategic sectors and urban development.
According to DCCA regulations 2016, entities that are authorized by the authority must keep their accounting records and books for an average of eight years, or for any other period, the registrar may specify. A further requirement of the regulations is its conformity to Standards of accounting generally accepted, as approved or prescribed in the Registrar’s records. International Financial Standards are usually used for audited financial statements in the UAE since it does not have its own accounting standards.
What is a DDA Audit Report?
Businesses registered under Dubai Development Authority are required to file their latest audited financial statements, along with a summary sheet, by 31st October 2022. It is mandatory for these entities to file their statements via the AXS portal.
Here is the notification from AXS portal:
“DDA requires all FZ LLCs operating under its administration to maintain audited financial statements. For foreign subsidiaries, however, additional financial statements are not mandatory if the parent company’s financial statements include the accounts.”
Significance of Dubai Development Authority Audit Report
For license renewal in DDA, an audit report is mandatory, and our service can be rendered as DDA registered auditors.
The UAE government introduces corporate tax in UAE and other legislation to closely monitor business entities across the country. An annual audited financial statement filing would be required by the mainland licensing authorities.
Requirement of DDA Audit Report & Audited Financial Statement?
Each company’s board of directors must present audited financial statements to the yearly general meeting within six months of the end of each financial year, including:
- An analysis of operating results during the period in question (i.e. a loss and profit statement);
- The retained earnings statement or the equity and deficient statement.
- Latest balance sheet.
- Annotations to the audited financial statements
Within seven days after its annual general meeting, the company must submit a copy of its auditor’s report and financial statements.
Deadline to Submit DDA Audited Financial Statements
Companies within DDA zones are required to submit the most recent audit report and summary sheet by 31st October 2022 in the standardized format by DDA, and subsequently within six months after the end of this financial year. Audit reports and summary sheets are to be submitted via the AXS portal. Below is a list of information that must be included in the summary sheet:
- A Loss and Profit account that shows sales cost, revenue, operating profits, operating cost, gross profit, interest expenses, amortization, depreciation, other income/net profit, and loss.
- Balance sheet: Investment, Fixed, and current assets, current and long-term liabilities, retained earnings, share capital, surplus & reserves.
FZ – LLCs and Branch Companies must comply with these submission requirements, and not freelancers. DDA may fine and suspend licenses for failure to comply with the aforementioned procedures.
Registered Auditors in Dubai Development Authority
Farahat and Co. is a registered auditor in the DDA, specializing in auditing businesses, governments, and others. As a top audit firm in Dubai, we provide a thorough understanding of your company’s financial status as well as input on how to improve it and identify hidden risks.
We offer high-quality auditing and accounting services in line with UAE law, recognizing the importance of auditing in DDA.