Dubai-based entrepreneurs can set up companies to enjoy unparalleled benefits, including fast approvals, foreign ownership and tax benefits, as well as the ability to quickly incorporate at low costs. Investors should be aware of the requirements. Many free zones require companies that are licensed to do business need to submit audit reports annually to the authority.
Some free zones demand on the need for an audit report to be performed by approved and registered auditing firm in Dubai. This requirement is often ignored by companies and can result in penalties or the suspension of their trade license. Dubai International Financial Centers (DIFC), Dubai Airport Free Zones (DAFZA), Dubai South, DMCC , and JAFZA have mandatory audit requirements.
This article is the crucial guide to company audit in Dubai and UAE. You will also learn the benefits, consequences and requirements for auditing in Dubai free zones.
Maintaining Books of Accounts
In UAE’s main requirements for companies include the requirement to maintain financial audit report for at most five years. This requirement has been stated in many zones, including the DMCC’s implementing regulations. JAFZA Implementing Regulations 2016 state that Free Zone Companies (FZCOs) and Free Zone Establishments (FZEs) must keep financial records for six-years.
These books of records should keep at the registered address or in an equivalent location as agreed upon by the directors. At the time of audit, the financial records must be accessible to auditors. Entities should keep the books of records and is based on the UAE FTA Law. For solid advice regarding record-keeping, auditing and tax purposes, general trading companies operating in Dubai can consult the best auditing companies in Dubai.
When Audit Reports Should Be Submitted?
Most districts in demand that companies submit reports to authorities within 3 month after the end of their financial year. Dubai South is one example of a district that requires the submission of the reports to the authorities as part the renewal process for trade licenses. The same is true for branches.
The financial year in UAE is technically determined using a calendar year. Companies can therefore decide their own financial years. The financial year chosen should start from the date of inception and should not be less than six months, and it must not exceed 18 months. FTA approved auditing firms can assist companies in the zone to meet these requirements.
Approved Auditing Services in UAE
Districts including, free zone areas Dubai such as JAFZA and DMCC, require that an annual audit be conducted by approved and registered auditing firm in Dubai. The UAE has a list approved auditing services in UAE that is maintained by the Free Zones ( such as DMCC, Dubai South & JAFZA) and updated regularly. To be able to audit accounts, the auditors should have a valid UAE trade license.
The Consequences Of Not Submitting Audit reports
An annual audit report of financial statements for companies registered in Free Zones is required. Failure to adhere to the regulations may result in severe penalties for free zone companies. Non-compliance with the requirements of free zones may result in the expiration of your trade license. To avoid being penalized and losing trade licenses, companies should hire certified audit firms in Dubai-free zones.
Work with The Best and Approved Company Audit Specialists in Dubai and UAE
Companies operating in mainland and Dubai-free zones are required to audit their accounts. Companies must keep financial records for at most five years. They should also have them audited in Dubai by certified auditors. The majority of free zone authorities keep a list with approved auditors that they update regularly.
Farahat & Co is the approved audit firm in Dubai, DMCC and DIFC, JAFZA, DSO, Dubai South. To form an honest and fair opinion, our highly professional auditors will conduct independent investigations.
- If the company keeps accurate accounting records.
- If the company’s books of accounts are consistent with the accounting records.
- If the company’s accounts are in compliance with International Financial Reporting Standards.
Why Choose Audit Firms in Dubai For Your General Trading Company Audit
Audit firms in Dubai is a well-respected chartered accounting and auditing firm in Dubai and UAE, has been in the business since 2001. Farahat & Co’s Dubai-based team of auditors has extensive experience serving businesses in a range of industries. Company audit specialists at audit firms in Dubai add value to your business by performing external audits according to accepted standards.
What We Can Do For You
Farahat & Co handle all matters spanning accounting and auditing for individuals and companies based in UAE. If you wish to learn more about the services that we offer and how we can help you. Contact us today!