General audit of commercial companies in the UAE

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 must be aware of the requirements. Many free zones require companies that are licensed to do business to submit annual audit reports to the authority.

Some free zones mandate the need for an audit report to be carried out by an approved and registered auditing firm in Dubai. Businesses often ignore this requirement and it can lead to penalties or the suspension of your business license. Dubai International Financial Centers (DIFC), Dubai Airport Free Zones (DAFZA), south of Dubai, DMCC Y JAFZA have mandatory audit requirements.

This article is the essential guide to auditing companies in Dubai and the United Arab Emirates. You will also learn the benefits, consequences and requirements for auditing in Dubai Free Zones.

Maintenance of account books

The UAE’s main requirements for companies include the requirement to keep a financial audit report for up to five years. This requirement has been established in many areas, including DMCC implementing regulations. The JAFZA Implementing Regulations 2016 state that Free Zone Companies (FZCOs) and Free Zone Establishments (FZEs) must keep financial records for six years.

These record books must be kept at the registered address or an equivalent location as agreed upon by the directors. At the time of the audit, the financial records must be accessible to the auditors. Entities are required to keep record books and are based on the UAE FTA Law. For sound advice on record keeping, auditing and taxation, general business companies operating in Dubai can consult the best auditing firms in Dubai.

Also read: Audit for shipping companies and ports in the UAE

When should audit reports be submitted?

Most districts require companies to file reports with authorities within 3 months of the end of their fiscal year. Dubai South is an example of a district that requires reporting to authorities as part of the business license renewal process. The same is true for branches.

The fiscal year in the United Arab Emirates is technically determined using a calendar year. Therefore, companies can decide their own financial years. The financial year chosen must start from the start date and must not be less than six months, and must not exceed 18 months. FTA-approved auditing firms can help area businesses meet these requirements.

UAE Approved Audit Services

Districts, including Dubai Free Zones such as JAFZA and DMCC, require an auditing company approved and registered in Dubai to perform an annual audit. The UAE has a list of approved auditing services in the UAE maintained by the Free Zones (such as DMCC, Dubai South and JAFZA) and it is regularly updated. In order to audit accounts, auditors must have a valid UAE business license.

The consequences of not submitting audit reports

An annual audit report of the financial statements of companies registered in Free Zones is required. Failure to comply with the rules can result in severe penalties for free zone companies. Failure to comply with free zone requirements may result in the expiration of your business license. To avoid being penalized and losing business licences, companies must hire certified auditing firms in Dubai’s free zones.

Work with the best and approved business audit specialists in Dubai and the United Arab Emirates

Companies operating in the mainland and Dubai free zones must have their accounts audited. Companies must keep financial records for a maximum of five years. They should also have them audited in Dubai by certified auditors. Most free zone authorities maintain a list of approved auditors that they update periodically.

Farahat & Co is the approved auditing 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.

  • Whether the company keeps accurate accounting records.
  • Whether the company’s accounting books are consistent with the accounting records.
  • If the company’s accounts comply with the International Financial Reporting Standards.

Why Choose Audit Firms In Dubai For Your Business Company General Audit

Audit firms in Dubai are a highly respected chartered accountancy and auditing firm in dubai and UAE, has been in business since 2001. Farahat & Co’s team of auditors based in Dubai have extensive experience serving companies in a variety of industries. The business audit specialists at audit firms in Dubai add value to your business by conducting external audits in accordance with accepted standards.

What can we do for you

Farahat & Co handles all matters encompassing accounting and auditing for individuals and companies based in the UAE. If you would like more information about the services we offer and how we can help you. Contact us today!

Also read: Audit services in the United Arab Emirates for manufacturing companies

Leave a Comment