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Accounting & Audit

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RAVAD ZAKHR EDIN

Senior Business Consultant

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All legal entities registered in the UAE are obliged, in one way or another, to keep track of their financial operations and maintain up-to-date information about their assets and liabilities. Being thoroughly familiar with the requirements of the Emirati law, international standards of accounting, as well as best practice of local and international business, our dedicated team of accountants will provide you with hands-on support and assistance throughout the financial year, on a daily, weekly, or monthly basis dependent on the specific needs of your business.

UAQ FTZ is a strategic project of the Umm Al Quwain Government, seeking to encourage entrepreneurial initiatives and provide the necessary infrastructure for a successful business community.
from AED 6.000
For every company registered in the UAE mainland, a financial statement shall be prepared each year and approved by an independent auditor
from AED 6.000
Order
An entity registered in a Free Trade Zone within the UAE must keep accounting records sufficient to correctly ascertain its financial position, assets and liabilities
AED 5.450
Order

INCORPORATION SERVICES

It is true that offshore companies in the UAE do not have to file their financial statements with any government authorities. Nevertheless, they do have an obligation at all times to keep documents related to their economic activities, and have them detailed enough to make it possible for the directors to accurately determine the company’s financial position.

This definition leaves much room for interpretation and adjustment, but we normally recommend it to our clients to keep management accounts. Being basically a simplified version of a financial statement, management accounts cost less both in time and fees, but leave no doubt or ambiguity as to the company’s financial particulars should a need arise to prove them. Naturally, our professionals will find no difficulty in preparing such accounts for your offshore company in the UAE.

A sample page from managements accounts of a UAE company

ACCOUNTING FOR FREE ZONE COMPANIES

An entity registered in a Free Trade Zone within the UAE must keep accounting records sufficient to correctly ascertain its financial position, assets and liabilities. In some Free Zones such financial accounts are subject to mandatory audit and are to be submitted to Free Zone authorities along with an auditor’s report, while in others no audit is required.

Among the Free Zones that made it mandatory to have your financial statements audited, are:

The Emirate of Abu Dhabi is the largest emirate in the UAE, with its coastline stretching along the Persian Gulf for more than 650 km. The emirate is the country’s political and industrial centre, as well as a major cultural and commercial centre due to its position as a capital. Abu Dhabi accounts for about two-thirds of the UAE economy
from AED 6.000
Order
The Emirate of Dubai is located on the Arabian Peninsula, in the south of the Persian Gulf. Among the seven emirates that make up the UAE, it is the most populated one and second largest after Abu Dhabi. Dubai has more than 20 free zonesThe Emirate of Dubai is located on the Arabian Peninsula, in the south of the Persian Gulf. Among the seven emirates that make up the UAE, it is the most populated one and second largest after Abu Dhabi. Dubai has more than 20 free zones
from AED 6.000
Order
Hamriyah Free Zone is located in the Emirate of Sharjah. The Emirate of Sharjah with an area of 2,590 square kilometers is the third largest emirate in the UAE and is 10 km from Dubai and one hour from Abu Dhabi.
from AED 6.000
Order

… and others.

Meanwhile, if you are looking for a Free Zone with no mandatory audit, the following may be of interest:

The Umm Al Quwain Free Trade Zone (UAQ FTZ) is a strategic project of the Umm Al Quwain Government, seeking to encourage entrepreneurial initiatives and provide the necessary infrastructure for a successful business community
from AED 6.000
Order
The new Fujairah Creative City Free Zone was founded in 2007 and is primarily oriented towards formation of service and media companies
from AED 6.000
Order
Ajman Free Zone was established in 1988 in the administrative center of the emirate of the same name. Ajman is 40 kilometers from Dubai and is one of the cargo transportation centers due to its large port
from 6.000
Order

 

The company’s first accounting period begins on the date of incorporation and lasts for no more than 18 months. Every subsequent accounting period lasts exactly 12 months from the end-date of the previous period. Financial statements must be approved by the Board of Directors and signed by at least one director within 3 months of the end of the financial year, and submitted to the government authorities in 30 days upon that. All in all, once a financial year is over, a company has up to 4 months to finalize, have approved by an auditor (where required), and submit its financial statement to the authorities. If you company owns more than a 50% share in any other entity or several of them, it would be required to prepare a consolidated financial statement for the whole group.

The conclusions of an auditor’s report on the financial statement of a UAE company

ACCOUNTING FOR MAINLAND COMPANIES

For every company registered in the UAE mainland, a financial statement shall be prepared each year and approved by an independent auditor. In its basic outline, the requirements are quite similar to those existing in Free Zones, with the natural exception that no mainland company is exempt from having its financial statements audited.

The first reporting period begins on the date of incorporation, and lasts from 6 to 18 months. From then on, each following reporting period would be 12 months as counted from the end date of the previous one. By the end of a reporting period, a company must finalize its financial statement and obtain an auditor’s report to approve it. This statement, along with the auditor’s report, is then to be presented at the general meeting of the shareholders within 3 months of the end of the financial year.

If a mainland company holds shares of 50% or more in other entities, it must prepare a consolidated financial statement to cover both its own particulars and those of its subsidiaries.

GET ADVICE BEFORE GETTING STARTED

Tax burden is an important factor to consider in planning your business in the UAE, and we would recommend that you seek professional advice to ascertain in advance all potential costs and administrative complexities. Choosing the right corporate structure for your business is also crucial, as it will have a lasting impact throughout your UAE company’s subsequent operation. Our dedicated advisors will be more than happy to assist you in this.

DUE DILIGENCE AND INTERNAL AUDIT

If you already have a running UAE company, our experienced audit team will be able to carry out Internal Audit to monitor and analyze its operational activities with a view to a streamlining and optimization of the existent business structure. If you have any plans to purchase, invest into, or deal with a company in the UAE, you may be interested in a comprehensive Due Diligence Audit to scrutinize all aspects of its financial position – in which you can rely on our assistance and support as well.

BASIC FEES FOR OUR SERVICES

Advice on tax burden and corporate structure AED 660 (USD 180) / hour
Keeping accounts and records of your company as a structured archive of financial documents. They will be available to you at any time upon request AED 660 (USD 180) / hour
Drafting financial statements, arranging for an auditor’s approval, submission to government authorities AED 330 (USD 90) – AED 1.320 (USD 360) / hour
Fee for an audited financial statement with a minimal number of transactions (for a dormant company) AED 5.455 (USD 1.485)

The total fee for closing a financial year will depend on the quality, quantity, and complexity of the source documents you provide. We charge on a time-spent basis, with hourly rates ranging from USD 90 to USD 360 depending on the exact nature of work and the qualifications of the professional you would prefer to have assigned to it.

Should you need to obtain an individually estimated quote for your particular business, please do not hesitate to