Any legal entity registered in the UAE is obliged to keep proper accounting records that are sufficient to enable the financial position of the legal entity to be determined and reflect up-to-date information about its assets and liabilities. Offshore companies in the UAE do not have an obligation to file their financial statements with government authorities (preparation of management accounts is recommended). For Free Zones companies in the UAE there is an obligation to prepare financial statements annually (but in some Free Zones there is no requirement to undergo audit and file accounts with state authorities). For every mainland company registered in the UAE financial statements shall be prepared each year and approved by an independent auditor.