GSL / Foreign Companies Audit / Audit UAE

Emirati company audit, financial statements, accounting, consulting in UAE

The UAE, an Arab state located along the Persian Gulf, is the fastest growing country in the world. Stable banking system, fast company incorporation, possibility to establish a real presence in the country of incorporation, possibility to obtain a resident visa for shareholders and employees. There is no financial reporting and auditing requirement for offshore companies and for companies from a number of Free Economic Zones (FEZ). Companies registered in UAE Free Zones and offshore companies are exempt from income tax, capital gains tax, property tax and other taxes, except VAT.

Expand description »
Service packages «Media Zone “twofour54” Abu Dhabi, UAE» Service packages «United Arab Emirates: Khalifa Industrial Zone Abu Dhabi (KIZAD) Free Zone» Service packages «United Arab Emirates: Ajman Free Zone» Service packages «United Arab Emirates: Offshore Company in Ajman (AFZA)» Service packages «FEZ “Dubai Science Park” (DSP), Dubai, UAE» Service packages «IFZA (International Free Zone Authority)» Service packages «Meydan Free Zone (MFZ)» Service packages «United Arab Emirates: Dubai Internet City Free Zone» Service packages «United Arab Emirates: Dubai Mainland Company» Service packages «United Arab Emirates: Dubai Multi Commodities Centre (DMCC) Free Zone» Service packages «United Arab Emirates: Dubai South Free Zone» Service packages «United Arab Emirates: Offshore Company in Dubai (JAFZA)» Service packages «United Arab Emirates: Fujairah Creative City Free Zone» Service packages «United Arab Emirates: Hamriyah Free Zone» Service packages «United Arab Emirates: Free Economic Zone Ras Al Khaimah (RAKEZ)» Service packages «United Arab Emirates: Offshore Company in Ras Al Khaimah (RAK)» Service packages «United Arab Emirates: Sharjah International Airport Free Zone» Service packages «United Arab Emirates: Sharjah Media City Free Zone» Service packages «United Arab Emirates: Umm Al Quwain Free Trade Zone» Legislation Tax System Audit Services
Liquidation of a company in UAE. Keeping the company's accounting records

Maintaining a systematic archive of company documents and providing them to the client upon request

USD 200 per hour
Preparation and submission of accounts, audit

(Depending on the type of work and the qualifications of the person employed, but not less than 1 900 USD)

Registration of a company for VAT
1 200 USD
Preparation and submission of VAT returns

(According to the time actually spent)

USD 200 per hour
Tax advice on VAT-related and other matters
USD 300 per hour
Any additional services at the client’s request
USD 200 per hour

Price Calculator

The calculator allows you to calculate the approximate cost of maintenance of accounting services to support and audit the company.

Calculate
Your Consultant
Поиск консультанта...

Поиск консультанта...

General requirements

United Arab Emirates consist of seven emirates:

  • Abu Dhabi
  • Dubai
  • Sharjah
  • Ras al Khaimah
  • Fujairah
  • Ajman
  • Umm al-Qaywain

UAE suggest three types of company formations to conduct business.

  1. Offshore company (International Business Company)
  2. Onshore company (Free Zone Company)
  3. Mainland Company

As a rule an Offshore company doesn’t have to submit financial statements to state authorities on the territory of UAE. However the company must keep records and documents attesting its economic activity in a volume that may let the directors determine its financial status. The terms for which the records must be kept are set by separate Regulations which determine the procedure of registration and operation of offshore companies in free zones. For example, in Jebel Ali free zone an offshore company must keep accounting records for 10 years.

The directors are obliged to prepare financial statements and present them to the shareholders of the company on an annual basis.

Onshore company should keep accounting records in a volume that would be enough to reflect its financial status and actual information on its assets and obligations. Such records should contain information on assets and obligations of the company, as well as daily transactions of funds (cash and non-cash).Terms for the records keeping are determined by the regulations of the particular Free Economic zone. The company should annually prepare financial statements.

Financial statements must be audited and submitted to the state authorities (with some exceptions) in such emirates as Dubai, Sharjah, Abu Dhabi and Ras al Khaimah. Free zones situated in emirates Fujairah, Ajman and Umm al-Qaywain as general don’t have requirements to undertake audit and submit financial statements to state authorities. However if there is a request from the bank or necessity to obtain certificate of tax residence even companies, registered in Fujairah, Ajman and Umm al-Qaywain, might be required to undergo an audit.

In total, there are more than 45 Free Economic zones in the UAE.

Requirements to financial statements and audit in main Free Economic Zones:

Free Zone
Accounting records
Preparation of financial statements
Audit
Submission of financial statements to state authorities
Terms for submission of financial statements
JAFZA Emirate Dubai
yes
yes
yes
yes
3 months
DIC Emirate Dubai
yes
yes
yes
yes
6 months plus 7 dayes
DWC Emirate Dubai
yes
yes
yes
yes
3 months
DMCC Emirate Dubai
yes
yes
yes
yes
3 months
IFZA Emirate Dubai
yes
no
no
no
---
SMC Emirate Sharjah
yes
yes
no
(on request)
---
SAIF Emirate Sharjah
yes
yes
yes
yes
3 months
HFZA Emirate Sharjah
yes
yes
yes
yes
3 months
AFZA Emirate Ajman
yes
yes
no
(on request)
---
UAQ FTZ Emirate: Umm al-Qaywain
yes
yes
yes
(on request)
---
RAKEZ Emirate: Ras Al Khaimah
yes
yes
yes
yes
6 months
FCC Emirate: Fujairah
yes
yes
no
(по запросу)
---
FFZ Emirate: Fujairah
yes
yes
no
(по запросу)
---
ADGM Emirate: Abu Dhabi
yes
yes
yes (provided: turnover – more than 13.5 million USD; number of employees – more than 35)
yes
9 months
KIZAD Emirate: Abu Dhabi
yes
yes
yes
yes
6 months plus 7 days

Emirate Sharjah

Mainland company must keep accounting records for at least 5 years from the end of fiscal year. According to the UAE Commercial Companies Act a company should prepare financial statements and undergo annual audit as well. These companies must submit annual report on the company’s activity and an auditor’s opinion to the Ministry of Finance or Ministry of Industry to renew the company’s license.

Companies with a local partner and companies, registered in Free Zones of UAE, should obtain a license to carry out an activity. There are six main types of licenses: industrial, commercial, professional, tourist, agricultural and xxx

Terms of submission of financial statements

As a rule the first fiscal year ends on 31st day of December of the current or next year. The first period cannot be less than 6 and more than 18 months. But there are exceptions.

There are exceptions. For example, FZE in Free zone Hamria (HFZA) – for these companies first fiscal period might not match with the calendar year.

The companies as usual have a period from 3 to 9 months (it depends on the Free zone) from the end of fiscal year for preparation of audited accounts.

Audit

In emirates with higher reputation – such as Abu Dhabi, Dubai and Sharjah – audit is mandatory. There is no requirement for a mandatory audit in northern emirates. The exception is - Ras al Khaimah.

Some free zones (as a rule in Dubai) require a signed Auditors Appointment letter at the time of the company’s incorporation.

Liability for delay in submission of financial statements

Free zone companies might be subject to financial penalty of 5 000 AED (~ 1 400 USD) for each month of the period during which financial statements have not been submitted. The companies might request extension of the period to submit financial statements. The main risk of non submission of audited financial statements is that companies will be denied in renewal of their trade licenses (licenses to operate activity).

Consolidated financial statements

Companies with subsidiaries (if the share in a subsidiary is more than 50% of shares) must prepare consolidated financial statements for the group of companies.

Need a consultation from a specialist?
Share on social media:

Banks of UAE

Bank
The cost of opening an account, $
Global rating
Countrywide rating
GSL rating
2 500
N/A
N/A
2 500
N/A
N/A
2 500
N/A
N/A
2 500
N/A
N/A
2 500
N/A
N/A
2 500
239
1
RU EN