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Are Free Zone Companies In Dubai And UAE Need To Be Audited?

25/03/2021

Free zones in UAE perform a powerful role in forming and sustaining a more sound social and financial development in the nation and also guide the nation to keep developing and housing different sorts of industries and varied businesses. So it is important to have a proper system to guide & control the member organizations functioning in the UAE free zones. Therefore most of the free zones have made it compulsory that the organizations under their authority have to submit annual financial statements & independent auditors' reports at the end of each accounting year before the renewal of their trade licenses.

Distinctive free zones situated in UAE have various guidelines and rules for auditing. The yearly audits have various guidelines for various organizations in various free zones. Many Free Zone Companies fused in Dubai World Central (DWC), Dubai Multi Commodities Center (DMCC) & Jebel Ali Free Zone (JAFZA) are leaving themselves endangered to potential fines & the non-renewal of their trading permit for inability to agree with one specific regulatory prerequisite.

Most businesses ignore the fact that they have to prepare & file yearly audited accounts. This necessity is set out in an organization's articles of association but many organization officials and chiefs stay ignorant of or sometimes dismiss the need to keep up appropriate monetary records, in any event, for their internal purposes, or to appoint the best Dubai free zone registered auditors.

Organizations that are enrolled in the free zones are recommended to direct their annual financial audit each year. For this, firms can take help from one of the best-listed auditors in a free zone or the best freezone auditing firms in Dubai, Sharjah, Abu Dhabi, etc to handle the audit as per the regulations & compliance requirements of the free zones. With expert help, businesses can accurately & easily present the financial reports after the auditing when they need to renew their business trade licenses. The standard reporting period of directing the auditing is one year however if an organization wants some other reporting period, it can do as such too yet it ought not to be under a half year or more than that of 18 months.

Periodic auditing of the financial statements of the organizations in the free zones is required and neglecting to conform to this may prompt punishments. To keep away from the fines and punishments, the audit in the free zone should be led timely. The current necessity is to present the reports to the authorities within 90 days of a free zone company's monetary year-end. Free zone businesses might be imposed to AED 5,000 as monetary punishment for each month when they failed to submit the audited financial report to authorities.

So by all means free zone companies need to maintain their financial statements. Though, these financial records should be independently checked by the auditors that are approved by the free zone authorities before they can be submitted. The fiscal summaries should be audited at the time of renewal of the trade licenses. It is prudent that the organizations keep an ordered record of all the financial transactions in their business. To submit the financial reports to the authority accurately, businesses can take the help of registered auditors in Dubai.

Looking For the Best Audit Company in UAE?

If you are in search of the best & reliable auditing services in the UAE, then without any second thought you can contact ARC Associates. We have a prominent presence in all the UAE Free zones as one of the most promising registered auditors in free zones.  We provide a range of services to our diversified clientele in the areas of financial audits, bookkeeping, accounting, business advisory, & other non-assurance services. We have a well-versed and qualified auditing team that provides the best solutions for your business auditing & accounting matters. If you need any audit services, please do contact us, we would be very happy to assist you!