Most of the entrepreneurs in Dubai start-up their companies in Dubai free zone to take the advantage of unrivaled benefits such as fast permits, complete foreign ownership, tax benefits, and low-cost incorporation. Investors should, however, take care not to forget the necessary criteria when enjoying the various benefits. Since many free zones have made it mandatory for their approved businesses to file annual reports.
Conducting audit via approved auditors in UAE
Auditing can be conducted via recognized and approved auditors in Dubai, UAE. Kloudac is a highly reputed and recognized accounting firm in Dubai, UAE which helps with internal audit services, external audit services as well as forensic audit services. Companies who fail to provide this requirement on time will have to face difficulties and penalties such as the loss of their trade license.
Free zones in Dubai who consider auditing to be a legitimate obligation
Some of the reputed free zones in Dubai, UAE require auditing as an obligatory function. Some of the free zones are,
Dubai Multi Commodities Centre – DMCC
Dubai Airport Free Zone – DAFZ
Dubai International Financial Centre – DIFC
Jebel Ali Free Zone – JAFZA
The aim of this article is to provide you with information on auditing in Dubai free zones.
Book-keeping in Dubai free zones
The aim of start-up companies is to maximize their profit by evaluating business performances. That is the place where accounting and book-keeping plays a major role for the organization’s success.
Now we will draw our attention to financial record maintenance / book-keeping services in Dubai free zones for the audit purposes.
Companies in the UAE are required to keep financial reports for at least five years. This condition has been specified in several free zones’ implementing regulations. But JAFZA, one of the free zones in Dubai, has stated that the Free Zones companies (FZCO) and Free Zone Establishments (FZE) must maintain financial documents for a minimum of six years.
The books of accounts must be held at the registered office or another venue decided upon by the Board of Directors. And at the time of the audit, authorized auditors in Dubai should have access to the financial statements. Meanwhile companies must also hold books of accounts in accordance with UAE tax rules. Furthermore, companies working in Dubai free zones will request advice from the best audit firms in the region. One such audit firm is Kloudac.
Failure to submit audit reports,
The financial statements of businesses registered in the Free Zones must be audited every year. Failure to comply with the regulation by free zone companies in Dubai can result in severe penalties.
Non-compliance can impact the renewal of a trade license because most free zones require regular audit reports to be submitted at the time of renewal. Furthermore, Companies must employ a certified auditing company.
Kloudac as an approved auditor in Dubai Free Zone
It is a must for the companies to maintain financial records for minimum of five years and get them audited by approved auditors in Dubai, UAE. Since, Companies authorized by and working in Dubai free zones must have their accounts audited on time.
Kloudac is one such authorized auditing firm in Dubai, UAE.
Our internal audit services provide:
- Setting up Internal strategical and Tactical Audit Function
- Providing support to existing Internal Audit Function
- Internal Audit Quality Assurance Reviews
and many more. Whereas external audit services provide:
- Financial statement Audits
- Advice on the application accounting policies, accounting, and auditing standards
- Accounting System and Control reviews
These are some of the auditing services provided by Kloudac. Having 15 years of experience and 500+ customers were handles over the period. Kloudac as a leading audit firm in Dubai, UAE will help you with dealing audit issues in Dubai Free zone.