Dubai Multi Commodities Centre (DMCC), the largest free zone in the UAE, is a global trading and financial hub located in Jumeirah Lake Towers (JLT). If you have or are planning to set up your business here, here’s a handy guide for all your auditing needs.
Is auditing mandatory for a company in DMCC?
Yes. To that end, every company in DMCC is expected to maintain its audited financial reports. Failing to submit it to the free zone authority could lead to a penalty of AED 5,000 or rejection of the trade license renewal.
Anyhow, after the introduction of VAT since 2018, financial auditing serves the additional purpose of helping you file VAT at the end of every tax period.
What is the benefit of auditing for my company?
Auditing in DMCC ensures that your financial records are accurate and well maintained. These help you in staying on top of your company’s financial health. It is only at the end of every quarter that you’d realize what a boon auditing is for planning & budgeting. You can rest assured that your cash flows and borrowing capacity are in order.
When am I supposed to file my financial reports in DMCC?
You should submit your financial statements, audited by a DMCC-approved auditor, within 90 days of your company’s financial year ending. Not adhering to this deadline may result in a fine and/or non-renewal of your trade license in DMCC.
What is the audit process for a company in DMCC?
A company in DMCC is required to maintain its financial records. It is advisable that these be audited periodically – to prevent any sudden surprises at the end of the financial year, when these need to be submitted to the DMCC authority. Here, one thing you need to check is that the financial audit is conducted by an auditor that is licensed by the Ministry of Economy and approved by DMCC.
What records are required for the auditing?
For auditing your company in DMCC, your auditor may need the following documents, corresponding to the relevant period:
- Bank statements
- Credit/debit confirmation slips for all financial transactions
- Copies of bills and invoices
- Statement of deposits from the DMCC portal
- Memorandum of Association (MoA)
- Articles of Association (AoA)
In addition, you may need certain other requisite documents, as specified during auditing.
We at JAXA can assist you with all your auditing and accounting needs in DMCC. We are DMCC approved auditors, and have been assisting hundreds of firms with their audit in DMCC. Our team of veteran chartered accountants go beyond traditional fundamentals and add tangible value, seeing to it that auditing assumes a strategic and productive role in today’s corporate governance environment. We also identify areas for improvement and suggest means to help you to achieve your organizational objectives and make a positive contribution to the successful operation of your business.
For your company audit in DMCC, do contact us – we’d be happy to assist!