The United Arab Emirates is a rich country due to the presence of oilfields. The revenue from the oil and gas sector is more than enough to take care of the land, but in recent years, the country is looking to diversify its revenue sources. In order to do this, the country has established numerous free zones which attract foreign investments and help in the diversification of the economy.
One of the comparatively new and lesser-known free zones is the Umm Al Quwain free zone, also known as UAQ FZ, which provides many benefits to companies that come to establish themselves here. For more information on this free zone, keep reading ahead…
Umm Al Quwain Free Zone (UAQ FZ)
The emirate of Umm Al Quwain is not the most well-known amongst people. This emirate is located between the emirate of Ajman and Ras Al Khaimah. With only a 30-minute drive away from the Dubai International Airport and with a proximity to the essential ports in UAE, this free zone forms an ideal location for setting up Small and Medium Enterprises as well as large conglomerates.
This free zone started operations in early 2014 and was earlier known as Ahmed Bin Rashid Free Zone (ABR FZ). UAQ FZ can easily be accessed by all the three modes of transportation, making it one of the best suited free zone for a developing company. The free zone also provides a very investor-friendly business environment which is a critical factor in attracting investors from all around the world.
Benefits of Company Incorporation in UAQ FZ
As UAQ free zone is not so famous, the cost of setting up a small and upcoming business is comparatively less. The free zone also provides an easy and simplified method of business incorporation. The various other benefits of setting up a company in Umm Al Quwain free zone such as:
- Proximity to critical international airport and seaports
- State-of-the-art business amenities
- A one-stop-shop for all administrative services
- No taxation (corporate or personal)
- Very high level of confidentiality
- Availability of customizable office spaces
- Wide range of approved business activities
As the number of businesses in the free zone increases, the need for corporate financial services such as accounting, auditing, tax-related services also increase. Let's look at why auditing is an essential service to be performed by every company.
Why Is Audit Required in Umm Al Quwain Free Zone?
We all understand the importance of audit for a company. In UAQ free zone, all the financial statements of a company which is registered in the free zone must be audited annually. The submission of the financial statements can be made at the time of the renewal of the trade license of the company.
The standard period for reporting the financials is one calendar year, but a company may choose a different date which will start from the date of commencement of the company. It should be taken care that the period decided by the company is neither less than six months nor higher than eighteen months.
As soon as the business commences in the free zone, it is recommended that you maintain all the necessary financial documents of the company for future use. These documents will help in comparing the present business condition of the company with its past performance. After the comparison is made, the management of the company can take an informed decision. It should also be kept in mind that not all auditing and accounting firms can conduct an audit in the free zone. Only the UAQ free zone approved auditors or the UAQ free zone approved auditing firm will be allowed to perform such services inside the free zone.
JAXA is an auditing firm recognized and approved by The Umm Al Quwain Free Zone and aims to provide the best quality audit services possible. For details on the services provided by JAXA, do contact us – we’ll be happy to help!