The International Free Zone Authority (IFZA) in Dubai has set forth a new regulatory measure that reshapes business operations within the Free Zone jurisdiction. Effective from 30th September 2025, every business registered with the International Free Zone Authority (IFZA)in Dubai, UAE, is mandated to submit a financial statement for the previous financial year to renew their trade license. Ensure your financial records are ready on time to prevent complications in the renewal process. The obligation pertains to all businesses licensed under IFZA, including FZCOs and branches of international companies.
This plan aims to enhance transparency, strengthen governance, and align with IFZA’s international financial reporting standards. All businesses under IFZA should understand that this new compliance requirement is designed to prevent compliance issues and operational setbacks.
Who needs to submit an audited financial statement in IFZA Dubai?
Starting September 30, 2025, all IFZA-registered companies must submit audited financial statements as part of their trade license renewal. This requirement applies to every IFZA-licensed company, regardless of size or industry. The purpose is to promote transparency, enhance governance, and align IFZA with international best practices.
- Audited Financial Statement Requirements for IFZA Companies: IFZA-registered companies with an annual turnover exceeding AED 3 million or employing more than 10 staff must submit audited financial statements prepared by an IFZA-approved auditor in Dubai
- Simplified Financial Reporting: Small businesses or startups with an annual turnover of AED 3 million or less and fewer than 10 employees can submit an unaudited financial statement using IFZA’s approved reporting template.
IFZA Financial Reporting Implementation Timeline
Each company is required to submit a financial statement annually while renewing its business license, with the deadline depending on the company’s license expiry date.
- Grace Period: Companies renewing their licenses before 30 September 2025 are exempt from submitting audited financial statements for that renewal.
- Mandatory Submission: Starting 30 September 2025, every license renewal application must be accompanied by either simplified or audited financial statements, based on the size of the company.
With this phased implementation timeline, businesses have sufficient time to coordinate with auditors in Dubai, organize financial records, and ensure regulatory compliance.
The Rationale Behind IFZA’s Audited Financial Statement Rule
It is mandatory for companies registered under IFZA to submit an audited financial statement for the renewal of the trade license.
The goals are:
- Encourage transparency: Provide the financial information transparently and accurately.
- Abide by International Standards: Ensure that IFSA-registered entities follow international accounting standards (e.g., IFRS).
- To ensure tax compliance with the UAE FTA regulations.
- Prevent errors, misreporting, or fraud.
- A timely audited financial statement helps to strengthen accuracy and avoid any interruptions during renewals.
- Strengthening confidence: Improves business reputation with financial institutions, investors, and regulators.
Essential Financial Reporting Requirements for IFZA Companies in Dubai
- Reporting Period for Financial Statements: Financial statements must show the company’s last completed year before renewing the license.
- UAE FTA submitted financial statements: If your company has already submitted audited financial statements to the UAE FTA, the same documents can be used for IFZA license renewal, thereby reducing paperwork and simplifying compliance.
- Authorized Approval: The company’s financial statements must be signed by an authorized individual, such as a manager, director, or shareholder.
- Filing Method: Submit all financial statements electronically when applying for license renewal.
IFZA License Renewal: Financial Statement Submission Steps
The process involved in submitting a financial statement for IFZA license renewal is as follows:-
- Financial statement Preparation: Ensure financial statements are in the correct format: simplified for small entities, audited for larger companies.
- Audit Requirement: Companies above the set turnover or staff limit must submit financial statement reviews and be audited by an IFZA-approved auditor, such as Jaxa.
- Authorized Signature: All financial statements must be signed by a Manager, Director, or Shareholder.
- IFZA Portal Upload: Ensure that financial statements are submitted online through IFZA’s portal at the time of license renewal.
- Documentation review: IFZA will check and confirm that all submitted documents meet compliance requirements before license renewal.
Tips for IFZA License Renewal Compliance in the UAE
To stay compliant and prepared, companies should:
- Ensure your financial year-end is accurate in corporate records.
- Hire an IFZA-approved auditor in Dubai to prevent bottlenecks.
- Determine if simplified or audited statements are needed.
- Keep bookkeeping aligned with IFRS to ensure accurate and compliant records.
- Retain invoices, bank statements, contracts, and other records for verification.
Key Compliance Mistakes in IFZA License Renewal in the UAE
- Avoid Audit Delays: Start early to ensure your financial statements are ready for renewal.
- Non-IFZA Auditors: Auditors approved by the IFZA are accepted; otherwise, the process have to be repeated.
- Incorrect Fiscal Year: Ensure financial statements match the required reporting period to avoid rejection.
- Not Using Simplified Financial Statements: Small businesses eligible for Simplified Financial Statements (SFS) may end up paying for a full audit unnecessarily.
Why choose Jaxa as an IFZA-approved auditor in Dubai?
Jaxa Chartered Accountants is a trusted and leading accounting and auditing firm in the UAE, with its branches in Dubai, Sharjah, Abu Dhabi, and Jebel Ali, providing efficient and promising auditing services in Dubai. At Jaxa Auditors, our team of certified auditors, as well as UAE FTA tax agents, guides companies to stay ahead of evolving UAE regulatory requirements.
With over 18 years of experience serving clients from diverse industries, we have earned a reputation for delivering accurate and reliable audit services in Dubai. As an IFZA-approved auditor, our immensely qualified team handles auditing and financial evaluation for IFZA companies in Dubai.
Our key differentiators
- Accurate and compliant Financial statement
- Meet IFZA and IFRS reporting criteria
- Hassle-free License renewal
- UAE regulatory knowledge
- Assistance from the UAE FTA tax agent
- IFZA-approved expertise
Stay Compliant, Stay Ahead – Schedule Your Audit Now! Get Expert IFZA Audit Assistance.
Start Your License Renewal Process Today with Jaxa Auditors.
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