Importance of Accounting in DMCC Free Zone
04

Nov 2019

One of the key features that attract the business owners and entrepreneurs to Dubai is the availability of Free Zones. The Government of UAE has built multiple tax-free zones that provide several benefits to the owners ranging from tax exemption to the low-cost company incorporation process. The city of Dubai holds a count of more than fourty free zones, dedicated to different business sectors. One among them is the Dubai Multi Commodity Centre (DMCC) that grabs the attention of business professionals dealing in the commodities trading business. The destination offers multiple business incorporation facilities but also demands the maintenance of accounting and audit books professionally. This guide will highlight the importance of accounting in DMCC. Let’s proceed.

A Glimpse on DMCC

Situated in the Jumeirah Lake Towers Dubai- the DMCC stands as a flourishing marketplace and serves to be a home of more than 15,000 registered members as of 2018. The zone is dedicated to delivering high-class business services, and a dynamic community to their clients to carry out the business activities. The region holds boundless opportunities for the below mentioned businesses industries:

  • Gold
  • Diamonds
  • Tea
  • Coffee
  • Pearls
  • Spices
  • Agro
  • Base Metals
  • Trading and repairing
  • Financial intermediation
  • Real estate and business services
  • Transport, Storage and Communication

Since the region stands as a reputed business investment destination, it also mandates the business entities to follow strict rules in maintaining their accounting books. The different types of business entities that can incorporate their business in DMCC include:

  • Limited Liability Company as a newly formed entity with single or multiple shareholders
  • Limited Liability Company as a wholly-owned subsidiary of a local or foreign company
  • Branch of local or foreign company

All the business entities registered in DMCC need to maintain their company books in an error-free way. Now, you might be wondering why accounting? Well, the answer is just below.

Accounting- The Language of Business

The concept of accounting gets infused into a business entity even before its incorporation. Once you obtain the required trading and commercial license, you can carry out the business operations. These transactions need to be recorded as and when they take place. Maintaining a proper bookkeeping and accounting records will help you to analyze the potential that your company holds. Moreover, you will be able to keep track of the company finances.

Benefits of Accounting Services

Some of the benefits that you will derive by implementing accounting into your business premises are stated below:

  • Helps to maintain the company record in a clean way
  • You will be able to identify the expenses occurred and revenue generated
  • Helps you to understand the financial scenario of your business
  • Helps to identify the unwanted costs
  • Paves out new ways for investments
  • The goodwill of the company gets enhanced
  • The audit process turns out to be easier
  • Helps in budget preparation
  • Avoid financial crisis etc.

Once you keep track of the accounting records and fetch out the important benefits it provides, the growth of your business can be planned more efficiently. To carry out the activities in an error-free way, the DMCC demands the business entities to carry out professional accounting solutions.

Benefits of Availing Professional Accounting Services

By availing the professional accounting services, you will be able to gain the following benefits:

  • The accounts will be maintained in an error-free way
  • Work will be completed at a faster pace
  • The professional accountant acts as a guide to increase your business growth
  • Market insights shared by the accountant turns out to be beneficial
  • Any loopholes in the accounting books can be figured out instantly
  • Business planning can be done in an efficient way
  • A professional accountant stands by your side during the audit process

Now, you must be wondering whom to approach? Well, don’t worry. We are here to provide you with a complete solution. JAXA Chartered Accountants stands as the DMCC approved auditors has been helping multiple clients across UAE in simplifying their company records.  Our accounting experts take utmost care in understanding your business needs and provides customized solutions accordingly. If you are planning to opt for accounting services, do contact us today-we’d be glad to assist.