Importance of Audit in SAIF ZONE
08

May 2020

The United Arab Emirates comprises of many free zones which provide numerous advantages and benefits to the upcoming businessmen and entrepreneurs. These free zones act as a springboard for the budding companies and provide various benefits to the companies. One such Free zone is the Sharjah International Airport Free zone (SAIF).

Sharjah International Airport Free Zone (SAIF)

The Sharjah International Airport Free Zone is better known as the SAIF zone is one of the largest free zone of all the free zones available in the United Arab Emirates. This free zone was established in the year 1995 and has never looked back since then. The free zone currently hosts more than 5,500 companies which are into varied industries. Some of these sectors are the manufacturing industry, IT industry, Media industry, trading industry, and many others.

The major aim of the SAIF free zone is to provide all the necessary advantages to a company that will be required by it for uninhibited growth. These services include quick and easy business incorporation services, availability of all types and sizes of office spaces and warehouses and to provide a one-stop-shop for obtaining all licenses and permits

Due to the above-mentioned benefits of setting up a company in the free zone many of the companies which are the pioneer in the industry have their offices here. The SAIF zone also provides the businesses benefits such as 100% repatriation of capital and profits, 100% foreign ownership and completely free transfer of funds. The aim of the establishment of the free zone along with the numerous benefits that the free zone provides make it one of the most versatile and dynamic free zone in the world.

Incentives to the Companies in SAIF Zone

The companies which are registered in the SAIF Zone can avail the following benefit and incentives:

  • Strategic location
  • Presence of excellent infrastructures
  • The ability of sponsorships of visa
  • Quick and easy procurement of licenses and permits
  • Lease of land for 25 years which can be extended for the same amount of period
  • Complete exemption from personal and corporate tax
  • Complete foreign ownership
  • No restriction on any type of currency
  • Spacious and beautiful accommodations for the laborers
  • Complete Repatriation of capital and profits

These benefits make setting up a business in this free zone a very lucrative and profitable move on the part of a company, but the incorporation of a company is not the end result. The upkeep of a company is way more hard than just incorporating.

Need for auditing in SAIF Free zone

SAIF zone is overseen by a local free zone authority. This authority comes up with various rules and regulations which need to be followed by all the various companies which are registered in the free zone. A company that does not comply with the set regulations by the authority may have to face consequences in the future.

In the SAIF Free zone, it is required by all the registered companies to conduct an audit of the financial statements of the company by a SAIF approved Auditor. The main purpose of this external audit will be to provide a surety that the company complies with the various rules and regulations as stipulated by the free zone and the financial statements provide a complete and true picture of the current financial scenario of the company.

The other important thing that the audit will do is that it will instill a sense of confidence in the hearts of the investors, both present and potential, that the company is on the right path. The different financial reports will provide the much-needed transparency to the investors so that they can make the informed decision whether their investment is properly being utilized.

The audit firms which are approved by the SAIF Zone, are the only auditing and accounting firms that can provide auditing services to a company in the free zone. The changes in the UAE laws in 2014 made the audit process more transparent and worked towards reducing the impact of the auditor over the audit process of the company. The recent changes in the laws are a step to make the audit process easier and more fruitful for everyone.

If you are looking for SAIF approved auditors which will provide all the audit services required by your company, then you should take a look at the services offered by JAXA Chartered Accountants. We at JAXA will take care of all your auditing requirements and will help you provide solutions to all your problems. To know all about the various services provided by JAXA do contact us, we will be happy to help.