Auditing is one of the most important functions which every business needs to perform and it can become a very important factor in realising if the business is profitable or if there is some problem, either current or potential, to be faced by the business. This is the reason why it is important to have auditors who understand your company and help the company to be more profitable.
This article is about the importance of approved auditors in JAFZA (Jebel Ali Free Zone Authority).
About JAFZA (Jebel Ali Free Zone Authority)
JAFZA is one of the established free zones in the UAE and is an excellent place to set up a business. With the increasing number of businesses coming into the country, the government of UAE has taken steps to ensure that more and more businesses from all around the world come to the country and bring in more FDI with them. This increase in the number of businesses provides a great opportunity to financial firms such as Auditing and Accounting firms.
Free economic zones (or FEZ) are defined as areas where a company can trade goods and other products at privileged tax and customs rates. The idea for free economic zones was initially introduced in order to boost international trade in a particular area by giving them incentives like 100% ownership by a foreigner or a foreign company. Currently, UAE has around forty-five free zones.
JAFZA was established as a free economic zone in UAE in the year 1985 and is spread across an area of around fifty-seven square kilometres. It has more than seven thousand global companies, more than a hundred companies established there are included in the Fortune Global 500 companies. JAFZA got the ISO 9001:2000 certifications in 1996, and it aims to stay strong and helping the UAE develop financially and become one of the most significant business hubs in the world. There are a lot of benefits of setting up a business in JAFZA, and some of them are discussed in this article in order to make the readers realize that it is a great business opportunity to set up a business there.
Benefits Of Setting Up A Business In JAFZA
There are a number of benefits to be availed by a business when establishing itself in the JAFZA Free Zone. These benefits are as follows:
- One of the most significant advantages available to a business in the free zone is that it provides complete ownership of the business.
- JAFZA is a very good place in terms of infrastructure and also has a very good mechanism in place for good and quick communication.
- There is no restriction on hiring employees from other countries. They allow you to hire foreign employees also.
- There are many trading companies established in free zones. This is due to the reason that no import and export duty is levied on the business in the free zone.
- It gives you a concession on tax also, i.e., you have to pay zero per cent corporate tax for fifty years.
- There is no income tax levied on the businesses in the free zone.
Importance Of Approved Auditors In JAFZA
Auditing is accessing the efficacy of a company's or a trade's internal control. Maintaining a good record for the internal control of a company is an essential factor to judge the growth of the same company. An auditor is a person who looks into the matter, examines and reviews the financial records and also makes sure that the company complies with appropriate tax law. Therefore it is essential that the person who looks into the matter is reliable and trustworthy, and hence hiring an approved auditor is always recommended to prevent any fraudulent or misappropriate practice going in the company.
Auditing is a significant factor on which the growth of a company depends. JAFZA is a platform that provides business opportunities to people with added benefits to it. Auditors also help you to grow your business and assist you in analysing the errors and mistakes in your accounting. Therefore it is vital that auditors hired are reliable. Here we discuss how an auditor helps in the financial situations of a company.
- An auditor reduces the workload and burden a lot as he handles all the reviewing and examining the process of the financial state of the company.
- Being a professional, he can also guide and help you with different accounting sectors, like bookkeeping, accounting, etc.
- The process of analysing the accounting of the company also became fast as he is an expert in that field.
- The chance of making a mistake in this process is zero as he makes sure that the accounting and taxes in your company are handled responsibly.
All the above benefits indicate a reader towards the fact that hiring an approved auditor for any accounting process actually reduces the burden and also makes sure that the process is error-free. As JAFZA is an established business zone, the need to hire an approved auditor increases as they will help you to grow your business and make it profitable for you. The importance of an approved auditor in JAFZA has been discussed in the section below.
- They will analyse the financial state of the business and can advise you about the upcoming threats or profits in your company.
- They will rectify any mistake found in the accounting of your company while auditing it.
- The auditing process will take place from time to time, making sure that the chances of any misappropriation reduce to zero.
- As accounting is without any mistake and error, the goodwill in the markets also builds slowly and gradually.
Auditing is the work of experts and is a crucial factor for the financial state of a company, and therefore a company should make sure that the auditors hired by them are professional. Jaxa Chartered Accountants is a firm in the UAE comprising of professional accountants who provide you with different accounting services and are also approved in JAFZA. If you need help with any accounting or auditing process, feel free to contact us.