Are financial audits mandatory for companies in a Freezone? Is it required to submit books of accounts need on annual basis? Stressed about the penalties or conducting financial audits in Free Zone companies? These key questions might be pressing the entrepreneurs looking to establish a Free Zone company in the UAE
Several Businesses in the Free Zone in the UAE provide a strategic gateway to a growth-oriented ecosystem. Free Zone businesses are required to prepare financial records and must undergo mandatory audits by approved audit firms in UAE to maintain compliance and track business growth. Jaxa Chartered Accountant is a leading and approved auditor and an UAE FTA approved tax agent delivering the best Free Zone auditing services in Abu Dhabi, UAE.
In this blog, let us have a clear understanding of the significance of mandatory financial audits in Free zones across the UAE and Abu Dhabi.
Auditing in the Abu Dhabi Free Zone
Every free zone business in UAE including Abu Dhabi has distinct governing rules and regulatory requirements that businesses must adhere to. Businesses must maintain unique requirements set by each free zone authority.
Before moving on to the rules of free zone auditing requirements in the UAE. Let us make you clear of the auditing in the Free zone in Abu Dhabi, UAE.
An audit in a free zone in the UAE refers to an independent review of financial statements and records to comply with accounting standards such as IFRS. It is conducted by approved auditors like Jaxa Chartered Accountants to ensure the accuracy and reliability of financial records. An audit is mandated for businesses exceeding the size limit or revenue threshold under the UAE Corporate Tax Law.
Approved Free Zone auditors
The key free zones in the UAE for which Jaxa is approved for are:
- Registered auditor in Khalifa Industrial Zone Abu Dhabi
- Registered auditor in Masdar City Free Zone
- Registered auditor in Abu Dhabi Airport Free Zone
- Registered auditor in Twofour 54 Abu Dhabi
- Registered auditor in Dubai Multi Commodities Centre (DMCC)
- Registered auditor in Jebel Ali Free Zone (JAFZA)
- Registered auditor in Dubai Airport Free Zone (DAFZA)
- Registered auditor in Sharjah Airport International Free Zone (SAIF Zone)
- Registered auditor in Ras Al Khaimah Economic Zone (RAKEZ)
Our auditors in Freezone provide timely financial audits while complying with UAE free zone regulations and various benefits including 100% compliance in all free zones in Abu Dhabi UAE.
Free Zone Audit Requirements in the Abu Dhabi Free Zone
The audit is mandatory for Free zones in Abu Dhabi, UAE exceeding a certain threshold or size. An audited financial statement is required for the seamless trade license renewal process within a free zone authority. The financial audit statement must be submitted to the free zone authorities annually. Free zone companies can choose their financial year as per their requirement. Thus, the chosen financial year must start with the incorporation date and duration ranging from at least 6 months to a maximum of 18 months.
Are you looking to benefit from 0% corporate tax in the Abu Dhabi Free Zone?
If yes, to qualify a business as a free person- a mandatory financial audit is a must. It is best to choose the best free zone audit service provider across Abu Dhabi, and Dubai.
Jaxa, Abu Dhabi is an accredited audit firm that conducts audits in every free zone entity across Abu Dhabi.
Worried about the Penalties for missing audit submissions in the Abu Dhabi Free Zone! Here is what you need to know
In Abu Dhabi free zones such as Masdar City, and ADAFZ, an audited financial statement should be submitted within 90 days to 120 days after the end of the financial year. A penalty of AED 5,000 will be levied for non-submission submission of the financial audit statement every month till the audited financial report is pending.
Confused about the right audit firm for free zone companies in Abu Dhabi?
Jaxa Abhu Dhabi is a renowned accounting and auditing firm in Dubai. We have hands-on experience in seamless financial audit compliance, which helps to avoid unnecessary penalties with our expert guidance.
Why Jaxa?
Jaxa is a recognized and certified auditing firm in Abu Dhabi, UAE. Certified by multiple Free Zone in Abu Dhabi, our experienced team conducts audits following the accounting standards – IFRS to ensure compliance with the Free Zone authority. Our team streamlines the entire process of offering up-to-mark audited financial statements in the Free Zone in accordance with the Free Zone regulations in Abu Dhabi. It is paramount to seek the support of our accounting and auditing services in the Abu Dhabi Free Zone.
If you are looking for a trusted auditing partner in Abu Dhabi, choose Jaxa for conducting a meticulous audit with penalty-free audit submission.
Contact us now for hassle-free auditing services in the Abu Dhabi Free Zone.
