The United Arab Emirates is an attractive place to setup business as the country offers everything that a budding entrepreneur of company can ask for. The strategic location, less or no tax implication, caring and understanding government and the presence of one of the biggest and emerging markets are only some of the reasons which lure individuals and companies from all around the world.
There is also very significant factor which plays a very big role in attracting the companies which is the availability of free zones. These free zones offer a lot of benefits and help in boosting the international business.
In this blog we will be talking about the Dubai Silicon Oasis and the need of audit in the mentioned free zone.
The Dubai Silicon Oasis or DSO was established in the year 2004 by the Government of Dubai with the aim to promote technology based companies in the GCC countries and middle east. The establishment of the Dubai Silicon Oasis was a global collaboration and offers state of the art infrastructure for offices as well as residential areas with all the required amenities.
This free zone is spread across 7.2 square kilometres and is reputed for the innovation and the development in the field of technology and electronics especially optoelectronic technology, nanotechnology and photovoltaic technology.
With a strategic location in Dubai, the free zone can be accessed by all the modes of transport be it air, water or land. With a close proximity to Dubai’s International Airport, it is very easy for the individuals and companies in the free zone can go to any place in the world. The access to the Jebel Ali Port and Port Rashid will allow easy transportation of both raw materials and finished goods. Dubai Silicon Oasis also has a web of sturdy roads which interlink every important point in the country.
Advantages Offered to DSO Clients
The free zone offers many benefits to the companies which have been registered in the free zone. Some of the benefits have been mentioned below:
- State of the art infrastructure and the latest technology for the IT Sector
- Simplified business support services with a presence of an online business system
- Easy availability to business setup licenses and other necessary services
- Easy access to consumer market of 1.5 billion people (markets of three continents)
- 100% foreign ownership and repatriation of capital and profits
- No Income or Corporate Tax
- Easy availability of labour and technical professionals
- Incentives on investment according to the regulations set by the Dubai Silicon Oasis Authority (DSOA)
There are many other benefits available to a client of the DSO which makes it one of the most lucrative free zones for setting up a company especially one which deals with the technological sector.
Requirement of an External Audit in DSO
An audit will help to understand the current working of the business and will also allow the management to figure out how can they tweak the various process which will suit the business in a better way. This is the reason why the DSOA requires all the companies in the free zone to submit their financial statements which are then audited by an audit firm approved by the DSO. These financial statements need to be submitted within four months of the ending of the financial year. This external audit will also allow the companies to renew the business license.
One of the main reasons having an external audit in DSO is that the audit will provide assurance to the management of the free zone that the companies which are registered in the free zone are compliant to the rules and regulations as set by the management. The audit report procured from an approved audit firm will also help in the continuance of the business and will also allow the management of the company to streamline the various processes of the company.
In the year 2014, the laws relating to the approved auditors were revised and as a result the various pre requisites for an auditor and specifically a registered DSO auditor gradually became more stringent. They now needed to perform to tasks which were:
- The Audit firms now had to present proof to the employees that they will receive various opportunities so that they can participate in the various training and development programme
- It is necessary for all the companies availing the services of an auditor to ensure the independence of the external auditors. This can be done by rotating the auditors every four years.
All in all, we can say that by availing the services of an audit, a company can benefit greatly as it will help the company learn from their mistakes and make amends. If you are in need of an accounting firm in the Dubai Silicon Oasis then fear not, JAXA Chartered Accountants will not only help you understand the situation of the business but will also provide other services so that the company can reach great success. To know more about the services provided by us, do contact us, we will be happy to help you.