There are many reasons due to which a businessman would like to establish its business in the United Arab Emirates. The reasons include strategic location, less or no tax implication, caring and understanding government and the presence of one of the biggest and emerging markets. The government of the country are also working to make the establishment of a business in the country more easy and the government aims to provide all the necessary services which a businessman can hope to be present.
The presence of free zones is a major factor due to which the companies from all around the world choose UAE as the business destination for the establishment of their company. The free zones provide various benefits to business and help in boosting international businesses.
In this blog, we will be talking about the Dubai Silicon Oasis and the need for audit in the mentioned free zone.
Dubai Silicon Oasis (DSO)
Established in the year 2004, the Dubai Silicon Oasis or DSO was established 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 the free zone offers state of the art infrastructure for offices. The free zone also offers residential space with all the required amenities.
This free zone is spread across 7.2 square kilometres and is reputed for innovation and 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 close proximity to Dubai’s International Airport, it is very easy for the individuals and companies in the free zone can access 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 that interlink every important point in the country.
Advantages of setting up a company in DSO
The free zone offers various benefits to the companies which have been registered in the free zone. Some of the benefits have been mentioned below:
- The free zone provides state of the art infrastructure and the latest technology for the IT Sector
- The free zone comprises of simplified business support services with a presence of an online business system
- Easy availability to business setup licenses and other necessary services in the free zone
- Easy access to a 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 in the Free Zone
- Easy availability of labour and technical professionals in DSO
- Incentives on investment according to the regulations set by the Dubai Silicon Oasis Authority (DSOA)
These are some of the many benefits available to a business if it becomes a client of the DSO. These benefits make it as 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 External Audit will help the management to understand the current working of the business and will also allow them to figure out how can they tweak the various process which will suit the business in a better way. The DSOA has made it mandatory for 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. The external audit will also allow the companies to renew their business license.
One of the main reasons for 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 with 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 prerequisites 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.