In the UAE, there are 45 free zones, which are basically Free Trade Zones that are set up with the objective of offering tax concessions and customs duty benefits to expatriate investors. The free zones have laws and facilities that are less complex and extremely investor-friendly.
However, as per rules of the Free Zone Authorities, all organizations must get their financials audited by approved free zone auditors of the zone, to renew their free zone licenses. The Free Zone Audit rule is applicable to all the free zones in the UAE, including Jebel Ali Free Zone (JAFZA), Dubai International Financial Center (DIFC), Dubai Airport Free Zone (DAFZA) and more.
It’s mandatory to conduct financial audits in the free zone, and failure to comply will lead to hefty fines. Additionally, an audit gives you a fair and true view of your financials and about your business standing. If there is any mismanagement, or a lag in internal processes, an audit report highlights the same, helping the management team make better decisions. An audit provides a clear view into the future of the organization as well.
And when an organization needs to renew their business license, presenting the financial report is a must. The standard report should present a yearly view of the business, however, if any organization follows another reporting period – it is feasible, but the report should not be under 6 months or over 18months.
Are you looking for free zone audit services? If your business is in DAFZA, it’s best to go for a DAFZA approved auditors, if you have your business in Dubai Multi Commodities Center (DMCC), then opt for a DMCC approved auditor and so on, since this is a requirement for the free zone registered companies.
Turn your business of dreams to reality with TRC Pamco – which is driven by a highly-experienced team of professionals – focused on taking care of all the procedural documents. They are JAFZA, DAFZA and DMCC Approved Auditors.
