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If you have a company registered in the DMCC Free Zone, it's important to know that you need to prepare and submit audit reports. These reports should be done with the help of DMCC-approved auditors in the UAE. The rules for audits in DMCC companies are outlined in the DMCCA Company Regulations and the UAE Commercial Companies Law.
Having a trade license from DMCC Free Zone, among other Free Zones in Dubai, comes with great benefits. These include 100% foreign ownership, excellent facilities and infrastructure, strategic location, and exemption from import duties. However, it's crucial to comply with the regulations set by the Free Zone authority in order to enjoy these advantages. In this blog, we'll discuss the audit requirements for DMCC Free Zone companies.
Companies operating in the DMCC-Free Zone in the UAE must go through an annual audit of their financial statements, as per the regulations. The DMCC Free Zone authority has established specific rules for business owners, and one of the essential requirements is submitting audited financial statements. This ensures transparency and adherence to the regulations in the DMCC region.
Once the audit statements are submitted to the DMCC Free Zone, they review the financial statements and audit report to ensure compliance with the relevant standards and regulations. It is important to note that these audited financial statements should be provided within 90 days after the end of the fiscal year.
Upon acceptance of the audit report and financial statements, the DMCC issues a certificate of compliance to the company. This certificate serves as confirmation that the company has fulfilled the annual audit requirements and is in line with the DMCC regulations.
1. Company License
2. Shareholders' Passport Copies
3. Lease Agreement or Tenancy Contract
4. Share Certificates
5. Bank Statements
6. Bank Confirmation
7. Trial Balance
8. Memorandum of Association (MoA)
9. Articles of Association (AoA)
10. Updated Trade License
11. VAT and Excise Tax Registration Details
12. Invoices, Bills, and Relevant Documents
13. Accounting Ledgers for Major Accounting Heads
14. List of Customers and Suppliers
15. Management Accounts (if prepared, such as Balance Sheet and Income Statement)
16. Depreciation and Fixed Assets Schedule
Submitting audited financial statements is a crucial and obligatory requirement for companies operating in the DMCC-Free Zone. As per DMCC regulations, member companies must have their financial statements audited in order to renew their trade licenses.
All DMCC companies, including agencies and branch offices, are obligated to provide audited financial statements. To fulfill this requirement, these companies have the option to engage professional and capable audit firms that can assist in conducting the necessary audits of their financial statements.
According to DMCC guidelines, if you have a company registered in the DMCC Free Zone, you need to hand in your audited financial statements within 180 days after the end of the financial year. You can easily submit your financial reports and summary sheets using the member Portal of DMCC. Approved auditors in DMCC can offer the expertise you need for a smooth and successful audit experience.
Failure to provide the required audited financial statements would be considered a violation of the rules, resulting in the DMCC Authority refusing to renew your trade license. To understand the potential consequences of not submitting the audited financial statements to the Free Zone authority on time, it is advisable to seek guidance from DMCC-approved auditors who can provide you with detailed information.
If you want a hassle-free DMCC audit report submission, it will be best to seek help from DMCC-listed auditors in UAE. With the services of DMCC-approved auditors, you can ensure compliance with DMCC regulations and meet the requirements for submitting your audit report to the DMCC Authority. Registered auditors in DMCC like Reyson Badger can help you with this. Being one of the leading DMCC auditors, we can provide valuable guidance and support throughout the audit process.