Obtaining a trade license from Dubai’s free zones grants you access to world-class facilities and infrastructure, strategic location, exemption from import duties, and, most importantly, one-stop services. However, in order to reap the benefits, you must also ensure compliance with the free zone authority’s regulations. In addition, the Dubai Multi Commodities Centre (DMCC) free zone authority has established a number of rules for business owners. One of these rules mandates that VAT DMCC member companies submit audited financial statements.

If you want to learn more about the audit requirements in the free zone, you can talk to auditors in Dubai who have been approved by the DMCC. To learn more about the audit requirements for businesses registered with the DMCC free zone, continue reading:

Is submitting the audited financial statements to Dmcc a requirement?

The DMCC free zone requires all registered businesses to have their financial statements audited on a regular basis. A company that is a member of the DMCC is required to submit audited financial statements in accordance with the DMCC implementing regulations. Their trade licenses must be renewed by submitting audited financial statements.

All DMCC companies, including subsidiaries and branch companies, are required to submit audited financial statements. To have their financial statements audited, DMCC businesses can hire Dubai’s best auditing firms.

When to Present the Reviewed Budget summaries to the Dmcc Authority?

A company registered with the free zone must submit its audited financial statements within 180 days of the end of each fiscal year, according to DMCC regulations. You can get assistance with the audit report submission process from Dubai-based audit service providers.

Is It Requirement-Based to Employ DMCC-Approved Auditors for the Audit?

On January 12, 2017, the DMCC issued Approved Auditors Rules (AAR). In accordance with the AAR, each member company of the DMCC is required to verify that the appointed auditor is listed as an approved auditor in the DMCC. Additionally, the auditor must be included on the DMCC Approved Auditors List (AAL). In any case, these guidelines are not pertinent to an organization enrolled in DMCC as a branch organization given that the organization has a gathering reviewer.

When should the DMCC Authority receive the audited financial statements?

A company registered with the DMCC Authority is required to submit an online service request on the member portal for the upload of the auditor’s signed and stamped Audited Financial Statements Summary Sheet and Audited Financial Statements Report. To get a better understanding of the procedure, speak with the best Dubai audit firms.

What Records Are Required for an Audit of a Business?

The DMCC Auditors may request specific documents from management during an audit. These documents make it easier for the auditor to make an assessment of the company’s financial situation. You really want to give the accompanying reports during a review:

Statements of deposits from the DMCC portal Memorandum of Association (MoA) Articles of Association (AOA) Latest trade license Registration Details for VAT and excise tax Bank statements Credit/debit confirmation slips for all financial transactions Copies of bills and invoices

The Authority will be reassured by the auditor’s report that the company’s financial statements were prepared in accordance with local and international standards like IFRS. For the following reasons and benefits, businesses must have their books of accounts audited by DMCC-approved auditors:

To comply with DMCC regulations, to renew their trade license, to learn more about the company’s financial situation, to gain shareholder trust, to improve internal controls and procedures, to gain credibility with banks, the government, and potential investors, to catch fraud, and to take advantage of any free zone incentives and exemptions provided by the UAE Corporate Tax Law. What Happens if You Do Not Conduct an Audit in DMCC?

A failure to comply will be deemed if the audited financial statements are not submitted. If you do not submit audited financial statements to the DMCC Authority, your trade license will not be renewed. For additional information regarding the consequences of failing to submit audited financial statements, consult DMCC-approved auditors.

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