Companies registered in DMCC Freezone must prepare & submit audit reports using the required documents with the help of DMCC approved auditors in the UAE. The audit regulations for DMCC companies are set out in the DMCCA Company Regulations and the UAE Commercial Companies Law. BMS auditing is a DMCC-approved auditing company in the UAE that helps you understand the audit requirements in the free zone and comply with the commercial law of the UAE.
Trade licenses from various free zones in Dubai, especially DMCC Free Zone, have significant benefits such as 100% foreign ownership, attractive facilities and infrastructure, effective location, exemption from import duties, etc. However, it is necessary to ensure that you comply with the rules set by the free zone authority so you get these advantages.
In this session, we discuss the audit requirements for companies in the free zone region of DMCC.
Audit and its Requirements in DMCC Freezone in UAE
As per the regulations in the UAE, companies operating in the DMCC free zone are required to undergo an annual audit of their financial statements. The DMCC (Dubai Multi Commodities Centre) free zone authority includes a series of regulations set for business owners, and submitting audited financial statements is an inevitable requirement for companies in the DMCC region.
After submitting audit statements to DMCC (Dubai Multi Commodities Centre) free zone, the DMCC will review the financial statements and audit report to ensure that they comply with the relevant regulations and standards.
DMCC mandates that the audited financial statements be delivered within 90 days of the end of the fiscal year.
If the audit report and financial statements are accepted, the DMCC will issue a certificate of compliance to the company. This certificate of compliance confirms that the company has completed the annual audit requirements and is in compliance with the DMCC regulations.
Documents required to conduct an Audit in DMCC
During the audit, BMS, a DMCC-acclaimed auditor requests the management for relevant documents. You need to gather the following documents during an audit,
- The license of the Company
- Passport copies of Shareholders
- Lease Agreement / Tenancy Contract
- Share Certificates
- Bank statements
- Bank confirmation
- Trial Balance
- Memorandum of Association (MoA)
- Articles of Association (AoA)
- Updated trade license
- VAT and Excise tax registration details
- Documents of invoices, bills, etc.
- Accounting ledgers of major accounting heads
- List of customers and suppliers
- Management Accounts (if prepared such as balance sheet and income statement)
- Depreciation and fixed assets schedule
Importance of submitting the audited financial statements to DMCC
It is essential and mandatory for companies in the DMCC free zone to get their financial statements audited on time. According to the DMCC regulations, a member company in DMCC must submit the audited financial statements which are required to renew trade licenses.
Every DMCC company including agencies and branch offices must submit audited financial statements. These companies can appoint experienced and efficient audit firms who could assist in getting the financial statements audited.
BMS is one of the leading audit service providers who efficiently assist you with submitting audit reports on time.
Deadline to submit Audit statements in DMCC
As per the DMCC guidelines, a registered company with the DMCC free zone must submit its audited financial statements within 180 days after the end of each financial year. You can submit your financial reports and summary sheets through the member Portal of DMCC.
Why Audit is Necessary for DMCC?
The audit report assures the Authority of the preparation of financial statements according to local and international accounting standards such as the IFRS. The DMCC member companies should get the books of accounts audited by the approved auditors for the following benefits:
- Being compliant with the DMCC regulations
- Renewal of trade license
- Understanding the financial position of the company
- More confidence from stakeholders
- Enhanced internal controls and process
- Increase the reliability of banks, government, and prospective investors
- Detect fraudulent activities
- Obtain free zone premiums and exemptions as per the UAE Corporate Tax Law
What happens if you fail to perform an audit in DMCC?
If you fail to present the audited financial statements, it would be considered a compliance failure. As a result, the DMCC Authority would not renew the trade license.
The DMCC-approved auditors provide you with more information on the consequences of not presenting the audited financial statements to the free zone authority on time. BMS ensures the preparation of financial statements as per the IFRS.
DMCC Audit Services by Approved Auditors
BMS has been providing world-class audit services one of the top auditors approved by DMCC who help you with the submission of audited financial statements. BMS has experienced auditors who ensure that you submit the financial statements to stay compliant with the DMCC regulations and thus get your trade license renewed.
For more queries on audit requirements in DMCC free zone, call BMS Auditing UAE.
