Accounting in the UAE

Maintaining accounting records is a legal requirement for all companies registered in the UAE. Violations can result in hefty fines. Transparent accounting of financial transactions is an essential part of managing a company's financial activities. It provides an objective picture of the business's state, its obligations, and assets. The goal of Dynasty Business Adviser is not only to assist foreign investors with company formation in the Emirates but also to provide ongoing support for successful business development. If you want to establish accounting in the UAE, you can always consult with our company's specialists or avail our full accounting outsourcing services.
Accounting in the UAE
Our advantages
Work experience
For more than 8 years, Dynasty Business Adviser has been successfully introducing new players to the UAE business market. Our employees' qualifications in international law and practical experience in solving the most complex problems allow our team to develop effective schemes for clients to start activities in the Emirates successfully.
From the moment of acquaintance until the end of cooperation, all tasks set by the client are solved quickly. We are available 24/7 and promptly attend meetings. Time is money, so our team acts professionally and harmoniously, achieving the desired result quickly.
We plan and organize future activities considering the specifics of local legislation. We also handle all the formalities: company registration, legalizing documents, obtaining tax certificates and licenses, opening bank accounts, and accounting support. Your UAE business will work like a Swiss watch.
No intermediaries
Having its own office in Dubai allows Dynasty Business Adviser to work directly with clients. We do not transfer cases into the hands of intermediaries but independently represent your interests in government and commercial structures so we can guarantee the efficiency of our work and the achievement of our goals.
Complete anonymity is one of the guarantees for the safe start and operation of the client’s business. That is why we pay attention to non-disclosing confidential information to third parties. Our goal is successful cooperation and an invaluable contribution to the impeccable Dynasty Business Adviser reputation.
VIP service
Our activity's main priority is finding ways to achieve clients’ goals. Our professionals will solve any assigned tasks, even if the situation requires a non-standard approach, and will complete the work they have started. With Dynasty Business Adviser, your business has every chance of success in the UAE.

Maintaining Accounting Records in the UAE

In accordance with the legislation of the Emirates, all legal entities registered on the mainland and in free economic zones must keep accounting and tax records from the first day after registration, conduct an annual external audit of financial activities, and submit financial statements. The first report is submitted no later than 18 months, and all subsequent ones annually.

The mandatory requirement for systematic accounting in Dubai and other emirates and conducting an annual audit emerged after the introduction of VAT. With the introduction of corporate income tax from June 1, 2023, the submission of tax returns in the UAE and the provision of declarations became mandatory.

In accordance with Resolution No. 36 of 2017 of the Cabinet of Ministers and Federal Law “On Tax Procedures” (No. 7 of 2017), books, invoices, and other reporting forms should include:

  • Accounting balance sheet and profit and loss statement.
  • Records of fixed assets.
  • Accounting for salaries and wages, income received, and expenses incurred in the course of business activities.
  • Records of all inventories and inventory cards.

Article 26 of the Federal Law “On Commercial Companies” (No. 2 of 2015) provides for:

  • Mandatory storage of accounting books, checks, and invoices for at least 5 years after the end of the reporting period.
  • Accounting in accordance with international financial reporting standards (IFRS).
  • The possibility of storing electronic copies of all accounting documents.

For tax purposes, trading, service, and industrial companies must keep accounting records for at least 7 years after the end of the reporting period, and real estate firms for at least 15 years, as regulated by the VAT law.

Experts in the field of accounting at Dynasty Business Adviser will help you understand the rules for organizing and maintaining accounting records in the UAE and, if necessary, take over the accounting services for your business.

Tax Accounting in the UAE

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Tax accounting is part of accounting and involves control over income and expenses to determine net profit. The need for its conduct arose with the introduction of VAT and corporate income tax, as these taxes have a taxable base of 375,000 dirhams. Income below this threshold is taxed at a rate of 0%, while any amount exceeding the taxable minimum will be subject to 5% VAT and 9% corporate income tax. Companies may be exempt from paying this tax if they engage in qualified activities and meet certain conditions, at the discretion of the Federal Tax Authority.

Additionally, this accounting is conducted when preparing tax reporting — all offshore companies that are residents of the country are required to submit them in the UAE. Proper tax accounting will help avoid losses from paying fines, so it is better to entrust such work to professionals from Dynasty Business Adviser. We will help you register for tax accounting and take on outsourcing the following activities:

  • Control over the income and expenses of your business.
  • Submission of tax returns.
  • Correct and timely payment of taxes.

Tax registration in the UAE is directly related to the turnover of goods subject to VAT, which is strictly regulated by the state. There are two types of registration:

  • Voluntary registration: Registering with the Federal Tax Authority is possible with a turnover of over 183,000 dirhams. In this case, the tax rate is zero, but reporting to the FTA is required, which is done in the following periods:
    • Quarterly.
    • Monthly for a large number of transactions through a bank account.
  • Mandatory registration: Mandatory registration is required for turnovers exceeding 375,000 dirhams. Taxpayers have the obligation to:
    • Pay taxes and submit tax returns within the specified timeframe.
    • Provide customers with tax invoices for services rendered.

In some cases, registration with the FTA may be required from the first day of a company’s operations if certain government agencies and counterparties require a tax registration number (TRN).

Even companies not registered as taxpayers must maintain tax records in the Emirates in case their activities are audited by the Federal Tax Authority.

Financial Reporting in the UAE

According to Federal Law No. 32 of 2021 “On Companies,” annual audits and submission of financial reporting in Dubai and other emirates of the UAE are mandatory for:

  • Private and public joint-stock companies, as well as local limited liability companies (LLCs) registered on the mainland.
  • Companies of various legal forms in some free zones.

In some free zones, the submission of financial audits is a mandatory requirement, while in others, only the preparation of audited financial statements is required without mandatory submission. In any case, all documents must be kept for at least 5 years and presented upon request by regulatory authorities.

Experts from Dynasty Business Adviser will assist with the preparation and submission of your company’s financial statements and will select an accredited auditing firm, as auditing in the UAE must be external and cannot be conducted by a company engaged in accounting.

Requirements for Economic Presence in the UAE

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Accounting in Dubai and other emirates is also necessary to confirm Economic Substance Requirements (ESR) in the UAE. Alongside the mandatory declaration filing, submitting an ESR report is an OECD (Organization for Economic Cooperation and Development) requirement as part of the action plan to combat erosion of the tax base.

In accordance with Resolution No. 31 of 2019 by the UAE Cabinet, companies engaged in the following activities are required to confirm substantial economic presence:

  • Provision of banking services.
  • Insurance.;
  • Operation of distribution and service centers.
  • Intellectual property business.
  • Management of investment funds.
  • Shipping business.
  • Financial leasing.
  • Holding company management.
  • Operation of the headquarters of a group of companies.

The deadline for submitting the ESR report is 12 months after the end of the financial year, and failure to comply with this condition may result in penalties, notification to the competent authorities of the investor’s home country, license cancellation, or refusal to renew it.

Advantages of Outsourcing Accounting in Dubai and the UAE to Dynasty Business Adviser

The main benefits of outsourcing accounting services for foreign businesses in the UAE by our company include:

  • Involvement of highly qualified specialists with extensive experience in accounting in the UAE, in the emirates of Dubai, Abu Dhabi, Sharjah, Fujairah, and others. A Dynasty Business Adviser accountant in Dubai possesses deep knowledge of financial and tax reporting requirements and keeps track of legislative changes in this area.
  • Comprehensive accounting support in the UAE, in accordance with the law, and providing the client with objective information and analytics on the financial condition of the business, which will help make informed and effective management decisions.
  • High degree of confidentiality due to document storage on our own server.
  • Individual approach — our specialists will find the best solution for any business.
  • Cost savings for the client company on maintaining its own accounting department.

By ordering accounting services for your business outsourcing with our company, you not only get quality and transparent accounting of its financial activities in accordance with the current legislation of the UAE but also ensure timely and correct tax payments, as well as easily confirm substantial economic presence in the country.

What’s Included in Our Accounting Services

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Our accounting services in the UAE provided by Dynasty Business Adviser include:

  • Accounting consultation on record-keeping, preparation, and submission of financial and tax reports.
  • Accounting services remotely or at your office.
  • Verification of your accounting records compliance with international financial reporting standards.
  • Coordination of audits and, if necessary, engagement of authorized external auditors.
  • Company registration with the Federal Tax Authority, obtaining a Tax Registration Number (TRN).
  • Preparation and submission of ESR reports.
  • Handling one-tome tasks such as registration in the Wage Protection System, salary payments through authorized banks, reconciliation of bank transactions with invoices, and other individual client requests.

In our company, you can order a package of services for accounting and tax reporting outsourcing. A bundled solution will cost less than ordering the same services separately.

Stages of Cooperation for Bookkeeping and Tax Accounting

To order accounting support in the UAE from us, you need to:

  1. Contact us and discuss all the details of the upcoming cooperation.
  2. Enter into a contract specifying the list of services you want to receive and the cost of the work.
  3. Provide us with the necessary financial documents according to the checklist or grant access to them at your enterprise.

Upon receipt of the documents, our specialists will start providing accounting services for your company.

Cost of Our Accounting Services

The cost of accounting and business support services by Dynasty Business Adviser depends on the list of required services and the number of transactions per month and is determined individually in each case, when drafting, negotiating, and signing the contract. If you want to know the preliminary cost, feel free to contact the managers of our company for consultation!

Who will you communicate with?
Customer Service
We will discuss your request and issue, find the optimal solution, and pass the project to the appropriate specialist. We will provide information about the company's services and introduce you to leading specialists within the company.
After consultation with the customer service manager, the legal consultant conducts a more in-depth analysis of your request and develops project strategy options and preliminary organization of all processes.
Lead Company
Will coordinate with you the strategy and stages of further work and conditions. Will be responsible for coordinating the work of the legal consultant, ensuring the correct implementation of the strategy, providing individual approach, and ensuring compliance of the team's activities with legal norms.
Manages your project within the company, coordinates team activities, and ensures that project goals are achieved on time. Responsible for planning, executing, and monitoring assigned tasks.
Public Relations
Manager (PRO)
Represents your interests in government agencies, including handling company registration and subsequent processes, obtaining additional permits, and accompanying you during visits to government agencies.
Accounting Department
Will communicate directly with you regarding accounting issues, transactions, and necessary documentation. Ensures the correctness and order of your financial flows functioning.
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