The UAE has favourable business environment and soft tax policy. At the same time, audit in Dubai and other emirates is a relevant and highly-demanded service despite nearly full absence of taxes. Audit is not compulsory for some companies in the UAE and can be conducted upon the request of authorities, involved business partners or on a voluntary basis by owners in order to evaluate company efficiency. Other companies have to conduct audit on an annual basis. Companies that require UAE business audit as well as entities that can request it.
There are different onshore and offshore companies in the UAE registered inside or outside of free economic zones. Audit is mandatory in the UAE for the following companies:
- local companies (LLC) registered outside of free economic zones with at least 51% of capital stock owned by a UAE citizen;
- many onshore companies on free economic zones;
- companies owned by foreign citizens and registered in Jebel Ali Offshore free economic zone.
Company branches and subsidiaries are not subject to mandatory audit, but audit report can be requested:
- during renewal of license by free zone authorities;
- by a bank when providing a loan and other services;
- by a court to confirm or refute statements during legal proceedings;
- by a supplier wanting to open a credit line to a company;
- by an investor to evaluate efficiency of future investments.
Company audit in Dubai and other emirates is strictly confidential. Tougher requirements to audit companies were introduced in 2014 in order to improve fairness and accuracy of audit. The government seeks to enhance the quality of auditing as it influences not only a financial state of a specific company but also the state of the whole country’s economy.
Contact Dynasty Business Adviser if you need independent and fair company audit in Dubai or other emirates. Our company is an agent of the leading auditors in the UAE familiar with the country’s legislation.