A Dubai limited liability company is required to prepare the annual financial statements under IFRS (International Financial Reporting Standards). In agreement with IFRS, holding enterprises are demanded to prepare and organize enhanced audited financial statements each year. Consolidation is not mandatory if the business is a transitional holding company. A holding company will prepare the consolidated financial statements under the official accounting criteria. Our accountants in Dubai can offer proper information and assistance if you need to prepare for the annual financial statements in Dubai.
It is mandatory for free zone businesses in the UAE to prepare the annual financial statements in agreement with the International Financial Reporting Standards. All other companies or partnerships limited by shares in the UAE, subject to any other obligations, have the possibility to prepare their financial statements in accordance with any normally excepted structure, but most of the units do follow IFRS. Subsidiary corporations of listed companies that are registered in other territories have the possibility to prepare the financial statements in agreement with the structure followed by the parent company.
In the UAE, the following types of companies must have an audit at any time in the financial year if they are:
Small companies in Dubai are audited when they are required to do so by any supervisory unit or financial institution or to meet any other special condition.
The general reason for an audit is to create an independent and impartial view on the information offered in the financial statements, whether that information reveals the true and fair interpretation of the operations of that business or not. For example, the auditors will prove and give their opinion on whether the reported incomes, payments, profit/loss, possessions, obligations, and equity are specified at their true and fair standards or if there is any material misstatement.
Are you opening a firm and need an audit company in Dubai? We advise you to contact our specialists with experience in this important area. You will benefit from such complete financial reports that reveal the financial situation of the company you own. You will also receive information about the potential risks that may appear at a given time. In addition, the managers or directors of the company are the ones who will receive such financial reports.
The VAT tax rate of 5% was introduced in 2018 in the UAE and since then, companies had to pay attention to a series of new regulations involved, such as filling the VAT returns. However, if your company is not subject to VAT registration, the obligation of preparing the annual financial statements must be considered. This means that an audited report comprising all payroll calculations, income statements, financial adjustments, and other related information will be part of the annual financial statements. One of our accountants in Dubai can provide complete support when preparing the annual financial statements for your company in Dubai. We remind that if you think of outsourcing the accounting services for your business established in Dubai, you can hire our accounting firm in Dubai and let us take care of such aspects for your firm.
For the general purpose of the annual financial statements, a set of reports must be issued, and these must comprise the balance sheet, the statement of retained earnings, cash flows, and income statement. Here is additional information:
The above-mentioned reports are normally presented with other financial notes and analyses for a specific accounting period and are part of the annual financial statements for companies in Dubai. If you would like to know more about this kind of report, feel free to talk to one of our accountants in Dubai. Our experts can provide complete support and guidance for all sorts of financial matters for your company in Dubai.
The fiscal year represents a period of 12 months in which a full accounting cycle takes place in a company. However, the fiscal year is not meant to be the same as the calendar year, but in the case of the UAE, this starts on January 1st and ends on the 31st of December. The preparation of the annual financial statements for companies in Dubai can start before the fiscal year is over, leaving time for different adjustments and modifications.
If you would like to benefit from complete accounting services for your business in Dubai, you should solicit the support of our accounting firm in Dubai. The main purpose is to provide the type of services a company needs, relying on the experience of a professional team of accountants. Bookkeeping, payroll, audits in Dubai, annual financial statements, tax consultancy, plus additional accounting services can be offered for your business in Dubai, regardless of the size of your company. Even though the UAE offers a great tax system, it is recommended to have a complete idea about the accounting aspects of your business, and this is were our experienced accountants in Dubai can help.
Dubai is for many years an important and well-developed financial sector in the Middle East and the choice of international entrepreneurs who benefit from a generous business climate and a multitude of possibilities. The tourism sector, ITC, automotive, engineering, financial services, research & development are only a few of the significant fields in which foreign investments are directed. Here are some facts and figures about the UAE that you might find interesting:
Please feel free to contact our audit firms in Dubai, if you need to prepare the annual financial statements in Dubai, or if you need accounting services in Dubai.