- October 12, 2022
- Posted by: Vimal Hemachandran
- Category: Blog
In order to avoid hefty fines from the UAE government, company owners in Dubai must fulfill a number of requirements. One of them is submitting financial audit reports to the appropriate authority, particularly if your business is DDA-registered in Dubai. You must submit your audit reports to the authorities by the deadline, which has been extended to November 30, 2022.
All organizations (free zone limited liability companies and branch offices) that are authorized under the authority of the Dubai Development Authority (DDA) must submit their most recent audited financial statements and annual return in accordance with the DDA Private Companies Regulations 2016 Circular 421. Regulations 63–68 of the Private Companies Regulations of 2016 define the guidelines for the Audited Financial Statement for an FZLLC. These submissions must be made by entities using their individual AXS portal accounts.
Dubai Development Authority: An Overview
The formation of the Dubai Development Authority (DDA), previously known as DCCA, was a component of Dubai’s attempts to expand its economy. The organisation seeks to enhance future prosperity and benchmarks by offering a vibrant and appealing corporate environment that promotes development. Additionally, it offers a wide array of tactical services and holistic urban development.
An audit report is a set of financial statements created by auditors or accountants certified in the audit’s jurisdiction. Each licensee is required to create and keep a report on the audit. Additionally, a licensee is required to give it at the authority’s request. Each licensee is required to create and keep a report on the audit. Additionally, a Licensee is required to give it at the Authority’s request.
In compliance with DDA’s most recent ruling, By November 30, 2022, companies from the free zones which comprise of Dubai Internet City, Dubai Media City, Dubai Industrial City, Dubai Knowledge Park, Dubai International Academic City, Dubai Production City, Dubai Outsource City, Dubai Studio City, Dubai Science Park, Dubai Design District, and Dubai Quarters must submit their most recent audited financial accounts.
Upkeep of accounting records, drafting of financial statements, and auditor selection (Regulation 63 – 68)
It is required to keep accounting records for at least eight (8) years.
An auditor must be chosen by the company’s members to review its financial accounts
Every company must have books of accounts that follow generally accepted accounting Principles (GAAP), and the documents must be retained at the company’s registered office.
The directors are responsible for making sure that financial statements are generated in each of the company’s fiscal years.
In respect to tax rules, economic substance laws, anti-money laundering legislation, and laws aimed at preventing the financing of terrorism, this guideline seeks to ensure compliance. A branch office has the option of submitting the parent company’s consolidated audited financial statement or a separate extract of financial data that just pertains to the activities of the branch office.
The Authority will closely watch the filing of the Audited Financial Statement, and in the event of non-compliance, the authority may, in its absolute discretion, decide to enforce Decision No. (2) of 2017.
Aon Management Consultants to assist!
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Professionals dedicated to the highest ethical standards oversee our services. We collaborate with clients to comprehend the fundamental operations, solve pressing concerns, and suggest solutions to strengthen control, lessen the risk of forgery, and reassure stakeholders of the correctness of the accounting.