How Does Audit Work in the SAIF Zone in Dubai?
Sharjah International Airport Free Zone (SAIF) is a dynamic Free Zone. It provides a workable business arena for all types of businesses. SAIF supports trade operations by providing easy access to seaports, airports, and warehouses.
There are many top audit firms in Dubai that are incorporated under SAIF Zone Authority. Auditing is compulsory for all members of companies of the SAIF Zone. For auditing to be conducted, every member company must hire only an approved auditor in Dubai. Approved auditor means an auditor who is registered and listed as an approved auditor in SAIF Free Zone.
Difference between free zone and Mainland
The major difference between Mainland and Free Zone companies is simple. Free zone companies can’t do business outside the free zone without the support of a local agent. This constraint does not apply to mainland companies that have the approval to operate everywhere in Dubai.
Importance of SAIF zone
SAIF is recognized internationally as the world’s number 1 free zone. Dubai Multi Commodities Centre DMCC has also been the main contributor to the development of trade and commerce in the UAE. It makes an idyllic industry penetrate and start audit firms in Dubai.
Why is audit Compulsory in SAIF zone?
Auditing is compulsory for the firms to get their Trade License renewed. The SAIF Zone authority mandates that the auditing should be performed by registered auditors. The businesses need to follow the annual audit obligation. Because auditing services in Dubai helps to prevent the occurrences of any financial variances.
How do firms organize and maintain accounting records for auditing in the SAIF zone?
It is compulsory for all the companies working in the SAIF Zone to maintain the books of accounts. Because it defines the financial audit position of the firm. With maintained books of accounts, the directors can ensure that the balance sheet and profit and loss accounts are prepared according to International Financial Reporting Standards (IFRS).
The files of accounts need to have a record of;
- Daily entries of all sums of money expended and received
- Liabilities and assets of the firm
- Matters that required the receipt and expenses
As per the rules, the accounts must be kept at the registered office of the firm within the SAIF Zone. The investors of the firm should have access to the accounting records to inspect them at any time. The first financial year can be decided by the firms operating in the SAIF Zone. It depends on the date of incorporation as declared on the License of Incorporation.
Requirements To Submit An Audit Report To SAIF Zone Authority
As per the association of SAIF zone companies;
- The financial audit report must be submitted to the SAIF zone authority within 90 days from the end of the year.
- The audit report must be submitted to the authority along with the signed audited financial accounts
- If the firm fails to submit the financial audit report within time, it will face legal penalties. It includes the non-renewal of trade licenses in the SAIF Zone.
To avoid any legal consequences, it is significant that firms hire audit firms listed with the SAIF zone authority.
Documents Required By SAIF Zone To Conduct An Audit
Every audit firm in Dubai or SAIF Zone should keep proper books of accounts. These reports should be provided to the SAIF Zone Approved Auditors in UAE for conducting Auditing. Documents required by SAIF Zone to conduct an audit are:
- Articles of Association (AOA)
- Trial balance, financial statement, and relevant reports.
- Documents of transactions such as invoices, bills, contracts, etc.
- Memorandum of Association (MOA)
- Schedules of audit
- Copy of Trade license
- Books of accounts
- Closing stock details
- Document of Incorporation
Any other document, as and when required. The auditor’s list with the SAIF Zone needs to check the books of accounts of the company according to local and international rules.
Benefits of Auditing in the SAIF zone
The tremendous benefits of Auditing in the SAIF zone are;
- Get in progress rapidly with a 24-hour licensing service.
- A well-located zone with easy access to airports, cargo, and seaports
- Share capital is not essential to be paid up
- 100% return of all capital and profits including 100% free transmission of funds
- No personal or corporate income tax
- 100% foreign possession allowing you to own your business entirely
- Fast and reasonably priced licensing
- A wide range of services can be found here for all business types. Like, as manufacturing units, warehouses, single offices, industrial plots, etc.
Audit Services in The SAIF Zone
SAIF zone supervised by a local free zone authority. This authority comes up with several rules and regulations. These rules need to be followed by all the companies which are listed in the free zone. In the SAIF Free zone, all companies must conduct a financial audit by a SAIF-approved Auditor.
Farahat and Co is recognized as one of the top audit firms in Dubai. Our auditors will verify the books of accounts and other documents to express a true opinion of the company’s financial statements. Farahat and Co have years of experience in supporting many clients in complying with the free zone rules. This lets them achieve goals and enhance trade growth.
