DMCC mandates that all registered companies must submit their audited financial statements every year to ensure compliance and maintain financial transparency. If you have a company registered in DMCC, it is important to prepare and submit the audit report before the deadline and that too by a DMCC approved auditor in Dubai. Timely audits are essential for maintaining financial transparency, ensuring compliance with regulatory standards, and providing investors and stakeholders with accurate financial information. This blog clearly pictures the deadline for audit submission, why DMCC Approved Auditors, and the requirements for DMCC Audit.
Don’t miss the DMCC Audit Deadline!
All the companies registered under DMCC must prepare and submit their audited financial accounts within six months after the end of the financial year of the Company. The DMCC Audit deadline is June 30, 2025.
Audit Requirements for Companies in DMCC Free Zone
The following are the documents required to start a DMCC Audit:
- Trade License copy
- Tenancy contract or Lease agreement
- Share certificates
- Shareholders’ Passport Copies
- Bank statements
- Memorandum of Association (MOA)Â
- Articles of Association
- VAT and Excise Tax Registration Details
- Invoices, Bills and Relevant Documents
- Accounting ledgers for major accounting heads
- List of Customers and Suppliers
- Management Accounts
- VAT certificate – if applicable
- Corporate tax certificate
- Depreciation and Fixed Assets Schedule
Penalties for Missed DMCC Audit Deadlines
Adhering to DMCC Audit Deadline is mandatory or it will incur heavy fines. Here are the fines:
- 25+Days Late: $2700 Penalty
- 90+Days Late: $5400 penalty
The DMCC Audit Process
The DMCC Audit involves the following steps:
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Preparation of Financial Statements:
Before the audit begins, companies need to ensure that their financial statements are in order. Companies must maintain accurate records along with supporting documents.
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Disclosure of Information to Stakeholders
Shareholder’s must be given copies of audited financial statements and audit report.
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Appointment of Auditor
The company must appoint a third party auditor for audit of the accounts, and must be a DMCC Approved Auditor, as the audit report must align with the standards and regulations set by the DMCC and IFRS.
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Submission of Audit Report
The audit report must be prepared in accordance with the IFRS Standards. The report must depict the actual profit or loss for the financial year.
Hiring an Approved Auditor in DMCC
Choosing an Approved Auditor in DMCC is not just a formality, it is a critical requirement. Hiring an approved auditor ensures that your financial statements are prepared in accordance with International Financial Reporting Standards(IFRS) and meet free zone regulations. While selecting an audit firm in Dubai, businesses must evaluate certain factors: the first and foremost important is whether it is an approved auditor in DMCC and then check whether they have relevant experience in handling DMCC audits, especially in your industry, and do they deliver and submit audits on time. One such DMCC Approved Auditor is Intellect Chartered Accountants, known for providing exceptional audit and assurance services in UAE and guides you through the entire audit process and not only ensures that you meet the DMCC audit deadline but also protecting your business from penalties, delays, and license renewal issues.
