The Dubai International Financial Centre (DIFC) was established as a multinational financial center. It allows financial businesses to enter and develop in the rising market in the region. The DIFC was launched in settlement with Dubai Federal Decree No. 35 of 2004 as part of the UAE rule’s ambition. They expand the emirate’s profitable resources to attract further investments. The DIFC is an independent authority within the UAE having its legal infrastructure. The DIFC hosts an inclusive array of financial and non-financial firms directed on sectors like:
- Global companies
- Wealth management
- Capital markets
- Professional services
How Can Businesses Conduct Audit Procedures in DIFC?
Essentially, Businesses operating within DIFC are compelled to maintain their book of accounts and also to present an accurate framework of the financial audit position. Dubai International Finance Centre audit ensures the transparency of account books in compliance with the set regulations and laws. Moreover, they also ensure that the company’s balance sheet is prepared in line with the IFRS standards. As per the DIFC free zone, accounts should be kept at the registered office of the company. It must be open during the review.
Respective Governing Authorities
There are three governing authorities with their own set of roles. These include:
1. Dubai International Financial Centre Authority (DIFCA)
The DIFCA is a controlling authority that manages and helps in the development of companies that are set up in the DIFC. This authority was made through the UAE Law No. 9 of 2004. The primary objective of the DIFC authority is to form and develop relevant regulations and standards.
2. Dubai Financial Services Authority (DFSA)
The DFSA was issued through the UAE Law No. 9 of 2004. DFSA is a free controller of financial and related services conducted in or from the zone. The DFSA also manages regulated firms and monitors the enforcement of compliance with the relevant regulation.
3. The DIFC Courts
The DIFC Courts were also issued through the UAE Law No. 9 of 2004. The statute grants it the power to act as a self-governing enforcer of justice in the free zone. It helps to resolve all kinds of civil and commercial clashes that occur in the free zone.
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Requirements for Audit in DIFC
The major essentials for audit in DIFC are;
- All companies registered in the DIFC have been classified as Private Companies. They have 30 days from the date of acting to declare their companies as Public. A Public Company is one that has 50 or more stockholders and is publicly listed.
- An auditor must be employed to file audited financial statements for Private firms with 20 or more shareholders. These financial audit statements must be submitted online by the DIFC Client Portal within 7 months of the firm’s financial year.
- All firms working in the DIFC must establish a Register of Ultimate Beneficial Ownership (UBO) within 90 days of the enactment date.
- The requirement to file an Annual Report Return has been replaced with the file of a Validation Statement. It has to be submitted at the time of License Renewal.
- The firm should submit the regulatory return auditor’s report to the DIFC. It is also mandatory to submit a client, insurance, safe custody, and fund auditor’s report.
Documents Required for Business in DIFC
Some compulsory documents required in DIFC are;
- Proof of business name reservation
- Proof of primary approval document for the activities
- Personal Information report for each shareholder and manager
- Copy of C.V of the Manager
- Documents Having a physical address for your business office
Also, it might be an obligation for a few other documents by the authorities.
Benefits of DIFC Firms
The following are the main benefits of auditing firms in DIFC free zone;
- 100% Foreign Ownership is allowed for an auditing firm in DIFC free zone.
- Globally Accepted Laws and regulatory processes.
- 0% Tax Rate On Income and Profits for an auditing firm in DIFC free zone.
- A Wide Tax Agreement Network for UAE combined entities.
- An Entirely Clear Operating Environment. Parallel to the terms with international best practices.
- Freedom of Return of Capital and Profits for DIFC auditing firm in Dubai.
- An array of permitted vehicles may be established with capital structuring Flexibility.
- A Modern and Efficient transport, communications, and internet set-up.
Avail the Services of Top Audit Firms in Dubai
We are a trusted and reputable financial Audit Firm in Dubai, we deliver top-notch audit services that meet the client’s specific needs. Still more, we provide several other services such as bookkeeping, accounting, and VAT calculation. So, do not hesitate to get in touch with us today and we shall be happy to assist you!
Kasun Liyanage is an Audit Manager with over 7 years of experience dealing with diversified corporate clients. He not only manages the team’s work schedule but also is an expert in handling audit areas such as external audits and fraud investigation, Internal control benchmarking and best practices and well as preparation of financial statements and IFRS compliance.