To foster Dubai's economy's future growth, Dubai Development Authority (DDA), formerly Dubai Creative Clusters Authority (DCCA), was established. The organization aims to improve economic competitiveness and set global standards for businesses and talents through the provision of an attractive and stimulating business environment that fosters their growth. In addition, it offers a wide range of integrated services relating to urban development and strategic sectors.
The DCCA regulations (Dubai Creative Clusters Private Companies Regulations 2016) require entities registered with the authority to keep their books and accounting records for at least eight years after the date to which they relate, or for such other period that may be prescribed by the Registrar. Furthermore, the regulations stipulate that the accounts must comply with generally accepted accounting principles or standards that have been approved by the Registrar or prescribed from time to time. Since UAE does not have its own accounting standards, International Accounting / International Financial Standards are normally used to prepare financial statements.
The regulation also stipulates that within six months after the end of the financial year, the directors of every company shall present to the annual general meeting the audited financial statements for each year, which shall include:
The company is also required to submit a copy of its financial statements and auditor's report within seven days after the annual general meeting to the Registrar.
According to the DDA regulations, the Authority has mandated that companies within its zone submit the latest audit report along with the summary sheet in the prescribed format given by DDA on or before 31st October 2022 and thereafter for every year within 6 months from the financial year-end. The audit report and summary sheet must be submitted through the AXS portal to the DDA. In the summary sheet prescribed by the authority, the following information must be included:
The above submission requirement is applicable to FZ – LLCs and Branch Companies and not to Freelancers.
Non-compliance with the above procedures prescribed by DDA may attract a fine and may lead to the non-renewal of the licenses.
In the future, the mainland licensing authorities and the free zones in the UAE will demand audited financial statement filings on an annual basis as corporate tax laws and other laws are introduced to closely monitor the activities of business groups throughout the UAE.
We United Auditing, the audit division of Emirates Chartered Accountants Group (ECAG ) have been present in the market for the last 17 years with the highest professional quality, real-time service, and maintaining ethical values. Our professionally qualified team at various levels of assignment execution ensures that requirements as per International Financial Reporting Standards and Auditing standards and other relevant compliance laws are properly complied with.
Pradeep Sai| Partner
Mob: +971 556530001