Maintain of books of accounts/accounting records
Maintenance of books of accounts and necessary supporting and relevant records are highly essential requirements for proper management and control of the business operations. This will facilitate the correct receipt and payment of cash and other transactions entered by the company. It is mandatory to maintain the books of accounts under UAE company law and VAT law. Hence accounts maintenance in Dubai and all other emirates in UAE is compulsory.
Under Federal Law No. (2) of 2015 Commercial Companies in the United Arab Emirates ( UAE)
- Each company shall maintain proper accounting records showing its transactions and should disclose at any time the accurate financial position of the company. The Partners or shareholders should confirm that the books of accounts of the company are kept as per the provisions of this Law.
- Each company shall maintain its accounting books/records in its head office for a period of at least 5 (five) years from the end of the financial year of the company.
- The company may maintain an electronic copy of the original of the documents and records kept and deposited therein in accordance with the controls issued by a Ministerial Decision.
Account Records-Under UAE VAT Law (as per clarifications given for Draft Law).
It is mandatory for every taxable person to maintain books of accounts under UAE VAT law. In addition to that the authority can ask for additional documents such as, annual accounts, general ledger, purchase day book, invoices issued, invoices received, credit notes, debit notes, VAT Ledger etc.
Under the UAE VAT law the books of accounts and records are to be maintained for five years.