The Dubai Multi Commodities Centre (DMCC) free zone offers many benefits for businesses that are registered in this free zone area. It is located in the Jumeirah Lake Towers and includes many benefits for the businesses that are located in this area in UAE. The benefits include flexible business-free set-up procedures, flexible office structure, and various types of licenses. However, it is important for businesses to get the books of accounts audited by approved auditors with DMCC authority.
DMCC free zone provides a lot of benefits while running a business and registering like different licenses and stress-free business formation etc. In this article, we will be discussing the understanding of DMCC rules and regulations for businesses.
Understanding DMCC Rules And Regulations For Business
DMCC has its list of auditors to make sure that there are high-quality auditing services for the business registered under DMCC. All audit firms have reputed tax accountants who comply with the best standards and practices with experience in conducting financial audits.
DMCC makes sure that the audited financial statements are accurate and show accurate financial positions for the member companies by using the services of registered auditors in Dubai, UAE.
All DMCC member companies should provide their audited financial statements over the transitional period through a DMCC-approved auditor. DMCC mandates all companies to submit their approved financial statements within 90 days after the fiscal year.
Documents Required To Conduct The Financial Audit By DMCC-Approved Auditors
The auditors ask the DMCC forms to provide their documents to continue with the auditing and assurance. The auditor’s job is to check the financial position, comply with the DMCC authority regulations, and analyze financial statements of the year-end.
Here is the list of documents required for the auditing and assurance:
- Account statements from the bank.
- Additional copies of all the invoices and bills.
- Transition confirmation slips for all financial transactions.
- Articles of association and Memorandum of Association.
- Statements of deposits from the DMCC portal.
- Registration details of excise tax and VAT.
- Copy of the latest trade license.
Auditing Process For DMCC Free Zone Firms
If we talk about the auditing process, there are some specific regulations that companies and officials need to work on in cooperation with DMCC-approved auditors. However, any false or deceptive statement is prohibited by the DMCC for the auditing process because it can cause serious penalties. Also, companies cannot omit or change any information required by the auditors. Here is the process for the auditing and assurance in DMCC free zone:
Preparing The Accounts For Audit:
It is mandatory for all the directors of free zone companies in the DMCC to obtain the preparation of accounts for every financial year. The financial accounts must specify the loss and profit made during the given period and comply with international financial reporting standards.
Every firm needs to provide a copy of the audited documents and the report of the auditor within 5 business days of the relevant meeting along with a DMCC summary report.
Maintenance Of Accounts
Every firm needs to have account records along with supporting documents. These records show the transactions with accuracy and also show the financial position of the company at that specific point in time.
DMCC makes it compulsory for companies to copy audited financial statements and audit reports. If the company has not provided the copy then the shareholders have the right to file a written request to the company. The firms must respond to the request within 5 days and provide the required documents.
Appointment Of Auditors
The company has to appoint a third-party auditor for auditing and assurance and the auditor must be registered in DMCC. The audit reports of the company should have the accounts of the company and should comply with the IFR standards. Also, the report must state that the company has been involved in the activities according to the license or any other compliance by the DMCC authority accordingly.
Conclusion
Auditing accounting indicates the true position of the company in the market. The companies that are registered in DMCC enjoy many benefits but they also need to follow all the regulations. All the rules and regulations are for the future growth of the company that is registered in the DMCC free zone. It is mandatory for companies and businesses to follow the DMCC rules and regulations and also for the process of the auditing process.
If want to get your auditing and assurance, ebs is a registered auditor to assist in your auditing process. No matter whether you are located in the mainland or the free zone, we got you covered for your auditing requirements. Feel free to consult the expert teams of ebs about auditing services and any confusion regarding internal or external auditing. If you are looking for approved auditors in UAE, then don’t hesitate to contact ebs.