Is Audit Mandatory for Companies in JAFZA (Jebel Ali Free Trade Zone)?
Auditing by a JAFZA listed Auditor is mandatory for the Companies registered within Jafza (Jebel Ali Free Trade Zone). As per the regulations of the free zone all JAFZA registered Companies /Entities should appoint JAFZA approved and an independent auditor to make the annual audit report.
Introduction to JAFZA
Jebel Ali Free Zone Authority (JAFZA) is one among the oldest free zones in the United Arab Emirates (UAE) catering to the needs of thousands of the business and supporting UAE’s objectives of attracting foreign investments and ensuring sustainable developments. It continuously strives to offer the best services for its members without compromising on quality and compliance of law in the region.
What is the period of Audit for companies registered in JAFZA?
As per the provisions of the JAFZA regulations every company should do the auditing of their books of accounts from the approved auditors in JAFZA within three months from the end of the financial year or within the extended period if any.
How to submit the Audited Financial Statement?
Every JAFZA Registered Companies should upload the summary sheet of the financial figure in the prescribed form which has to be signed & stamped by the Approved Auditor in JAFZA along with the Audited Financial Statements on the portal of JAFZA .
What if You Do Not Audit Your Books of Accounts for your company registered in JAFZA?
If a company in JAFZA fails to submit the audited financial statements within the time frame to the Authority through the online portal it will be liable to pay penalty for non-compliance of the JAFZA Regulations. Companies can however request to the Free Zone Authority for an extension of the deadline for the submission of the audit reports from the approved auditors in JAFZA. The principal hazards that companies bear for failing to submit audited financial reports is the non-renewal of their trade license in JAFZA
What are the documents to be maintained for JAFZA Audit?
Every company registered under JAFZA should maintain proper books of accounts and shall provide the same to the JAFZA Approved Auditors for conducting Auditing. In addition to the trial balance, financial statement and relevant MIS reports, the company should provide different legal documents for the auditor to verify during the audit. Such legal documents include the following:
- Memorandum Of Association (MOA)
- Articles Of Association (AOA)
- Trade license copy
- Share certificate
- Certificate of Incorporation
As and when required the company should provide supporting documents of transactions such as invoices, vouchers, contracts, etc. to the Auditors for their verification.