The Dubai International Financial Centre (DIFC), a globally recognized financial free zone in Dubai, has mandated that the companies operating within the free zone are required to get their books of accounts audited by registered and approved auditors in DIFC. Companies operating within DIFC should maintain their book of accounts and exhibit an accurate picture of the financial position. Auditors in Dubai international finance center ensure proper maintenance of account books and ensure that company’s balance sheet are prepared in accordance with the IFRS standards.
As per the DIFC free zone, book of accounts should be kept at the registered office of the company and must be open during the inspection. Failing to comply with these rules, may result in hefty fines.
Submitting the external audit report is mandatory for the companies in the DIFC to get their trade license renewed. It is also crucial to remember that the companies will not be able to get their business license renewed if they conduct the audit by the external auditing firms that are not registered with the DIFC Authority. The audit process assures the authorities that the companies are not conducting any financial anomalies and are complying with the laws and regulations. In the DIFC, the companies in the financial and other regulated sectors are being regulated by the Dubai Financial Services Authority (DFSA). The other non-regulated companies are regulated by the DIFC Authority.
The DIFC was established in 2004 as an international financial center to enable the financial businesses to enter and expand into the emerging markets in the region. The DIFC was launched in accordance with UAE Federal Decree No. 35 of 2004 as part of the Dubai government’s goal to diversify the emirate’s economic resources and attract more investments. The DIFC is an independent jurisdiction within the UAE having its own legal and regulatory framework. The DIFC hosts a wide array of financial and non-financial companies focusing on sectors such as:
• Professional services
• Global corporations
• Wealth management
• Capital markets
What makes the DIFC stand apart from other free zones is its set of a unique legal framework governing civil and commercial laws. The DIFC is an autonomous entity with an independent judicial system that is consistent with the English Common law. THE DIFC Courts are exclusively responsible for all civil and commercial matters related to the companies registered in the DIFC.