The Dubai Multi Commodities Center (DMCC) has given certain firms permission to do the annual audits that all companies registered in this top free zone are required to do. These firms are called DMCC approved auditors in the UAE. The auditors make sure that your financial statements follow the rules set by DMCC, International Financial Reporting Standards (IFRS), and International Standards on Auditing (ISA).
Aside from that, they make sure they pass tests of economic substance and file their papers by June 30 deadline every year. HH & HALE is a well-known name on the official DMCC Approved Auditors List. We make it easy for trading, crypto, and service businesses to meet these standards so they don’t have to deal with penalties or delays.
Why does DMCC need approved auditors?
DMCC only lets audits come from companies on its own list of approved auditors. This is to make sure that the world’s busiest trading hub for commodities stays honest and reliable. The main reasons are:
- All DMCC companies must send in Audited Financial Statements (AFS), even if they don’t make any money or are on hold.
- It takes time and costs money to get rid of reports from auditors who haven’t been approved.
- To get Qualifying Free Zone Person (QFZP) status and renew licenses more easily, make sure you follow the rules on time. This is because of UAE corporate tax rules.
If you choose a listed auditor, your business and its reputation will be safe.
How DMCC Auditors gets Approved?
DMCC carefully picks auditors through a strict evaluation process to make sure quality and dependability.
Important requirements:
- Have a valid business license in the UAE that only allows auditing services;
- Be licensed by the Ministry of Economy and have a team of qualified partners with CPA, ACCA, or ICAEW credentials.
As an example, use IFRS 16 to show that you know a lot about things like lease accounting, revenue recognition, and transfer pricing.
- Make sure you have up-to-date professional liability insurance and that you’re following ISA rules without breaking any of them.
Get approval again every year, and remember that risk-based audits will change in 2025. These rules make sure that audits follow the rules all over the world, not just in their own country.
How to Check and Choose DMCC Auditors?
The first thing you should do when picking the right auditor in Dubai is to get official confirmation. This will help you avoid compliance risks.
- A useful way to check is to visit the DMCC website or portal and look at the current list of approved auditors.
- Check to see how well the company has done with DMCC clients in your field, such as with digital assets or goods.
- Look at the fixed fees, turnaround times (which are usually 4 to 6 weeks), and customer reviews of businesses that are similar to yours.
The fact that HH & HALE has a history of success in DMCC and puts the needs of its clients first makes it stand out.
How a DMCC audit works?
When DMCC audits a company, they look at all of its finances, but they focus on things that are specific to each zone. Here are the detailed steps for auditing:
- Look over the balance sheets, income statements, and cash flows using the templates that DMCC gives you.
- Check for contracts for offices, records of board meetings, and other forms of economic proof.
- Verify that bank statements, VAT returns, and business tax calculations are all correct.
- Confirm that trading agreements, inventory values, and deals involving people who are related to each other are correct.
Business that are ready to do this quickly and on time.
List of the Paperwork You Need for Your DMCC Audit
To save time and money on the audit, get these records ready ahead of time.
Fill out the document checklist:
- A business license, an Articles of Association (MOA), share certificates, and a lease.
- The full year’s worth of bank statements, trial balance, and management accounts.
- Cheques for purchases and sales, payroll summaries, and VAT return forms (G1 forms).
- Arrangements of fixed assets, counts of stock, and proof that the company is set up to pay taxes.
The process is easy for auditors when the work is sent digitally.
Risks and consequences of not following
For your business, not following the rules for DMCC audits can lead to a lot of trouble.
- Using auditors who haven’t been approved will lead to reports being rejected and having to be audited again.
- When you miss a deadline, you could be fined AED 5,000 to AED 20,000 or more.
- Your license or QFZP benefits could be taken away if you keep having problems.
Your business will run smoothly if you follow the rules.
HH & HALE: Your Reliable DMCC Partner Auditors
Full auditing services are available from HH & HALE, we know a lot about how businesses work in free zones.
One thing that makes HH & Hale unique is that it is on a real list, registered with the Ministry of Economy, and fully insured.
- Know-how of checking trading, making sure crypto is legal, and giving QFZP paperwork.
- Digital processes that are easier to use and require less work from you.
- Fixed-fee packages that aren’t too expensive and come with free reviews before the audit.
Get in touch with HH & HALE right away to make sure you’re on the DMCC Approved Auditors List and can meet the deadline.