Auditing in the UAE
Statutory audit requirements in Dubai & UAE: which companies must file audited accounts, free zone rules, approved auditors, deadlines and typical fees.
Business Setup AE editorial review Last reviewed 2026-09-09
Quick answer
A UAE audit is an independent examination of financial statements by a licensed audit firm. Whether your company needs one depends on the licensing authority and the activity: audited statements are commonly required for mainland companies under the Commercial Companies Law, by many free zones at renewal, and for corporate tax purposes where the Federal Tax Authority requires them — including free-zone companies claiming Qualifying Free Zone Person status. Confirm the requirement with your authority. Audit fees typically run AED 5,000–25,000 a year depending on entity size, transaction volume and group complexity.
- Who needs it
- Depends on the authority, activity and tax position
- Auditor
- Must be registered and authority-approved
- Standard
- IFRS financial statements, ISA audit
- Fee band
- AED 5,000 – 25,000 per year
- Deadline
- Set by the free zone; often at licence renewal
- Retention
- 7 years of records
Audit obligations in the UAE come from three directions: company law, the free zone's own regulations, and corporate tax. Requirements are set per authority and per activity rather than by one national rule, so check yours: many mainland companies must have accounts audited under the Commercial Companies Law, many free zones require an audit report before renewing a licence, and the Federal Tax Authority requires audited financial statements in defined cases, including tax groups and companies claiming Qualifying Free Zone Person status.
The audit must be performed by a firm registered with the Ministry of Economy and, in many cases, on the specific free zone's approved auditor list. A report from a firm not on the list gets rejected at renewal.
This page explains who needs an audit, what auditors ask for, realistic fees, deadlines and how to reach a clean opinion without a year-end scramble.
| Entity profile | Annual revenue | Fee band (AED) |
|---|---|---|
| Dormant / holding entity | Nil | 3,000 – 6,000 |
| Small service company | Under AED 3m | 5,000 – 10,000 |
| Trading company | AED 3m – 15m | 10,000 – 18,000 |
| Group or multi-entity | AED 15m+ | 18,000 – 45,000 |
Who must be audited?
- Mainland companies where the Commercial Companies Law or the licensing authority requires audited accounts
- Free zone companies where the zone's regulations require an audit report at renewal (most zones, including DMCC, JAFZA and DAFZA)
- Companies meeting the corporate tax revenue threshold for audited financial statements
- Tax groups preparing consolidated financial statements
- Entities with regulatory licences — financial services, insurance, education and healthcare
- Branches of foreign companies where the licensing authority requires it
What the auditor will request
The audit file is built from evidence, not assertions. Providing complete records upfront is the single biggest driver of both fee and timeline.
- Trial balance, general ledger and reconciled bank statements
- Sales and purchase ledgers with supporting invoices
- Fixed asset register with additions and disposals
- Payroll records, WPS files and end-of-service provision workings
- Lease agreements, loan documents and related-party contracts
- VAT returns reconciled to revenue, and the corporate tax computation
- Board resolutions and updated shareholder and UBO registers
Who this option suits best
- Free zone companies approaching licence renewal
- Mainland LLCs meeting statutory audit obligations
- Companies above the corporate tax audited-statement threshold
- Groups consolidating multiple UAE entities
- Businesses preparing for bank facilities or investment
Step-by-step process
- 1
Confirm whether you need an audit1 day
Check company law, your free zone's renewal rules and corporate tax thresholds.
- 2
Appoint an approved auditor1 – 2 weeks
Verify Ministry of Economy registration and free zone approval-list status.
- 3
Close the books and prepare statements2 – 6 weeks
Reconciled accrual accounts under IFRS.
- 4
Provide the audit evidence pack1 – 2 weeks
Ledgers, contracts, payroll, bank confirmations and registers.
- 5
Respond to queries and adjustments1 – 3 weeks
Audit adjustments are agreed before the report is signed.
- 6
Receive the report and file1 week
Submit to the free zone or authority and retain for tax purposes.
Documents required
- Trial balance and general ledger
- Bank statements and bank confirmation letters
- Sales and purchase invoices
- Payroll and end-of-service workings
- Lease, loan and related-party agreements
- Licence, MOA and shareholder register
Realistic timeline
| Stage | Duration |
|---|---|
| Book close | 2 – 6 weeks after year end |
| Fieldwork | 1 – 3 weeks |
| Adjustments and review | 1 – 3 weeks |
| Signed report | Before licence renewal deadline |
Audit fees rise sharply where records are incomplete. Clean monthly bookkeeping typically pays for itself in reduced audit fees and avoided renewal delays.
Common mistakes and how to avoid them
Appointing an auditor not on the free zone list
Fix: Check the zone's approved auditor register before engaging.
Starting the audit weeks before renewal
Fix: Begin within a month of year end; late audits risk licence renewal penalties.
Unreconciled VAT and revenue
Fix: Reconcile filed VAT returns to reported revenue before fieldwork.
Missing related-party documentation
Fix: Paper intra-group transactions at arm's length with written agreements.
Treating a dormant company as exempt
Fix: Dormant entities still need a report where the zone requires one.
Compliance after licensing
- Corporate tax registration with the FTA — 9% applies on taxable profit above AED 375,000; 0% below it. Small Business Relief may apply to revenue under AED 3m.
- VAT registration is mandatory once taxable turnover passes AED 375,000 in 12 months, and voluntary from AED 187,500.
- Economic Substance notifications and reports applied only to financial years ending on or before 31 December 2022 — no new ESR filings are due for later years (Ministry of Finance).
- Ultimate Beneficial Owner (UBO) register kept with the licensing authority and updated within 15 days of any change.
- Anti-Money Laundering (AML) registration on the goAML portal for designated non-financial businesses and professions.
- Annual licence and establishment-card renewal, plus audited financials where the free zone or activity requires them.
Regulators referenced: Ministry of Economy (UAE) · Dubai Department of Economy and Tourism (DET) · Abu Dhabi Department of Economic Development (ADDED) · Federal Tax Authority (FTA) · General Directorate of Residency and Foreigners Affairs (GDRFA) · Ministry of Human Resources and Emiratisation (MOHRE)
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Do all UAE companies need an audit?
How much does an audit cost in Dubai?
Which free zones require audited accounts?
Who can sign a UAE audit report?
What is the deadline?
People also ask
Is audit mandatory for all companies in the UAE?
Not every company in every jurisdiction, but most free zones require audited accounts at renewal, mainland companies may be asked for them under the Commercial Companies Law, and corporate tax rules require audited statements once revenue exceeds AED 50 million or for qualifying free zone persons. Check your authority's current rule.
What happens if I do not submit an audit report?
The free zone can withhold licence renewal and apply penalties, and incomplete records expose the company to tax penalties separately.
Can my accountant audit my company?
No. The auditor must be independent of the bookkeeping function and licensed to perform audits.
Is a dormant company audited?
Where the zone requires a report, yes — a dormant audit is cheaper but still required.
Founder checklist
- Confirm your audit obligation before year end
- Verify the auditor's approval status with your authority
- Reconcile VAT returns to revenue
- Prepare the fixed asset register and payroll provisions
- Document related-party transactions
- Book the audit within a month of year end
Why you can trust this guide
- Independent marketplace — Business Setup AE does not form companies and takes no commission on provider pricing
- Package prices are read from each provider's own published page or PDF and stored with that source URL and check date
- Government fee figures are cited to the published schedule of the relevant authority; where an authority does not publish a figure we say so instead of estimating
- We do not audit provider operations, licence standing or adviser credentials — see how we verify for exactly what a verification covers
Editorial ownership: Business Setup AE Editorial Team. See our editorial and corrections policy and package verification method.
Related guides and services
Official government sources
Fees, thresholds and licensing rules on this page are checked against these official UAE government and regulator sources.
- Ministry of Economy — auditor registrationRegister of licensed audit firms and practice rules
- Federal Tax Authority — corporate tax and VATSource for the 9% corporate tax threshold and VAT registration limits
- u.ae — official UAE government portalGovernment guidance on starting a business and licence categories
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