Company auditing in the UAE

Does every UAE company need an audit?

Every limited liability company and every joint stock company does. Article 27 of the Commercial Companies Law states that each shall have one or more auditors to audit its accounts yearly. Other company forms may appoint one.

Under Article 102, the auditor of a limited liability company is elected by the general assembly of partners every year.

The Commercial Companies Law is Federal Decree-Law No. 32 of 2021. Free zone companies follow the rules of their free zone where those rules make special provision.

When are audited financial statements required for corporate tax?

Audited financial statements are required from a taxable person with revenue above AED 50,000,000 in the tax period, and from any Qualifying Free Zone Person. The rule is Ministerial Decision No. 84 of 2025, issued on 25 March 2025.

Decision No. 84 of 2025 replaced Ministerial Decision No. 82 of 2023. It applies to tax periods starting on or after 1 January 2025. The 2023 decision continues to apply only to tax periods that began before that date.

Article 54 of the Corporate Tax Law lets the Minister require categories of taxable persons to prepare audited or certified financial statements, and lets the FTA request the statements used to compute taxable income.

Do free zone companies need an audit?

It depends on the free zone. The three free zone authorities we checked all ask for financial statements, and their rules differ.

JAFZA publishes a submission fee of AED 10 inside Jafza or AED 20 outside. The fee was checked in September 2026 and can change.

Good to knowIFZA accepts a simplified financial statement on its own template only if turnover is AED 3 million or below and the company had nine or fewer employees. Otherwise it requires full audited financial statements. We did not check the rules of other free zones.

Which accounting standards apply, and how long are records kept?

Companies must apply International Accounting Standards and Practices when preparing accounts, under Article 27 of the Commercial Companies Law.

Article 26 requires every company to keep accounting registers at its head office for at least 5 years from the end of the fiscal year.

Article 56 of the Corporate Tax Law requires taxable persons to keep records for 7 years after the end of the tax period.

Does a branch of a foreign company need its own audit?

Yes. Under Article 338 of the Commercial Companies Law, a branch of a foreign company must keep an independent balance sheet, have a UAE registered auditor, and file accounts with the auditor's report every year.

Representative offices are excluded from that rule.

Who carries out the audit?

Tax, accounting and audit work is carried out by Links' sister firm, LINKS Tax Consultant (linkstaxs.ae). It tells you the cost in writing before you commit.

Some free zones limit which auditors they accept. DMCC requires an auditor on its Approved Auditors List, so the auditor is confirmed against your free zone's rule before the work starts.