Audit Compliance - Dubai Textile City

Are Audits Mandatory in JAFZA?

All JAFZA-licensed companies must submit audited financial statements annually to maintain their license and remain compliant with JAFZA regulations. Non-compliance may result in penalties, license restrictions, or suspension.

As per JAFZA guidelines, every registered entity must:

• Maintain proper accounting books in accordance with IFRS

• Appoint a JAFZA-approved auditor

• Submit yearly audited financial statements to the authority

Frequently Asked Questions – JAFZA Audit Services

1. Is an annual audit mandatory for companies in JAFZA?

• Yes. All companies registered in JAFZA (FZE, FZCO) must prepare and submit annual audited financial statements as per JAFZA regulations.

2. What happens if a company fails to submit the audit report to JAFZA?

• Non-compliance can lead to: Delay or rejection of license renewal, Imposition of sanction on Dubai Trade Portal, Blocking or suspension of the license

3. What accounting standards must be followed in JAFZA audits?

• JAFZA requires companies to maintain books of accounts and prepare financial statements in accordance with International Financial Reporting Standards (IFRS).

4. What is the timeline for submitting audited financial statements in JAFZA?

• Audit reports must be submitted annually, usually within 6 months from the end of the financial year.

5. What documents are required for a JAFZA audit?

• Common documents required include Trial balance & general ledger, Bank statements & reconciliations, Sales, purchase & expense invoices, Fixed asset register, Inventory records (if applicable), Payroll & HR records, Previous year audit report (if applicable)