Circular 421: Submission of Audited Financial Statement in Compliance with the DDA Private Companies Regulations 2016

October 5, 2022 | | Uncategorized |


Based on Circular number 421 of DDA Private Companies Regulation 2016, all the Free Zone
LLCs and Branches are required to submit the Audited Financial Statement and Annual Return
each financial year. The companies are required to submit their most recent Audited Financial
Statement and Annual Return on or before 30th November 2022.
The branch office may choose to file either Consolidated Financial Statements of its parent
company or stand-alone Financial Statements of branch operations only.
Regulations 63-68 of the Private Companies Regulations of 2016 have explained the below
points which are applicable for all FZ LLCs.

  1. Maintenance of books of accounts as per Generally Accepted Accounting Principles or
    Standards prescribed by Registrar or prescribed from time to time.
  2. Keeping accounting records at least for 8 years.
  3. Conducting of General Meetings and submitting the Financial Statements in the General
    Meetings.
  4. Appointment of the Auditor of conducting an audit for each financial year.
    The new regulation aims to achieve compliances relating to Federal and Local Laws, in
    particular the laws regarding Anti Money Laundering (AML) and Combatting Financing of
    Terrorism (CFT), Economic Substance Regulation, and Tax Laws.

The companies that have been newly registered and have not completed the first financial year
must submit the Audited Financial Statements and Summary sheet within six months from the
date of financial year-end.
The reports submitted will be scrutinized and monitored by the authority and any kind of non-
compliance may attract a penalty as per decision number (2) of 2017 as per the sole discretion of
the Authority.
The Audited Financial Statement and summary sheet have to be filed via AXS Portal. Those
companies who have already filed the Audited Financial Statements as per Economic
Regulations are still required to submit the reports via AXS Portal.
The below listed free zones are falling under these regulations, the FZLLC and Branches
registered under these Free Zones must file the Audited Financial Statement and Summary Sheet
( Annual Return ) on or before 30th November 2022.

  1. Dubai Internet City
  2. Dubai Outsource City
  3. Dubai Industrial City
  4. Dubai Media City
  5. Dubai Studio City
  6. Dubai Production City
  7. Dubai Knowledge Park
  8. Dubai International Academic City
  9. Dubai Science Park
  10. In5
  11. Dubai Design District
  12. Dubai Quarters
Write a comment