September 23, 2023Dated: | ByMarketing Marketing | ADGM | Mastering Annual Account Filing in ADGM: A Thorough Guide Summary: Filing annual accounts is a fundamental obligation for businesses in the Abu Dhabi Global Market (ADGM). The intricacies of the process depend on your company’s size, nature of operations, and financial standing. In this comprehensive guide, we delve deep into the essential aspects of annual account filing in ADGM to help you navigate the process effectively. 1. Types of Accounts to File The filing requirements hinge on the size and nature of your business. Typically, ADGM mandates the submission of audited annual accounts, including an Auditor’s Report, a Director’s Report, and a Board resolution endorsing the accounts. However, small businesses that meet specific criteria can opt for a simplified version, featuring an unaudited balance sheet if the business has; If the turnover of the company is less than USD 13.5 Million and; The number of employees is less than 35. Public Interest entities and financial service entities are not eligible for filing the unaudited balance sheet irrespective of turnover or number of employees. 2. Formal Requirements Ensuring compliance with formal legal requirements is paramount. All annual accounts must be denominated in U.S. Dollars (USD), signed by a director, and, in the case of audited accounts, properly signed and labelled Director’s and Auditor’s reports. 3. Filing Deadlines Every ADGM company or LLP has an Accounting Reference Date (ARD), a pivotal date determining filing deadlines. For first annual accounts, newly established entities must file within nine months of their ARD, considering the length of the financial year. Subsequent annual accounts for existing firms must also adhere to the nine-month deadline from the ARD. 4. Changing an ARD Companies and LLPs can request a change in their ARD, provided they meet certain eligibility criteria. To initiate this change, a directors’ resolution supporting the alteration must be submitted. 5. Account Filing Extension Applications In exceptional circumstances, the Registrar may grant extensions for filing accounts. These extension requests must be submitted before the original deadline, and each case is evaluated individually. 6. Penalties for late submission of Annual Accounts filing The penalty for late filing can be up to USD 15,000/- In short, any entities registered in ADGM and the Annual Reference Date ended on 31st December 2022 shall submit the annual accounting reports to the authority before 30th September 2023. Read More Latest Blogs. Different Types of Accounting Practices in UAE Logging in EmaraTax using UAE Pass The Future of Accounting and Auditing Practices in UAE