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DAFZA Audit Services

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Dubai Airport Free Zone External Audit Services (DAFZA)

In 1996, a decree created the Dubai Airport Free Zone. It is located next to Dubai Airport but is not formally a component of the airport. This is one of numerous autonomous free zones in and around Dubai and the United Arab Emirates. Each free zone is regulated autonomously by a local government and is intended to offer business-friendly settings for new firms. The majority of these free zones are promised to stay tax-free for up to 50 years, with several extra incentives for enterprises conducting business within them. There are little limits on cash transfers into and out of the free zones, as well as few restrictions on business activity both inside the free zones and with enterprises outside the UAE. Outside of the free zones, there are certain additional criteria for conducting business in the UAE. For years, these free zones have shown substantial development rates and are widely regarded as desirable locations for business.

External Audit Requirements for DAFZA 

DAFZA requires frequent external audits as one of its obligations. Each firm is obliged to renew its business license at the conclusion of its fiscal year. The business's owners/managers must submit an External Audit Report from an authorized audit firm as part of the renewal procedure. DAFZA uses the information in the firm's financial reports, as well as the audit report, to ensure that the business is functioning ethically, lawfully, and within the boundaries set by both the free zone authority and the UAE (where applicable). This informs the authority that the company's reports can be trusted and that the company is not engaging in fraudulent or improper behavior.

What is the Purpose of an External Audit? 

A business entity that wishes to conduct its business operations inside the DSO free zone must first register with the DSOA and receive a valid business license for the activities that it wishes to undertake within the DSO free zone. Any of the following business structures can be used by a business organization to establish its legal presence within the DSO: 

A free zone establishment (FZE) is a legal business organization that may be formed with only one stakeholder. AED 1,000,000 is the minimum capital necessary to establish a FZE within the DSO free zone. 

Free Zone Company (FZCO): A minimum capital of AED 500,000 is required to create a FZCO in DSO, with one share representing at least AED 100,000 or more. To form a FZCO in the DSO free zone, a minimum of two shareholders are necessary.

A firm's branch can be established in the DSO free zone by any multinational or local company. The branch will only be permitted to perform business operations that are identical to those of its parent firm.