Abu Dhabi Company Annual Review Full Guide: Full Analysis of Process and Core Values

For mainland investors, the registration of an Abu Dhabi company is only the first step into the Middle East market, and the annual review (referred to as "annual review"), as a legal compliance obligation, directly determines the survival of business qualifications. Compared with the one-time operation in the registration stage, the annual audit involves financial audit, information update, fee payment and other links, and the requirements of free zone and local companies are significantly different.

annual examination core value

the Abu Dhabi Company Annual Review is a statutory requirement of the UAE Ministry of Economy (Ministry of Economy) and the Abu Dhabi Global Market (ADGM) and its core objectives include:

1, information accuracy verification: update shareholders, directors, registered address and other core information, to prevent legal disputes caused by information lag.

2, financial transparency review: through the audit report to ensure that the financial statements truly reflect the company's operating conditions, to prevent the risk of financial fraud.

3, tax compliance verification: to confirm the value-added tax (VAT), corporate income tax (if applicable) declaration accuracy, to avoid tax penalties.

4, operational compliance assessment: check the company's compliance with labor law, anti-money laundering (AML) and other regulations, such as employee visa status, customer due diligence records.

Annual review of the whole process dismantling

phase 1: Pre-preparation

1. Sorting out the data list:

basic documents: company registration certificate, copy of business license, latest articles of association, register of shareholders and directors.

Financial documents: audited financial statements (including balance sheet, profit statement, cash flow statement), bank statements, contractual agreements. If the company's annual income is less than 1 million dirhams (e. g. ADGM Free Zone Small Business), it can be exempted from mandatory audit, but it is required to submit unaudited financial statements.

Compliance documents: tax returns (VAT/corporate income tax), employee visa records, lease contracts, industry licenses (e. g. medical, financial).

Governance documents: annual shareholders' meeting/board resolution, economic substance report (if engaged in related activities).

2. Audit entrustment:

select a licensed auditor and clarify the scope of the audit (e. g. whether statements are required to be prepared in accordance with IAS IFRS).

Phase 2: Execution and Submission

1. Audit implementation:

auditors on-site verify accounting records, bank flow, contract performance, and communicate business risks with management.

Key audit points: revenue recognition compliance, reasonableness of pricing of related transactions, and accuracy of tax filings.

2. Report issued:

the auditor issues an Audit Report that identifies "unqualified" or "qualified" opinions on the financial statements and assesses the effectiveness of corporate governance.

3. Online submission:

continental Companies: Upload documents through the Abu Dhabi Economic Development Department (ADDED) electronic platform to pay for renewal.

Free Zone Companies: Submitted through free zone portals such as ADGM, KIZAD, etc. Fees may be included in the annual fee.

Stage 3: Approval and follow-up (before the deadline of annual review)

1. Government review:

regulatory authorities verify the integrity of documents and data consistency (e. g., the matching of financial statements with tax returns).

FAQ: The address of the lease contract is inconsistent with the registered address, the shareholder information is not updated, and the audit report is missing.

2. Renewal of licence:

after approval, the company obtains a new valid (usually 1 year) business license, which needs to be printed and publicized in the office.

Late consequences: a daily fine of 100 dirhams, with the possibility of license revocation after accumulating up to 10000 dirhams.

3. Record retention:

keep all annual documents for at least 5 years for tax inspection or audit review.

Zhuoxin Enterprise provides agency services such as domestic and foreign company registration, bank account opening, annual tax return, agency bookkeeping, trademark registration, ODI Overseas Investment Filing, etc. If you have any business needs in this area, please feel free to consult our online customer service!