Audit Services for Businesses Registered in the Fujairah Free Zone (FFZ)

External audit is a mandatory requirement in Fujairah Free Zone (FFZ) which is one of the major free zones located in the Emirate of Fujairah. Located next to the Fujairah International Airport and Fujairah sea port, Fujairah Free Zone offers startups as well as established companies with unmatched opportunities and services. Businesses operating within the Fujairah Free Zone also have access to the Red Sea, all Arabian Gulf ports, Pakistan, Iran, and India on weekly feeder vessels. Mainline services reach FFZ from North America, Northern Europe, Mediterranean, and the Far East on a weekly basis, and services leaves once in a week to North America and twice to the Far East.

Fujairah Free Zone offers businesses operating with easy access to the world’s major shipping routes together with an international airport and a fine sea port, and streamlined procedures and processes. All these features and facilities makes the FFZ an ideal place to do business.

Each free zone in the United Arab Emirates (UAE) is governed by a local authority that is responsible for establishing rules and regulations for businesses to comply with when conducting business operations within the free zone areas. In Fujairah Free Zone, the authority that is responsible for regulating and controlling the environment for businesses is known as Fujairah Free Zone Authority (FFZA).

Types of Business Entities

The types of business entities that can be established/ registered in the FFZ are as follows:

1) New Business Entities

• Free Zone Establishment (an entity with a single owner/ shareholder)
• Free Zone Company (a legal business entity having two or more owners/ shareholders)

2) Branches

Any foreign or local firm can register its branch in the Fujairah Free Zone subject to fulfilment of certain requirements/ conditions. The branch can only perform business activities that are similar to the ones which its parent company performs. For a company to open its branch in the FFZ, it usually requires the following documents:

• Board Resolution of the parent company
• Valid business license of the parent company
• Articles and Memorandum of the parent company attested by the UAE embassy
• Copies of passports together with 2 photographs of all the directors and shareholders of the business entity.

Types of Business License

Businesses wanting to operate within the Fujairah Free Zone should first obtain a commercial license which will issued by the FFZA. The types of business licenses which FFZA offers are as follows:

• Service License
• Trading License
• Industrial License

Benefits of Operating within the Fujairah Free Zone

Businesses carrying their operations within the FFZ enjoy the following benefits:

• Total exemption from corporate as well as personal tax
• Cost effective workforce
• 100 per cent foreign ownership
• No restriction on repatriation of capital
• No restriction on hiring foreigners

External Audit Requirement for Companies Registered in Fujairah Free Zone

Fujairah Free Zone Authority requires any business entity operating in the FFZ to appoint an auditor appearing in the list of FFZA approved auditors to report on the financial and the operational aspects of the business and to give an opinion whether the entity’s financials give a true and fair view and are prepared in compliance with applicable rules and regulations. Arqaam Global Chartered Accountants is an FFZ approved auditor and can perform external audits of businesses registered in the FFZ.

The FFZA requires businesses registered in the FFZ to have their operations as well as financial statements audited annually by an approved auditor in the FFZ for the following reasons:

• An external audit report provides the authority with all the information they need to ensure that registered businesses in the FFZ are complying with the applicable laws and regulations.
• An external audit provides assurance to the FFZA that an entity’s financial statements have been compiled and prepared in accordance with the applicable accounting standards and that entity is not engaged in any illegal activity.
• An audit report from a FFZ approved auditor provides an entity’s stakeholders with assurance that information disclosed and presented in the entity’s financials can be depended upon when making important business decisions.

Approved Auditors in Fujairah Free Zone

Only the audit firms approved by the FFZA can perform annual statutory audits for businesses registered in the FFZ. The FFZA has its own standards and procedures for giving licenses to audit firms for auditing businesses operating in the FFZ. In order for any audit firm to maintain its status as an approved auditor in FFZ, it must provide FFZA evidence regarding its staff members updating their knowledge and skills with the changing methods as well as accounting and auditing standards.

Why Arqaam Global Chartered Accountants?

Arqaam Global Chartered Accountants is well-known audit and bookkeeping firm in the UAE. We are an FFZ approved audit firm and have audited a number of high profile businesses operating in the FFZ.

We are known for providing high quality audit and bookkeeping services all across the world. At Arqaam Global, we have highly experienced accounting, audit and tax professionals that have sound knowledge of accounting and auditing standards as well as the rules and regulations prevalent in the free zones and the UAE.

Apart from providing statutory audit services, we also provide the following services:

• Bookkeeping services
• VAT and legal consultancy services
• Company registration and incorporation services
• Internal Audit services

Should you require a FFZ approved audit firm to conduct audit of your business then don’t wait and contact us immediately.

Frequently Asked Questions

Q: Is external audit compulsory for businesses operating in the FFZ?

A: Yes, external audit is compulsory for all businesses conducting operations in the FFZ.

Q: Who can perform external audit of business entities operating in the FFZ?

A: Only the audit firms that are authorized and approved by the FFZA can perform audit of businesses operating in the FFZ.

Q: Are you a FFZ approved auditor?

A: Yes, Arqaam Global Chartered Accountants is a FFZ approved auditor that can perform external audits of companies/ branches operating in the FFZ.

Q: Do you only operate in the UAE?

A: No, we have our offices in six continents and provide audit, accounting, tax and other business related services in countries like UAE, UK, Australia, India, Pakistan and many others.