World Class Audit & Assurance Services for Businesses Registered in Fujairah Free Zone
Fujairah Free Zone (FFZ) is one of the two major free zones located in the Fujairah Emirate. The said free zone is located next to the Fujairah port. Businesses established and operating within the FFZ also have access to the Red Sea, all Arabian gulf ports, Pakistan, India and Iran on weekly feeder vessels. Mainline supplies/ services arrive from the Mediterranean, Northern Europe, North America and the Far East on a weekly basis, and services leave once a week to North America and twice weekly to the Far East. FFZ is also close to the only International Airport located in the emirate of Fujairah.
Businesses operating in the Fujairah Free Zone are provided with easy access to an international airport, sea ports, and streamlined methods and processes. All the above mentioned features and facilities make the Fujairah Free Zone an ideal place for investors and business entities to invest and conduct business operations.
There are certain rules and regulations which the business entities operating within the Fujairah Free Zone are required to comply with if they want to continue their operations within the free zone.
Types of Business Formations/Entities
1) New Business Entities
• Free Zone Establishment (FZE) is an entity with a single shareholder/ owner
• Free Zone Company (FZC) is a legal entity with two or more shareholders
Any international or local firm can open its branch in the Fujairah Free zone subject to certain conditions/ requirements being fulfilled. The branch is allowed to conduct only those business operations that are similar to that of its parent company. In order for a company to open a branch in the Fujairah Free zone:
• Board Resolution of the Parent Company
• Valid operating license of the parent company
• Memorandum and Articles attested by the UAE embassy of the parent company
• Passport copies along with two photographs of all the Shareholders and directors of the entity.
Types of Business License
Business entities wanting to conduct their operations within the Fujairah Free Zone are required to first obtain a commercial license which will be issued by the Fujairah Free Zone Authority after taking into account the nature and type of the applying entity’s business operations. The types of business license are as follows:
• Industrial License
• Service License
• Trading License
Who is responsible for Regulating the Fujairah Free Zone?
The businesses operating within the Fujairah Free Zone are regulated by the Fujairah Free Zone Authority (FFZA). The free zone authority is responsible for establishing the requirements related with formation and incorporation of businesses within the FFZ. The authority is also responsible for administering the procedures related with processing of business licenses as well as their renewals, financial as well as operating activities and reporting of companies operating within FFZ.
Benefits Associated with Businesses Operating within the FFZ
Businesses operating within the FFZ are provided with the following benefits:
• Total exemption from personal tax
• Total exemption from corporate tax
• No restriction on repatriation of capital
• 100 percent foreign ownership
• No restriction on hiring foreign employees
• Cost-effective workforce
Reasons for External Audit Service in FFZ
The FFZA requires the registered companies operating within the Fujairah Free Zone to have their operation and accounts audited annually by an approved auditor due to the below mentioned reasons:
• The external audit report provides the free zone authority with the information they need to ensure that businesses operating within the Fujairah Free Zone are showcasing compliance with the laws and regulations established by both the UAE government and the free zone authority.
• An external audit aids the authority by providing it with assurance that the company’s financial statements are compiled, prepared and presented in accordance with the relevant accounting standards and that the company is not involved in any type of fraudulent or illegal activity.
• An external audit report also provides the company’s stakeholders with assurance that information presented and disclosed in the company’s annual financial statements can be relied upon to make strategic business decisions.
• An external audit also provides assurance to the authority as well as the company’s stakeholders with regards to the completeness and authenticity of the information disclosed in the entity’s financial statements.
Approved Auditors in Fujairah Free Zone
Only the audit firms that are approved by the Fujairah Free Zone Authority can perform annual external audits of companies conducting operations within the FFZ. The Fujairah Free Zone Authority has its own standards and processes in place for approving or giving license to audit firms for performing external audits of companies registered in the FFZ. In order for the audit firms to remain in the list of approved auditors in FFZ they must provide evidence to the authority with regards to their staff members updating their knowledge and skills with the changing auditing and accounting standards.
How Nadeem & Umendra can help you?
Nadeem & Umendra Chartered Accountants is an approved audit firm providing external audit and other consultancy services to businesses operating in the Fujairah Free Zone located within the emirate of Fujairah.
We also provide accounting, tax and business consultancy and company liquidation services in the UAE. We have a team of qualified audit and accounting professionals that can help you in managing financial part of your business.