Auditors in the DSO (Dubai Silicon Oasis) UAE
If your company is in need of External Audit Firm, look no further, Nadeem & Umendra (NUF) Chartered accountants can work for you as an independent external auditing firm as we are DSO approved auditors who can work to provide shareholders and stakeholders confidence that your business is being run efficiently and in full compliance with laws and regulations.
Our audit process is streamlined and prepared in a manner that complies with all applicable accounting standards and we are licensed by the UAE government and registered in order to provide independent external audit reports.
Dubai Silicon Oasis Authority (DSOA)
DSOA is a 100% government-owned free trade zone launched in 2004 by the Dubai government. It was established following Law No 16 of 2005 of the government of Dubai, with an objective to provide a platform to promote and facilitate modern technology oriented industries. It is located in the city of Dubai near to the Dubai International Airport, Port Rashid and Jebel Ali sea Port. It is the leading electronic innovation and development hub for technology based industries, in the Middle East region.
Dubai Silicon Oasis (DSO) is a technology park with state-of-the-art utility infrastructure featuring electricity, advanced telecommunications and road networks. It also provides a living and working integrated community.
There are specific rules and regulations with which the companies operating within the DSOA free zone need to comply with in order to continue as a licensed business entity in DSOA. There are some additional requirements which the businesses need to comply with when conducting business operations outside the free zone but within the UAE.
Types of Companies/Businesses in DSOA
Business entities that want to operate their business activities within the DSO are first required to establish their legal presence through DSOA and obtain a valid business license with regards to business activities they want to conduct within the DSO. The following are the types of business structures through which an entity can establish its legal presence within the DSO:
1. Free Zone Company (FZCO)
A Free Zone Company in DSO is registered with minimum of two shareholders. Shareholders can either be individuals or corporate entities. The minimum capital requirement to establish a FZCO in Dubai silicon oasis is AED 500,000 (with one share representing AED 100,000). A Free Zone Company in DSO enjoys limited liability status.
2. Free Zone Establishment (FZE)
A Free Zone Establishment (FZE) is a legal entity which can be incorporated by a single shareholder. The minimum capital required to establish a FZE in Dubai Silicon Oasis is AED 1,000,000.
3. Branch of a Local or International Company
Any local or foreign company can register its branch in the DSO free zone. The branch can only conduct activities that are identical with those carried out by its parent company. There is no requirement for minimum capital in relation to registering a branch in the DSO free zone.
Benefits for Businesses Operating in DSO
Companies operating in DSO benefit from the following facilities and features:
• No corporate or personal taxes
• 100% repatriation of capital and profits
• 100% foreign ownership
• Exemption from Import & Export taxes
• Virtual office and warehouse facilities
• State-of-the-art IT infrastructure
• Fast-track business set-up and licensing
• Access to a regional pool of qualified technical professionals
Defining External Audit
An External Audit can be defined as a process in which an independent auditor examines the company’s financial and other business activities and forms an opinion on whether the company’s financial statements reflects a true and fair view of its financial position. The External Audit Report provides an insight to the company’s business operations and financial status. External Auditors are required to be impartial and completely independent of the audited entity.
The primary responsibility of an Auditor is to be independent and also to be seen as independent. In order to be independent auditors along with the audit firm to which they relate must not have any stake or interest in the results of the External Audit Engagement. The Auditor must perform the external audit of companies operating in the DSO in compliance with the applicable international standards on Auditing and regulations. The auditors are required to have complete knowledge and understanding of International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA) along with knowledge about the company’s business activities and the industry in which it operates.
External Audit Requirement in DSO
All companies registered in Dubai Silicon Oasis are required to submit their audited financial statements within four month of the end of their fiscal year. The external audit requirement is an integral component of the process for renewing a business license by companies operating in the DSO free zone.
The purpose of the External Audit requirement is to ensure that companies within the DSO are conducting their business activities in accordance with the rules and regulations established by the Dubai Silicon Oasis Authority. This also provides information to the free zone authority as to whether the financial statements are prepared in compliance with the applicable accounting standards and regulations.
The free zone authority is responsible for protecting the citizens of UAE from inappropriate business practices and operations and the External Audit requirement serves this purpose well.
Who can Provide External Audit Services to Companies in DSO?
Audit firms that hold a valid auditing license and are registered with DSOA can perform an external audits of businesses operating in the DSO free zone. The DSOA maintains a DSO approved auditors list and the audit firms appearing on the list of approved auditors are allowed by the DSOA to provide external audit services to companies operating within the DSO free zone.
In 2014, the UAE laws in relation to requirements for registered DSO Auditors were revised and this resulted in the laws and regulations becoming much more strict and rigid. In order to remain certified, Audit firms are required to provide evidence of their staff participating in continuous development and training programs. As per laws and regulations, businesses operating in the UAE are required to rotate auditors every four years. The Audit firms must comprise of certified and qualified Auditors.
Benefits of External Audit Services in DSO
Apart from assisting in the process of business license renewals there are several other benefits of the External Audit requirement. With a favorable opinion the external audit requirement provides assurance to the company’s shareholders, stakeholders and the free zone authority that the company is properly managed and operating in accordance with applicable rules and regulations.
An External Audit Report with adverse or unfavorable details opinion provides the company’s shareholders and other stakeholders with information as to the inappropriate practices or activities that the company has adopted or is involved in. A favorable audit report provides top level management with a sense of security and improves the company’s chances of gaining loan approval from banks.
How we can help you in Complying with the External Audit Requirement
Nadeem & Umendra Chartered Accountants is a DSO approved audit firm in UAE providing external audit services in the DSO free zone as well as other free zones. Nadeem & Umendra Chartered Accountants is also registered with major banks and financial institutions in the UAE.
Apart from providing audit services, we are also well equipped to provide accounting, company liquidation and tax consultancy services in the UAE. Our objective is to provide our clients with quality services in the field of audits, accounting, business advisory and management consultancy. In order to meet these objectives we have a team of qualified and experienced audit and accounting professionals who are ready to work for you.
Should you need the help of an external audit firm in DSO, other free zones, or mainland please give us a call at +971 50 3958931. Our DSO accredited auditors are ready to work for you!