Audit in Mainland

All mainland companies must have their financial accounts audited under the UAE Commercial Companies Law Article 27 Chapter 2. Therefore the Directors or Business owners should appoint one or more auditors to audit their financial statements, and the auditors should be licensed auditors registered with the UAE Ministry of Economy.

Article 27 of the law insists that the company’s financial statements should be prepared under International Financial Reporting Standards (IFRS). The government entities need to follow International Public Sector Accounting Standards (IPSAS).

HLB HAMT is a government-approved auditing firm in UAE; therefore, we can perform the audit of all the entities registered with various government agencies and departments on the mainland of the United Arab Emirates.

Our Clients Include:

• Financial Institutions (Banks, Exchange Houses, Investment companies). We are a Central bank-approved audit firm to perform the bank audits and exchange company audits in UAE. We are also approved auditors for banks in UAE for the clients who are having facilities with the banks.
• Listed Entities – Private joint-stock companies, Foreign listed companies.
• Government Companies who are required to be audited under IPSAS.
• Limited Liability Companies, Establishments registered under the Department of Economic Development/Municipality across all Emirates in UAE.
• Non-profit organizations.

The Limited Liability Company (LLC) and a Branch/Representative of a foreign company are the most common and popular business types in the UAE mainland chosen by foreign investors.

Limited Liability Company

The UAE Commercial Companies Law is amended and referred “UAE Federal Law No.2 of 2015”; in both versions, the foreign investors can initially only own up to 49 percent of a company’s share capital. But later, due to the UAE government’s business-friendly policy, various amendments happened In UAE Federal Law No.2 of 2015 to attract foreign investors (FDI), including opening up specific sectors and licenses for 100% foreign ownership.

Generally, the LLCs are not required to have a minimum share capital, although the Department of Economic Development may impose one at its discretion (DED).

Branch of a foreign company

Foreign firms can create a branch company on the UAE mainland under the new CCL. Although a local shareholder is not required for the branch business, the foreign investor must designate a local service agent (LSA), a UAE resident or a firm controlled by UAE nationals.

A business incorporated on the mainland of the UAE is permitted to conduct business across the country. The business house is permitted to conduct business both within and outside the UAE. A minimum office space requirement of 140 sq. ft is required for a UAE mainland firm for actual office space. The legal form of a UAE mainland business determines the minimum capital needed. Mainland businesses must get permission from various government agencies, including the Department of Economic Development, Dubai Municipality, and the Ministry of Labor.

HLB HAMT is a registered auditor in the United Arab Emirates (UAE), whose audit processes are guaranteed compliance with that Federal Law, Central Bank, and SCA requirements. We completely adhere to IFAC and IAASB ISA procedures. These techniques aid in identifying variances between the International Financial Reporting Standards (IFRS) and International Public Sector Accounting Standards (IPSAS) (IPSAS). We encourage our clients to check that their financial statements meet the requirements outlined above.