13/05/2024
Here are some answers to the most frequently asked questions:
Should I keep financial records in the UAE if the company is registered in the Free Zone and doesn't pay VAT?
The UAE Commercial Companies Law No. 2 contains general accounting and reporting requirements for all commercial companies registered in the UAE, including those registered in Free Zones. Financial and tax accounting obligations are specified in several articles of this law, including:
1️⃣Article 26: This article states that each company shall maintain accounting records showing its transactions as per the provisions of this Law. Each company shall maintain its accounting records for at least five years as from the company's fiscal year end date
2️⃣Article 27: This article states that every company shall prepare annual financial accounts. The company is also required to retain a copy of its annual financial statements for 5 years.
3️⃣Article 28: This article states that each company must submit its annual financial statements to the Ministry of Economy within 3 months after the end of the fiscal year.
4️⃣Article 34: This article states that each company is obliged to fulfill its tax obligations as required by UAE law.
✅Thus, although companies registered in Free Zones are not required to pay VAT, they still need to keep financial records and file reports in accordance with the requirements of the UAE.
