Taxation and Accounting Processes for Free Zone Companies in Dubai

The ever-evolving legal and compliance landscape in the UAE has sparked extensive discussions with the introduction of the new UAE Corporate Tax (Dubai/UAE CT) and administrative corporate tax compliance framework. Both regional and global economies are closely monitoring this development, factoring the UAE corporate tax rate into their calculations. Despite still being among the lowest rates, the introduction of this new tax regime represents a significant leap forward compared to the previous system, affecting various aspects of businesses, from pricing and marketing to accounting procedures, documentation, and IT infrastructure. In this context, businesses operating in the UAE, whether Offshore or Onshore, should carefully analyse the impact of the Corporate Tax on their operations, including cross-border activities and legal entity structures, and ensure full compliance with the new Corporate Tax requirements. At this point, effective corporate tax advisory services come into play, providing crucial support to help businesses navigate the complexities of the new tax environment and strategically plan from the outset to achieve the best possible outcomes.

Accounting Management for Free Zone Companies in Dubai

Accounting in Dubai refers to the scientific and systematic recording and summarizing of transactions based on accounting standards. Preparing financial statements and presenting them to management for decision-making is an inevitable part of accounting. For the taxation and accounting processes of free zone companies in Dubai, our experts provide professional support on accounting tasks and tax services. World Company Setup plays a dynamic role in successfully running your business with accounting management for your free zone company. However, as a business owner, you may not have enough time to complete your accounting work as you need to concentrate on other things, or you may not be an expert in the field of accounting.

A Free Zone refers to free trade areas that encourage foreign business ownership. Businesses in free zones must comply with the rules and regulations of the free zone authority to conduct any business in that area. According to UAE Law, free zones are called Designated Zones. The following conditions meet the definition for designated zones according to the criteria in Article 51 of the Executive Regulations:

It is a specific fenced geographical area.

Security measures and Customs controls are in place to monitor the entry and exit of individuals and the movement of goods into and out of the zone.

It has internal procedures regarding the method of keeping, storing, and processing goods within the zone.

The Designated Zone operator must comply with the procedures set by the Free Trade Agreement.

Therefore, free zones that meet the above conditions and are on the Cabinet's list will be considered Designated Zones.

The Importance of Accounting for Free Zone Companies

World Company Setup can focus on your accounting tasks for your free zone company, leaving you free to focus on core areas. They ensure your accounts are fully compliant. They also save you time by preparing your tax returns and payroll. Here are the reasons why a free zone company should adopt an accounting system:

To meet the VAT regulations and mandatory financial requirements imposed by the FTA
A good financial record is required to renew the trade license
To conduct regular internal audits
To track import and export financing
To deal with sales outside the designated zones

World Company Setup UAE Dubai Accounting Services

As an accounting and audit team, we provide quality accounting services to free zone companies in the UAE. Our experts can assist you with timely data management, analysis, and financial statement preparation. Our expert can help you choose the right accounting software and a cloud-based system for easy access.

Our services include:

Accounting and Bookkeeping Services in Dubai

To set up an accurate accounting system for your business, you need to maintain the following information systematically. We help you sort the data as follows:

Assets and liabilities: Assets and liabilities must be clearly maintained for the preparation of financial statements. All receivables and payables should be paid on time.

Expenses and income: Expenses in the production process and income from sales should be kept in separate ledgers.

Cash: Frequent reconciliation of bank and cash balances is necessary for financial stability.

Business Consulting Services in Dubai

Business consulting services in Dubai emphasize creating strategies for the success and growth of a business. Consultants are a community of business coaches, mentors, and accountants. They study past trends and combine them with forecasts, asking questions to help clients understand the full picture of their business. Consultants correct and prevent errors in businesses and help bring success to the enterprise.

Internal Audit Services

The World Company Setup team recognizes that an effective internal audit service can make a very positive contribution to risk management and the smooth operation of the business. World Company Setup provides its clients with the following services in the field of Internal Auditing: calculating risks, implementing control tests, monitoring operations, and recommending corrective actions in the review.

CFO Services

As part of accounting services, a better understanding of your business's cash flow is essential. We provide professional guidance for your business's planning and forecasting and assist in the preparation of MIS reports, as well as providing training and support to your accounting staff.

VAT Consulting Services

Tax payment is mandatory for every business in the UAE because this revenue is used for the country's development. Tax accounting services ensure that companies and individuals comply with tax laws by filing tax returns. World Company Setup provides consulting on Tax Accounting and prepares balance sheets and reporting documents on a tax basis. We deal with tax risks and filing tax returns.

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Taxation and Accounting Processes for Free Zone Companies in Dubai

World Company Setup is a leading provider of corporate tax advisory services, accounting, taxation, and consulting services in Dubai, United Arab Emirates. Our team of experts will guide you through the complex laws and regulations of the UAE, including corporate tax, VAT, excise tax, accounting and bookkeeping, ESR, financial consulting, ERP, and more.