Hamriyah Free Zone (HFZ), which is in the emirate of Sharjah, is a manufacturing hub and one of the best free zones in the UAE thanks to its favourable business policies, connectivity to the other six emirates, and effective regulatory measures, which include requiring financial audits from registered auditors with the Hamriyah Free Zone Authority for the companies (HFZA).
The Hamriyah Free Zone (HFZ) draws more than USD 3 billion in foreign investments, which attests to the success of the free zone authority’s regulatory procedures. According to these rules, the HFZA has mandated that all free zone establishments within the Free Zone have their books of accounts audited by a registered independent auditor. This ensures that the business environment within the HFZ is tightly regulated and managed. The effective regulatory measures taken by the HFZA are evident in the efficient operations of the businesses operating in the Free Zone.
Companies should use registered audit firms in the UAE as the HFZA won’t accept audit reports from auditors who aren’t registered with them.
About Hamriyah Free Zone (HFZ)
The HFZ is well situated in Sharjah, the third-largest emirate in the United Arab Emirates after Abu Dhabi and Dubai. Known for its educational institutions and vibrant history, Sharjah has been named the Cultural Capital of the Arab World by UNESCO. Offices, warehouses, and top-notch manufacturing are available for rent in the HFZ. Businesses located in the HFZ operate in a number of different industries, such as heavy industry, logistics, and transportation, oil & gas, petrochemicals, packaging, steel, recycling, food, textiles, perfume & cosmetics, and more. Together with the aforementioned industries, the HFZ also permits services like banking and auditing businesses, money exchanges, conference rooms, staff housing, etc.
Contact Approved Auditors in HFZA at @ +971 45 570 204 / Email Us : [email protected]
Why Are Audits Performed by Authorized Auditors Required in HFZ?
Due to the following factors, HFZA mandates that businesses operating in the HFZ have an independent external auditor assess their books of accounts:
Businesses that hold HFZA licences must ensure that they are operating in accordance with all applicable laws, including the Anti-Money Laundering (AML) legislation and those of the Federal Tax Authority (FTA) and Free Zone Authority.
The top management of the company is reassured that there is no financial misconduct being concealed from the authorities by having the books of accounts audited by an external auditor in the UAE. The HFZ Authority accords the audited books of accounts produced by an external auditor in the UAE the utmost importance.
The external audit performed by the auditors is strongly relied upon by the HFZ authority and the stakeholders of the company because they can base important business decisions on the audit report.
The audit report verifies that the company’s accounts are prepared in line with local and international accounting standards. To have their books of accounts audited, businesses in the UAE can use the services of reputable external auditing agencies.
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Documents Needed for the Audit by the Approved Auditors in HFZA: AML Consultation Economic Substance Reporting Business Liquidation Trademark Registration
- Balance sheet, profit and loss statements, and trial balance
- Plans for audits (depreciation, bad debt provisions, accruals)
- Information on closing stock and work in progress at year’s end
- With the appropriate supporting information, details of fixed asset additions and disposals during the year
- Bills and invoice copies
- Association Memorandum (MoA)
- governing documents (AOA)
- Recent registrations for trade licences VAT and Excise Tax Information (If Applicable)
Contact Approved Auditors in HFZA at @ +971 45 570 204 / Email Us : [email protected]
Services for Books of Accounts Auditing in HFZ
The Hamriyah Free Zone Authority has approved KGRN Chartered Accountants. International Financial Reporting Standards are followed by the audit, which is carried out by KGRN’s team of highly skilled auditors. To make sure that the books of accounts give a true and fair picture of the company’s financial situation, have them audited by KGRN’s licenced auditors. In a nation with strict regulations, like the UAE, it is essential for businesses to have the trust of stakeholders, clients, and the free zone administration.
Companies in the Hamriyah Free Zone have relied on the auditing services of KGRN Chartered Accountants for years to prepare and deliver the audit reports to the authority on time. With years of experience helping customers comply with rules, KGRN auditors can ensure the expansion and stability of their clients’ enterprises.
What should businesses do to prepare and maintain their accounting records for auditing?
Every business operating within the HFZ must maintain accounting records that accurately and fully explain the company’s financial situation. The company’s directors must have access to a properly maintained account to ensure that the balance sheet and profit and loss accounts are prepared in accordance with International Financial Reporting Standards (IFRS).
A record of must be kept in the books of accounts.
Day-to-day entries of all money received and spent, together with the factors that led to such transactions, are included in the company’s assets and liabilities.
The company’s registered office in the HFZA must maintain the accounting records. The company’s shareholders or their representatives must always be able to see the books of accounts. The initial financial year should be determined by the businesses operating in the HFZA based on the date of establishment as stated on the Certificate of Incorporation.
Contact us at @ +971 45 570 204 / Email Us : [email protected], and one of our HFZA approved auditors will provide you with a free one-hour consultation.
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