Audit Requirements in RAKEZ: Everything You Need to Know
Operating a business in the Ras Al Khaimah Economic Zone (RAKEZ) offers numerous benefits — from tax advantages and cost-effective setup to access to global markets. However, one key responsibility that many business owners tend to overlook is the annual audit requirement.
At first, skipping an audit might not seem serious. You might think, “We’ll do it later.” But when that “later” comes, it’s often too late; fines, penalties, or even license suspension may follow.
With the right preparation and understanding of RAKEZ rules, staying compliant is possible and keeps your company credible and strong.
With the expert support of Jitendra Chartered Accountants (JCA), a RAKEZ-approved audit firm, you can ensure full compliance, avoid penalties, and maintain accurate and transparent financial records.
Why Audits Are Mandatory in RAKEZ
Under RAKEZ regulations, all licensed entities — both Free Zone and Non-Free Zone companies — must prepare and submit audited financial statements every year.
The main goal behind this requirement is transparency. RAKEZ mandates audits to ensure that companies present a true and fair picture of their financial health and follow proper accounting standards.
Key points to remember:
- The audit must be conducted by approved auditors in RAKEZ, not just any registered audit firm.
- Audited financial statements must be submitted within six months after the financial year-end.
- Failure to comply may result in a fine of AED 2,500, and repeated delays could affect license renewal.
Who Can Conduct Audits in RAKEZ
Only firms listed as RAKEZ-approved auditors are authorised to perform statutory audits.
These approved auditors ensure that:
- Financial statements are prepared in line with International Financial Reporting Standards (IFRS).
- The accounts reflect a true and fair view of the company’s financial position.
This system helps prevent accounting manipulation, enhances accuracy, and promotes trust between businesses and the RAKEZ Authority.
When and How to Submit Audited Financial Statements
All companies in RAKEZ must submit their audited financial statements within six months from the end of their financial year.
For example:
- If your financial year ends in December, the submission deadline is June 30 of the following year.
To avoid last-minute stress:
- Start preparing early. Update your accounting records, reconcile bank accounts, and organize supporting documents.
- Work closely with your approved auditor to ensure timely completion and submission.
Audit Requirements for Newly Incorporated Companies
For newly formed companies, the timing of the first audit depends on the date of incorporation.
As per RAKEZ’s Memorandum of Association, the financial year runs from January to December, but the first accounting period may be shorter or longer — anywhere between 6 to 18 months.
Examples:
- A company incorporated in July 2024 may prepare its first audited report by December 2025.
- A company set up in June 2024 will close its first year in December 2024, covering only seven months.
This flexibility allows new businesses to align their audit cycles with the standard calendar year.
Penalties for Missing the Audit Deadline
Failure to submit audited financial statements on time may result in:
- A fine of AED 2,500 for late submission.
- Possible license suspension or delays in renewal for repeated non-compliance.
Consistent non-compliance can also impact your company’s reputation and ability to conduct business within RAKEZ.
Documents Required for a RAKEZ Audit
Before the audit begins, ensure that all key financial records are prepared and available. The main documents include:
- Bank statements for the financial year
- Bank, customer, and supplier confirmations
- Copies of invoices, bills, and receipts
- Credit and debit notes
- Memorandum and Articles of Association (MoA & AoA)
- Latest trade license copy
- VAT and excise registration certificates (if applicable)
- Complete set of accounting records and ledgers
Having these ready helps auditors complete their work efficiently and without delays.
Role of Approved Auditors in RAKEZ
RAKEZ-approved auditors perform a comprehensive review that goes beyond checking financial statements. Their key responsibilities include:
- Examining accounts in compliance with IFRS.
- Evaluating internal controls to identify weaknesses.
- Ensuring compliance with Anti-Money Laundering (AML) and Counter Terrorist Financing (CTF) regulations.
Their findings not only support compliance but also help management improve financial governance and risk management.
How to Prepare for a Smooth Audit
To ensure your audit process is seamless and stress-free, follow these practical steps:
- Select the right audit firm: Choose a RAKEZ-approved auditor experienced in your industry.
- Maintain updated financial records: Use reliable accounting software to keep your books accurate.
- Automate reconciliations: Minimise manual errors and save time.
- Review internal controls: Identify and address weaknesses before the audit begins.
- Start early: Begin audit preparation at least three months before your submission deadline.
Common Challenges Companies Face
Many businesses in RAKEZ encounter similar issues when it comes to audit compliance:
- Tight timelines for record preparation
- Lack of dedicated accounting staff
- Changes in audit or compliance regulations
Partnering with a professional, approved auditor can help overcome these challenges, ensuring compliance and accuracy.
How Jitendra Chartered Accountants (JCA) Can Help
Timely audits not only ensure compliance but also enhance your business’s credibility.
As a RAKEZ-approved audit firm, Jitendra Chartered Accountants (JCA) provides professional audit services designed to help your business stay compliant, organized, and financially transparent.
With JCA, you can:
- Meet all RAKEZ audit deadlines
- Avoid fines and penalties
- Strengthen your financial reputation
- Ensure your books comply with IFRS and UAE regulations
Stay compliant and confident with JCA — your trusted RAKEZ-approved auditors in the UAE.