JAFZA Audit Requirements: Everything Businesses Need to Know
Having a company in Jebel Ali Free Zone (JAFZA) opens doors to opportunities. You get access to global trade routes, flexible business policies, and tax benefits. But one area many companies struggle with is compliance, especially when it comes to audit compliance.
Many business owners fail to realise that not following the audit rules in JAFZA can lead to heavy fines and even the non-renewal of trade licenses. This happens mostly because owners are unaware of the laws and regulations, or don’t prepare their accounts properly.
Understanding the JAFZA audit framework helps ensure smooth license renewals, compliance with regulations, and a solid reputation for financial transparency — especially with the guidance of Jitendra Chartered Accountants (JCA), a JAFZA approved audit firm in the UAE.
Why Is Audit Mandatory in JAFZA?
The Jebel Ali Free Zone Authority makes it compulsory for every registered company to have its financial statements audited each year. This rule is part of the JAFZA Implementing Regulations 2016.
The purpose is simple — to ensure businesses maintain accurate financial records and operate transparently. An annual audit provides assurance that:
- The company’s accounts are prepared in line with accepted accounting standards.
- The financial statements present a true and fair view of its financial position.
Failure to submit an audited financial report can result in:
- Inability to renew your trade license, and
- Potential penalties or restrictions on your business activities within JAFZA.
Choosing an Approved Auditor in JAFZA
JAFZA maintains a list of approved auditors, and companies are required to appoint auditors from this official list. Only firms licensed by the Dubai Department of Economic Development (DED) are eligible to be on this list.
Jitendra Chartered Accountants (JCA) is a JAFZA-approved auditing firm qualified to perform statutory audits for companies operating in the Free Zone.
Responsibilities of Approved Auditors in the UAE
Approved auditors in JAFZA play a critical role in ensuring financial accuracy and regulatory compliance. Their main responsibilities include:
- Verifying that the company’s accounts are prepared in accordance with International Financial Reporting Standards (IFRS).
- Confirming whether the financial statements present a true and fair view of the business.
- Highlighting any non-compliance with relevant laws or regulations.
- Reporting any irregularities, discrepancies, or financial concerns discovered during the audit.
The final audit report serves both the company and the JAFZA Authority, assuring that the entity’s financial affairs are transparent and well-managed.
Submission of Audited Financial Statements
Companies must submit their audited financial statements to JAFZA within 90 days after the end of their financial year.
If additional time is required, a formal extension request must be submitted and approved by JAFZA before the deadline.
How to Submit the Audit Report:
- Log into the Dubai Trade Portal.
- Go to “Registration” → “Submit Financial Statement – Approval.”
- Upload the audited financial statements and summary sheet.
- The original report will be collected by courier for verification.
Late submission can delay license renewal and result in fines.
Documents Required for the Audit
Before starting the audit, companies must prepare and share key financial documents with their approved auditor, including:
- Bank statements for the financial year
- Bank, customer, and supplier confirmations
- Copies of invoices and supporting bills
- Memorandum & Articles of Association (MoA/AoA)
- Valid trade license copy
Providing complete and accurate records ensures a faster and smoother audit process.
Importance of External Audits in JAFZA
An external audit is more than a regulatory formality; regular external audits offer several strategic advantages:
- Builds trust and credibility with banks, investors, and regulators
- Facilitates loan approvals and investor funding
- Detects fraud, errors, or inefficiencies early
- Helps qualify for tax incentives and Free Zone benefits.
These advantages make the audit process a valuable tool, not just a legal formality. Consult our expert auditors at JCA for such audits.
Regulations for JAFZA External Auditors
As per Regulation No. 1/99, companies must appoint auditors exclusively from the JAFZA-approved list.
The board of directors is required to sign off the final audited financial statements — including at least one director’s signature on the balance sheet.
A copy of the signed annual accounts and auditor’s report must then be submitted to the Free Zone Company Department within three months after the fiscal year-end.
How Jitendra Chartered Accountants (JCA) Can Help
Meeting JAFZA’s audit and compliance requirements doesn’t have to be complicated.
As a JAFZA-approved auditing firm, Jitendra Chartered Accountants (JCA) ensures that your company’s books are accurate, compliant, and ready for timely submission.
Our audit experts help you:
- Prepare IFRS-compliant financial statements
- Conduct efficient statutory audits
- Ensure smooth license renewals
- Avoid penalties or delays