The demand for auditing services is exceptionally high in the UAE, particularly in Dubai, where businesses can leverage compliance with UAE tax regulations. Understanding the process of obtaining an audit license is crucial for individuals aspiring to work as auditors or establish audit firms in Dubai, United Arab Emirates.
What is an Audit license in UAE?
An Audit license allows your firm to offer auditing services to other companies. This Audit license grants authority to the entities to offer bookkeeping services and conduct audits for companies. The noteworthy factor is that only approved and officially listed auditors are legalized to conduct audit services in the UAE.
What are the Types of Audit Licenses in UAE?
UAE offers major 2 types of audit licenses to meet the exclusive demands of enterprises and industries such as;
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Internal Audit License
Internal auditors evaluate a firm’s core controls, risk management, and authority procedures within companies. Companies that need to conduct an internal audit, have to get this license.
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External Audit License
Auditors can offer autonomous audit services to 3rd-party customers with this kind of license such as;
- Government agencies
- Private corporations
- Non-profit organizations
External auditors are important in evaluating financial records. They help to assure obedience to related laws.
What is the step-by-step process to Get an Audit License in UAE?
The detailed stepwise process to Get an Audit License in UAE is as follows;
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Select your track of business
The first step is to specify your business activity. You can only engage in the prearranged activities such as;
- Auditing services
- Accountancy
- Tax consulting
A company is responsible for facing severe penalties from the UAE if it runs without unveiling its relevant business-related actions on the trade license.
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Choose a tag for the business
The second step requires a little more consideration which is to choose a name for the company. The identification protocols in the UAE are inflexible. Some guidelines while choosing a company name are;
- Avoid using names of well-known brands
- Use unique or irreligious words
- May use Abbreviations
The important factor is that make sure that your chosen name exists for registration. Audit Firms in Dubai experts can help you to comply with the complicated instructions about this step.
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Select a business domain and setup
The next step is to Select a business domain. It means that you have to choose whether you want to start your auditing business or a free zone. There are numerous rewards for both business authorities such as exclusive structures that regulate the company setup such as;
- Free zones offer full authority and possession of your business such as incorporation process and constant business support. Free zones also offer incentives like tax exemptions.
- Mainland setup allows to deal straight and without supplementary measures with the UAE market. Though, it is mandatory to hold 51% of the company’s shares by an Emirati national means that a local sponsor of UAE.
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Apply for your audit license
The most important and core step of the whole process is to finally apply for your audit license. After determining the model setup that highlights your actions, you can continue to submit an application for an audit license. You have to submit an application for a specialized services license directly to;
- DED (Department of Economic Development)
- Or any of the related UAE’s free zones
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Create a business bank account
The last step of the whole procedure before you start trading is you have to open a corporate bank account for your audit firm in UAE.
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Partner with Farahat & Co.….
Partnering with Farahat & Co… is the superlative idea if you want to start an audit firm in Dubai. Our proficient team of experts has the potential to handle every side of your business license application and company establishment.
Conclusion
Obtaining an audit license in the UAE requires a thorough grasp of regulatory requirements, and the process can present various challenges. It is advisable to collaborate with Farahat & Co., as our expert team provides unparalleled expertise and support. We are dedicated to excellence, ensuring a seamless journey through the licensing procedures. Additionally, we have the capability to elevate your company’s financial well-being by upholding the highest standards of accountability.
