Financial Reporting Update - IFZA
In accordance with Administrative Resolution No 001/2025, the International Free Zone Authority (IFZA) has introduced a new requirement for license renewals.
Here's a breakdown of what IFZA licensees need to know:
Mandatory Financial Reporting
Starting September 30, 2025, all IFZA licensees will be required to submit financial statements with their license renewal applications. This new rule aims to increase financial transparency and align with global business standards.
Audited vs. Simplified Financial Statements
The type of financial statement you need to submit depends on your business's size.
Audited Financial Statements are required for companies that meet either of the following criteria for their most recently completed financial year:
Annual turnover exceeding AED 3 million.
10 or more employees.
Simplified Financial Statements are required for smaller companies that have:
An annual turnover of AED 3 million or less.
Fewer than 10 employees.
Key Considerations
Approved Auditors: The audit must be conducted by an auditor registered and approved.
Submission Period: The financial statements should cover the most recently completed financial year as specified in your company's Articles of Association.
Submission Grace Period: If your license renewal is due before September 30, 2025, you are not required to submit financial statements for this renewal cycle. However, you will need to submit them for all subsequent renewals.
Proactive Planning: Financial audits can take time. It's recommended to engage an approved auditor early to avoid delays in your license renewal.
Adhering to these new requirements is crucial to ensure a smooth renewal process and avoid penalties or service suspension.
For further information and assistance please contact us.
