UAE Free Zone Company Accounting and Bookkeeping — Complete 2026 Guide
UAE free zone companies must maintain proper accounting records. Here is the complete 2026 guide on accounting and bookkeeping requirements for UAE free zone companies.
In this guide:
UAE CT Accounting Requirements
- Mandate: All UAE Corporate Tax registrants must maintain accurate financial records
- Retention: Financial records must be kept for 7 years from year-end
- Basis: Accrual accounting basis is required for most companies
- Standards: IFRS or IFRS for SMEs are the recognized accounting standards for UAE CT
UAE VAT Record-Keeping
- Records: VAT-registered companies must keep all tax invoices (issued and received) for 5 years
- Taxable persons: Also keep records of all supplies and purchases
- Digital: Electronic records accepted; must be accessible to FTA on request
What Records Must Be Kept?
- Sales invoices and receipts
- Purchase invoices and bills
- Bank statements
- Payroll records
- Fixed asset register
- Contracts (client and supplier)
- General ledger and trial balance
- Financial statements (P&L; Balance Sheet; Cash Flow)
Do Free Zone Companies Need an Audit?
- UAE CT: Financial statements for CT purposes do not always need to be audited; but must be accurate and complete
- Free zone requirement: Some free zones (JAFZA, DMCC) require annual audited financial statements for licence renewal
- Audit cost: AED 3,000-15,000 for small company audit; depends on auditor and company complexity
Accounting Software Recommendations
- Zoho Books: UAE-compliant; VAT module; affordable; local support
- QuickBooks Online: Widely used; VAT-compliant; good accountant access
- Xero: Popular with accountants; clean interface; multi-currency
- Wave Accounting: Free for very small companies; limited UAE VAT features