UAE Free Zone Company Accounting and Bookkeeping Requirements 2026
All UAE free zone companies must maintain accounting records. With the introduction of UAE corporate tax, bookkeeping requirements have become more important. Here is the 2026 guide.
In this guide:
UAE Corporate Tax Accounting Requirements
Under UAE CT Law, all UAE companies (mainland and free zone) must:
- Maintain financial records for a minimum of 7 years
- Prepare financial statements in accordance with International Financial Reporting Standards (IFRS) or IFRS for SMEs
- Maintain records sufficient to support the CT return
Do UAE Free Zone Companies Need an Audit?
Audit requirements vary:
- DMCC: Annual audit mandatory for all DMCC companies
- DIFC: Annual audit mandatory for most DIFC entities
- IFZA: Audit not mandatory but financial records must be maintained
- SPC Free Zone: Audit not mandatory
- UAE CT: Audited financial statements required for companies with revenue exceeding AED 50 million (threshold as of 2026)
Accounting Records You Must Keep
- Invoices issued (sales invoices)
- Invoices received (purchase invoices and receipts)
- Bank statements (business bank account)
- Payroll records (if employees)
- Fixed asset register (if applicable)
- Contracts and agreements
- Correspondence relating to business transactions
Recommended Accounting Software for UAE Free Zone Companies
- QuickBooks Online: Most widely used by UAE SMEs; UAE VAT-compliant
- Xero: Popular with international founders; UAE VAT-ready
- Zoho Books: UAE-specific VAT features; Arabic language support
- FreshBooks: Good for service businesses and freelancers
- Wave Accounting: Free option for very small businesses (limited UAE VAT support)
Cost of UAE Free Zone Company Accounting
Typical annual accounting costs for UAE free zone companies:
- Self-service (owner does bookkeeping): AED 0 (software cost AED 1,000-3,000/year)
- Bookkeeping service (monthly): AED 500-1,500/month (AED 6,000-18,000/year)
- Annual accounts compilation (no audit): AED 2,000-5,000
- Full annual audit: AED 5,000-15,000 (for DMCC/DIFC-required audits)
- UAE CT return preparation: AED 2,000-8,000 per filing