Not all UAE free zone companies are required to have their accounts audited — but the requirement is more widespread than many business owners realise. Here is a clear guide on UAE audit requirements by free zone and company type.
UAE Free Zones that Require Annual Audit
DMCC: All DMCC companies must submit audited annual accounts within 3 months of their financial year end (mandatory for all DMCC licence holders regardless of revenue). JAFZA: All JAFZA companies must submit audited accounts annually. DIFC: All DIFC companies must submit audited accounts in compliance with DIFC Companies Law (within 6 months of year-end). ADGM: All ADGM companies must submit audited accounts under ADGM Companies Regulations. Dubai Airport Freezone (DAFZA): Annual audit required for all licensees. Dubai Healthcare City: Annual audit required. Dubai South: Annual audit required. DHCC: Annual audit required.
UAE Free Zones where Audit is NOT Generally Required
Shams, IFZA, Meydan, Ajman Free Zone, UAQ FTZ, Creative City Fujairah, RAKEZ (service and trading licences). Note: these free zones may still recommend audits, and UAE Corporate Tax rules may create a de facto audit requirement regardless of the free zone position (see below).
UAE Corporate Tax and Audit
Under UAE CT regulations (effective from FY 2023): businesses with annual revenue exceeding AED 50 million are required to file CT returns based on audited financial statements. Businesses below AED 50M revenue: can file based on certified (but not necessarily audited) financial statements. Practically: if your UAE business has AED 5M+ in revenue, preparing audited accounts for CT purposes is advisable even where the free zone does not mandate it.