Accountant in Dubai

Welcome to Euro-Accounting, a chartered accountant’s practice based in London, Paris, Dublin, Geneva and Dubai, led by Shabir Djakiodine.

What sets our firm apart is our linguistic competence. We are polyglots, fluent in 12 different languages.

Within our firm, we are committed to providing quality service to our clients. With our expertise and experience, we can meet the expectations of each client by offering services perfectly tailored to their needs. You will not be disappointed when you discover the range of services we offer.

The founder has won numerous awards, including:

• Outstanding Entrepreneur 2023,
• Best Business Awards 2023,
• Business Person of the Year 2022,
• SME National Business Awards 2022.

He has also been a finalist for titles such as:

• Entrepreneur of the Year 2023,
• Great British Entrepreneur Awards 2023.

Euro Accounting as a firm has won the following awards:

• Diversity, Equality, and Inclusion 2023,
• Best Business Awards 2023,
• Best Accounting & Company Incorporation Service Provider 2023,
• Midlands Enterprise Awards 2023.

And has been a finalist for distinctions such as:

• London Chamber of Commerce 2024 with SME London Business Awards,
• Business International of the Year 2023,
• Commonwealth Business Excellence Awards 2023,
• Employer of the Year 2023,
• SME National Business Awards 2022.

Our goal is to help you optimize your tax situation and comply with your legal obligations. This way, you can focus on developing your business with peace of mind. And today we will explain how accounting works in Dubai.

Accounting in Dubai

The United Arab Emirates has established strict accounting standards, enshrined in their legislation. All companies, regardless of their level, are required to adhere to these standards. This entails maintaining accurate records, managing invoices, and preparing financial reports, all in compliance with international standards.

In terms of business, it is imperative to comply with the UAE Companies Law of 2015. This means that all companies operating in the country, whether in the Mainland or Free Zone, are legally obligated to maintain accurate and comprehensive accounting records. Additionally, this law has set clear standards for all companies, whether large or small. The objective of this legislation is to ensure increased financial transparency and strengthen corporate governance.

Failure to comply with this legislation can result in legal sanctions, highlighting the importance for all commercial entities to adhere to the accounting requirements established by the 2015 law. This law not only ensures legal compliance but also enhances stakeholder confidence and promotes sound financial management in the country.

Different Types of Companies and Activities

Free Zones

The jurisdiction of the free zone allows 100% foreign ownership of a company. This applies to wholesale distribution companies, exporters, storage activities, as well as service providers and manufacturers targeting markets outside the MENA region.

Advantages:

1. 100% foreign ownership authorization
2. No customs duties
3. No restrictions on repatriation of capital and profits
4. This zone is designated for VAT exemption
5. No minimum capital requirement
6. No restrictions on hiring foreign employees

Domestic Economic Zone or Onshore Economic Zone

Companies in this zone have direct access to the markets of the United Arab Emirates as well as the GCC region. Goods produced in the domestic economic zone can therefore be certified as “MADE IN UAE” by the relevant authorities, giving them a duty-free franchise status in the GCC region.

Advantages:

1. Easy repatriation of profits and capital
2. 100% foreign ownership authorization in over 1,100 activities
3. No restrictions on sales in the domestic market
4. Potential for tax-free commerce in GCC countries

The Accounting Rules in Dubai

There are several accounting rules in the United Arab Emirates. We will therefore explain the key principles of this accounting and then describe them in detail.

Annual Audits

Article 27 of the UAE Commercial Law stipulates that a company located in the United Arab Emirates or in free zones must undergo an annual mandatory audit. This annual audit must take place within 3 months following the company’s annual accounts closure. The auditor’s task is to verify the accuracy and clarity of the company’s annual accounts.

Additionally, companies are required to provide an annual activity report that must be audited and verified by an auditor from the Ministry of Finance for trading or service companies, and by the Ministry of Industry for industrial companies. These reports can be used for the company’s license renewal.

Annual General Meeting

Furthermore, every company is obligated to hold an Annual General Meeting within 4 months following the closure of the company’s accounts. During this meeting, the company’s manager or director must present the balance sheet, income statement, director’s or management report, and the auditor’s report.

Corporate Profit Tax in Mainland

Since 2024, companies operating in the Mainland and Free Zones will be subject to a 9% corporate profit tax. This tax is applicable only if the company has profits exceeding AED 375,000. However, there is a threshold of AED 375,000, and it’s important to note that there is no ABS in the United Arab Emirates.

Additionally, it is mandatory to submit an annual tax declaration to the authorities.

VAT Registration

It is mandatory to register for VAT or request an exception in certain cases. Thresholds apply based on the company’s turnover. VAT in the UAE is applied based on the activity and turnover of companies. Here are some possible scenarios:

• Exemption

VAT exemption applies to certain sectors such as real estate, healthcare, education, oil, gas, and transportation.

• Exception

This is applicable to all companies that have activities outside the UAE and do not intend to have any within the country. Since the company does not have a VAT number, it cannot claim VAT recovery on its purchases.

• Voluntary

If your company’s turnover in the last 12 months is above AED 187,000 but below AED 375,000, then VAT application is optional.

• Mandatory

VAT application is mandatory only if your company’s turnover in the last 12 months exceeds AED 375,000. The VAT rate is 5% on sales and services.

UBO Register

Since 2021, it is required to maintain a UBO (Ultimate Beneficiary Owners) register for the company. This involves maintaining two registers: Manager/Register of Nominee Director and Shareholder/Register of Partner for the company.

The Principles of the Tax System in Dubai

The fiscal and legal system in Dubai exempts all companies and resident individuals from capital gains tax, personal income tax, corporate tax, and withholding tax. However, this exemption does not mean that companies are exempt from maintaining their accounts.

Importing Companies

A 5% customs duty is always applicable on all imports into the United Arab Emirates (UAE). All goods imported into the UAE must go through customs clearance, requiring payment of customs duties equivalent to 5% of the value of the goods, in addition to freight insurance costs.

If the importer is unable to pay the customs duties, customs authorities may sell the goods to recover the owed amount.

Oil, production, gas exploration, and petrochemical companies are subject to a 55% tax. Similarly, branches of foreign banks are taxed at a flat rate of 20%.

Regarding real estate transfers, a 4% tax is applicable. This tax must be shared equally between the seller and the buyer. Furthermore, labor legislation requires companies with more than 100 employees to use the “wage protection system,” obtained via the Ministry of Labor.

Free Zone Companies

Free zones are delimited areas located in the United Arab Emirates. They are integrated into DMCC (Dubai Multi Commodities Centre), DWC (Dubai World Central), and JAFZA (Jebel Ali Free Zone) centers.

All companies established in these zones are required to prepare and file audited annual accounts. Currently, this obligation involves submitting the report to the authorities within 90 days following the end of the company’s fiscal year in the free zone. Additionally, DWC requires the submission of a report verified by auditors approved by the free zone authorities as part of the license renewal. Even if the company has not yet commenced operations, shareholders must cover certain expenses such as office rents (if applicable), incorporation fees, consultancy fees, visa fees, visa deposits, and others. These expenses must be declared.

Furthermore, companies in free zones face fines if they do not comply with the financial report verification law. Fines can range from 5,000 AED to 1,400 USD. The main risk for these companies is the non-renewal of their commercial license. However, they can request an extension of the deadline for submitting these reports.

Why Trust Euro Accounting?

Linguistic Versatility

Euro Accounting leverages a major asset: our linguistic versatility. Indeed, our team is proficient in twelve different languages, including English, French, Spanish, Arabic, Hindi, Gujarati, and more. This linguistic diversity enables us to communicate effectively with our international clientele.

Mastering these languages helps us understand the specific needs of each client, facilitating communication and significantly reducing the risk of misunderstandings.

Additionally, our multilingual team consists of competent professionals, each fluent in at least two to three languages. This cultural and linguistic richness makes our firm a preferred choice for businesses operating on an international scale.

In-Depth Knowledge of Taxation

Our team of accountancy experts possesses solid training and experience in managing tax obligations, ensuring high-quality service tailored to the specifics of the local tax system. We assist our clients in all tax-related procedures, whether it’s income tax filings for individuals or tax management for businesses. Furthermore, we have a grasp of the tax intricacies concerning expatriates and non-residents, allowing us to offer personalized and suitable advice. With our expertise and deep understanding of taxation, you benefit from quality support.

Quality Services and Value Addition

Our primary goal is to accompany you in your business development and optimize your accounting and tax management. We are committed to providing superior quality services, thus adding tangible value to our clients. With our experience and expertise in accounting and taxation, we address the specific needs of each business, ensuring that our services are perfectly tailored to your particular context.

Our strengths lie in our proven experience and expertise in accounting and taxation. Furthermore, we offer a comprehensive range of services, including company formation, assistance with bank account opening, accounting management, financial statement preparation, VAT management, international taxation, consolidation, and business plan development.

Indeed, we place great importance on client relations by maintaining transparent and smooth communication to keep you informed at every step of the process.

Expertise and Tailored Services

Our distinction lies in our expertise and ability to offer personalized services. We understand that every business is unique with specific needs. Therefore, we are committed to providing tailor-made solutions that meet your expectations and goals.

Our team of highly qualified and experienced accountants is proficient in handling various accounting and tax situations, from company formation to payroll management, human resources (HR), and consolidation.

Moreover, we stay constantly updated on the latest legal and tax developments to provide you with up-to-date and relevant advice. You thus benefit from precise and clear information.

By choosing Euro Accounting, you opt for a trusted partner who will guide and support you in all your accounting and tax efforts. Our expertise and ability to adapt our services are at your disposal to help you succeed.

Services Offered by Euro-Accounting Accounting Firm

Company Formation

Speed is one of our main advantages at Euro Accounting. We offer a fast creation service, allowing you to start your business quickly. This service is specially designed to simplify your entrepreneurial experience and spare you the complications associated with administrative procedures.

With our expertise, we identify the specific needs of your company and guide you in choosing the most suitable legal structure. Additionally, we take care of all the necessary formalities for your company’s formation, allowing you to focus on developing your business.

Our support does not end with the creation of your company. We are here to accompany you throughout your entrepreneurial journey.

Bank Account Opening

We understand the importance of a bank account for your business, which is why we offer assistance with bank account opening. Our goal is to help you start your business on the right foot.

Opening a bank account can be complex, especially for foreign entrepreneurs. Our team of experts is here to guide you through the process, assisting you step by step and helping you gather the necessary documents while informing you about the required conditions.

At Euro Accounting, our goal is to provide you with comprehensive support. Therefore, we offer assistance with bank account opening to help you manage your finances effectively.

Financial Statement Preparation

Financial statement preparation is a crucial step in managing a business. We offer our expertise to assist you in this process. Our accountancy experts help you develop accurate financial statements that comply with current regulations.

We handle the preparation of the annual financial statement as well as interim statements if necessary. This way, you benefit from regular monitoring of your financial situation, allowing you to anticipate changes and adjust your strategy accordingly.

By choosing Euro Accounting for your financial statement preparation, you opt for peace of mind. You benefit from our team’s expertise and personalized support. Feel free to contact us to learn more about our financial statement preparation and financial reporting services.

VAT Management

VAT is a significant issue for businesses engaging in transactions within the United Arab Emirates. At Euro Accounting, we are here to help you manage this complexity. Our expertise in this area ensures full compliance with tax rules.

Transactions in Dubai or outside Dubai require special attention regarding VAT. It is essential to know the different rates and declaration modalities. Our accountancy experts are at your disposal to guide you through these processes.

VAT management includes identifying relevant operations and verifying invoice compliance. We also assist you in filling out VAT declarations and meeting imposed deadlines to avoid errors and potential penalties.

International taxation is a complex and constantly evolving field. At Euro Accounting, we offer our expertise to help you navigate this realm. Our goal is to assist you in managing your international tax obligations.

Mastering international tax treaties is crucial for businesses operating abroad. Our accountancy experts are here to advise you on applicable rules and best practices, optimizing your tax burden and complying with current legislation.

Consolidation

Consolidation is an essential process for groups of companies with subsidiaries or holdings in other companies. At Euro Accounting, we offer our expertise in this area to help you establish consolidated financial statements that comply with international accounting standards.

We assist you in preparing consolidated financial statements, including the balance sheet, income statement, and cash flow statement, taking into account the specifics of each entity and applicable rules.

Virtual Offices / Domiciliation

Having an address in Dubai is imperative if you own a business, and that’s where we come in by offering domiciliation services. This service provides you with access to a professional address without using your personal address, enhancing your image in the eyes of your clients.

The time savings offered by this solution are significant, allowing you to focus more on your business and increase your revenue. A virtual office also gives you the freedom to choose your company’s location, which is a significant strategic advantage. Furthermore, the flexibility provided by this service facilitates adaptation to market fluctuations.

www.euro-accounting.com

info@euro-accounting.com

Phone: +44(0) 778 986 2405 / +33 (0) 7 56 91 93 32