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How to Choose The Best Audit Firms in Dubai – UAE: A Comprehensive Guide
Hiring an audit firm in Dubai transforms your business and makes financial audits more refined. It has been witnessed in recent times that most corporate businesses outsource their audit and accounting-related work to professional companies. It lets them resolve all their audit and accounting issues while helping them to leverage the existing business scenario.

Since audit and assurance is one of the most common parts of any business and involves securing confidential information related to the business’s financial structure, one should be careful while choosing the right audit firm in Dubai.

Outsourcing the support from UAE audit firms, helps your business to manage the work professionally. However, before you seek the support of the best audit firms in Dubai, you need to consider certain aspects. In this blog, let’s dive into the key factors to consider while choosing the best audit firm in the UAE.

Table of Contents
  • Benefits of Engaging with the Best Audit Firms in the UAE
  • Things to Consider While Choosing the Top Audit Firm in Dubai
  • Why Kreston Menon for the Best Audit Services in Dubai?
  • Conclusion
Benefits of Engaging with the Best Audit Firms in the UAE



Read the list below to understand the advantages of hiring an audit firm in Dubai: 

Cost-Effectiveness
With the help of UAE audit firms, you can reduce the cost compared to hiring an accounting firm across any other part of the world. Also, it is cost-effective when you opt for packages with services beyond audit and assurance services like tax consulting, payroll and compliance, business setup services, technology consulting, etc.

Accurate Account Statements
The audit services in UAE help you to secure the profit and loss statements of your business. You need to perform auditing in a pleasant environment to maintain accuracy in the process since it needs to be sharp and focused. Audit firms in Dubai facilitate such an environment with an efficient team. Who has a detailed understanding of the accounting principles?

Follow Compliance with the Accounting Standards
The best audit firm should always stick to the regulations. So this can help you to carry out business transactions, accounting procedures and related paperwork in line with the updated standards and regulations.

Optimal Utilisation of Time
Following the optimal and prompt approach of the audit firm in Dubai, you can reduce the burden of handling all the business activities Together. You can sit back and relax while you seek the help of the audit firm to manage the money transaction to the tax collecting entities and regulators.

Specialised Knowledge 
Audit services in Dubai come with the specialised expertise of a group of experts. The expertise of these accountants and auditors helps your business to manage its finances appropriately. 

Risk and Fraud Protection Measures
The top audit firms in Dubai have the right professionals who can support you in process guidelines meetings, feasibility studies, and every new endeavour such as client discussions, for specialised advice. The approved auditors in Dubai know that you need to take a risk protection approach in the balance sheet to let you get all the above processes done effectively.

Things to Consider While Choosing the Top Audit Firm in Dubai


Audit is an important activity that makes sure that the financial records and statements are accurate and comply with specific rules and regulations. It offers reliability, transparency and accountability to investors, regulatory authorities, stakeholders and shareholders alike. Auditors play a pivotal role in safeguarding financial health and business integrity. Here are the points to consider while considering the best audit firm in Dubai.

Find Auditors in Dubai
The initial step in choosing the best auditing firm is to identify the potential auditors in Dubai. A simplified online search that encompasses keywords like ‘auditors in Dubai’ or ‘audit firms in Dubai’ can offer you many results. You need to consider the expertise, reputation and portfolio of the audit firms in your list.

Research Audit Firms in Dubai
Once you identify a selected list of top audit firms in Dubai, you need to conduct in-depth research. Search for the information that relates to the reliability of the audit firm. Explore the website and testimonials to bring in a sense of client satisfaction and reputation. Compare the size, industry expertise, and specialisation of these auditing firms.

Evaluate Experience & Expertise 
While exploring the best audit firms in the UAE, focus on their expertise and experience. Find the firms that portray a proven record of working with businesses like yours. Check if they have experience serving your industry or have managed similar companies. You should also confirm if the company has expertise in tax planning, compliance, risk management, and internal audit services in Dubai.

Consider the Range of Services Offered 
In addition to auditing, audit firms in Dubai also provide various services. These include financial advisory, financial consulting, tax consulting, audit and assurance, business setup in Dubai, and many more. Analyse your business requirements and determine the additional services which would be beneficial. Go for an audit firm that offers the right support and assistance.

Check Professional Certifications & Accreditations
To make sure that the audit firm follows high professionalism and competence, it is crucial to keep an eye on their accreditations and certifications. Find the auditors who are CAs (Chartered Accountants) or CPAs (Certified Public Accountants), or possess other specific certifications. These demonstrate their know-how and adherence to the standards.

Evaluation of Reputation & References 
Reputation is a must-have factor to consider while choosing an audit firm. Seek recommendations and referrals from reliable sources like industry specialists, business experts and professional networks. Also, get references from the audit firm and connect with their existing clients to earn insights into their satisfaction.  

Review Plans & Pricing Structure
Another significant consideration while choosing the best UAE audit firms is the fee and pricing structure. Request detailed information regarding the pricing model and add additional charges for any service that falls beyond the usual audit. Compare various audit firms and their fees, however, keep in mind that the affordable option might not always provide you the best value for your investment.

Meet potential Audit firms 
Before you arrive at a final choice, you could meet the finalised audit firms in the UAE. This lets you discuss your needs with the experts, ask doubts, and evaluate how well they communicate and respond to your concerns. Measure their willingness to communicate your business requirements and if they offer tailored solutions since a good working relationship forms the baseline for a successful audit. 

Why Kreston Menon for the Best Audit Services in Dubai?


Kreston Menon has been serving businesses in Dubai with a comprehensive package of services including accounting and bookkeeping, VAT services, audit and assurance, tech and financial advisory, payroll and compliance, tax consulting, business setup and restructuring, and many more. Being one of the top audit firms in Dubai, Kreston Menon has approved auditors in Dubai who help your business thrive and grow flawlessly. 

The diligent staff at Kreston also help businesses with internal audit services in Dubai, and various other audit practices including statutory audits, mutually agreed procedures, RERA compliance audits, audit reports, forensic accounting and fraud detection, thus helping businesses maintain top ratings all the time.

Conclusion
Exploring the best audit firms in Dubai should involve serious research as this helps businesses decide on landing the right provider of the best audit services in the UAE. Consequently, it is mandatory to check the key aspects of a company before you hire it for audit-related tasks. 

Kreston Menon is one of the top audit firms in Dubai and a trusted business partner with a team of approved auditors in Dubai who help businesses of all sizes to fulfil their financial goals. To know more about what we do at Kreston Menon, and to avail of our services, contact us!

FAQ
  1. How do I choose an audit firm?
    Choosing an audit firm demands your organisation to look for several key qualities such as the right qualifications, solid reputation, audit process, industry knowledge, and whether it provides technology-enabled audit services.

  2. What do you mean by audit and assurance?
    Audit defines the process of evaluating accounting entries that a company’s financial statement holds. The audit confirms the accuracy of the financial reports. Assurance involves the approach of analysis and assessment of accounting entries and financial records.
     
  3. How much is the audit fee in Dubai?
    As the leading audit firm in Dubai, Kreston Menon offers a feasible audit fee solution to your business. The exact fee can depend upon the type of the firm, however, our team provides high-quantity and accurate audits at the best cost in the market.

  4. How long do audits usually take?
    The timeline of an audit can differ based on several factors. These include internal compliance, access to the records, scope of work, size of data, etc. To know more about your audit process and the estimated timeline, talk to our audit service experts.

  5. Who can perform an audit in the UAE?
    Certified public accountants and public accounting firms can execute audit processes in the UAE. You can engage a professional audit firm like Kreston Menon to manage all your audit needs and offer you the right guidance.
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mis
MIS Report: Definition, Importance, Types, and Examples
An MIS report is a collection of data based on different aspects of a business and is prepared to analyse all the crucial areas of the business. While the primary focus of an MIS report is to analyse the company’s performance and optimise decision-making, it also plays a crucial role in the day-to-day activities of an entity, regardless of the size and niche of the business in question.

As in a sales summary report, all big to negligible data and dealings are recorded in these reports and they are typically generated to help the top-level management make decisions that forever favour the company. This report can also come into the Center stage while identifying pressure points and opportunities of a firm which is variable from firm to firm therefore an MIS report also changes from entity to entity. 

Since decision-making is an everyday task for an entrepreneur, depending on an MIS report is inevitable. Especially if the company in question revolves around big sales, massive job opportunities and multiple clients, the decision-making becomes a huge task that has to be handled with care. This is where an MIS report truly shines. 

In this article, we will explore all the important aspects of MIS reports and analyse how they can help streamline business operations. 

Table of Contents

  • What Does MIS Reporting Stands For? 
  • The Working of an MIS Report
  • Types of MIS Reports 
  • Components of an MIS Report 
  • How to Prepare an MIS Report? 
  • Why Should Companies Depend on MIS Reports?
  • FAQs
What Does MIS Reporting Stands For? 

For a better understanding of an MIS report, the MIS report meaning has to be clearly analysed, and that begins with the MIS full form, which is a Management Information System. The term refers to a set of reports that share a clear view of the everyday activities of an entity which typically helps business owners or the top management make crucial decisions to avoid manual errors in decision-making.

Artificial data collection often ensures accuracy over manual data collection methods especially when it comes to maintaining and analysing business performances. To avoid any mistakes, one has to rely on efficient technologies while understanding what their position in the company is and what the potential threats to their businesses are. This is where the Management Information System becomes crucial for each firm.

The significance of an effective MIS report is far beyond identifying the pressure points and bottlenecks, it also helps organisations engage in daily operations more efficiently. Thus keeping an eye out on the daily operations of an organisation is highly crucial. It is important to analyse them for the better future of the business, and this can be easily done with the help of an MIS report. From easy analytical data to complicated information, including supply chain variables, and market trends, MIS reports simply focus on almost all the key areas that need to be reviewed.


The Working of an MIS Report

The MIS reports are reports designed to help management assess the overall performance of an organisation and allow fast decision-making. While there is no exact process of MIS reporting, there is a common flow that is followed for preparing an MIS report.

Depending on the purpose of why the MIS report is being generated, some businesses collect automated digital data or trending data and analyse them according to their needs. There are also businesses that completely rely on data supplied by their staff members. Such reports are prepared periodically. For example, monthly, quarterly or yearly. They are not always prepared by the same department of a firm rather different departments in a company, bringing diversity. 

After analysing an MIS report, experts can make a conclusion on how profitable a product or an organisation is, and they can also help businesses consider expansion. For instance, if the company is not showcasing growth, then an MIS report can indicate the slow performance and suggest better strategies for the sustenance of the company instead of an expansion.

Some companies only depend on using automatic management information systems to generate MIS reports because they cover all the core parts of the business to pull the required outcome. From the single report, multiple reports can be created based on the needs of the company and the area of focus. If the data collected are error-free, timely, relevant and reliable, the results are expected to be highly informative. It often projects the actual achieved results of the company along with the estimated target, showcasing where the company has to put more effort.


Types of MIS Reports 




Based on the company’s requirements, different types of MIS reports can be created, and some common ones are listed below: 

1. Accounting MIS report
This type of MIS report is typically prepared by analysing different financial documents, such as income statements and profit reports. It is usually used by the financial department of a firm. 


2. Inventory MIS report
It shares relevant data about the inventories in the business, including the number of items in stock, the top and least selling items, etc. 

3. Summary MIS report
With all the information and data regarding the business, a summary MIS report showcases a clear picture of the business’s finances.

Also Read: Documents Required for VAT Registration UAE

4. Profit MIS report
profit reports are concerned with highlighting the difference between the actual and estimated profit generated by a firm. This report also invites attention to the factors that may have led to the profit or loss.

5. Cash flow MIS report
This identifies the exact amount of cash inflow and outflow in the form. It highly involves the cash flows from the core operations of the business as well as from external investments.


6. Exception MIS report
It presents all unusual or abnormal activities taking place within the organisation. This helps identify the problems from the root and rectify them as soon as possible.

7. Management control MIS report
It includes essential information related to the management that can significantly help with decision-making.


8. Production reports
Production reports are typically prepared by the manufacturing department and are primarily created to compare the production targets with the final production count. 

9. Abnormal losses reports
These reports are expected to help companies reduce their expenditure. Here the abnormal losses referred to the losses that are associated with the breakdown of missionary, raw material associated concerns, or natural calamities.


10. HR MIS reports
Such MIS reports are used by the human resource department to carefully analyse the performance of employees in their firm. It calculates the total number of assignments or tasks completed by different employees at a given time.

11. Orders in hand report
These reports are created by the officials in the marketing department after analysing the ratio between the production capacity of the organisation with the orders received for products.


12. Machine utilisation report
This report correctly demonstrates the number of hours a machine was utilised and the number of hours it stayed idle. 

Components of an MIS Report 
Just like there are different types of reports, there are also different formats used by different organisations. The formats may highly depend on the end need of the firm, however, there are some of the key elements that are never missed: 

● Summary
It involves the findings and suggestions that can help decision-makers.

● Performance Indicators
These indicators are used within an organisation to keep a track of the performance of the company. Different indicators are used to analyse the growth in different aspects of the firm and together they help analyse customer satisfaction, sales growth, profit margins, and more.

● Charts and Pies
The collected data are represented in the form of understandable charts, pies, – boards, tables, or bars.

● Customer Data
After conducting numerous customer satisfaction surveys, businesses collect trustable information on customer behaviour and feedback to step up their game.

● Recommendations
This section includes recommendations to make adjustments to the existing business plan.

● Conclusion
The conclusion reinforces the key takeaways, stressing on the implications.


How to Prepare an MIS Report? 

Preparing an MIS report is easy, but involves a few key steps that ensure the report thus formed is useful for decision making. First and foremost, it is important to define the purpose and objectives of the MIS report to let the reader know what kind of analysis has been made and what questions it will answer.

Next comes the collection of data, which is followed by selecting the right metrics and the KPIs. Then comes the analysis of the data, which is extended to presenting the data visually. Subsequently, present the body of the report, and then provide recommendations based on the findings. Lastly, the report is reviewed and distributed among the beneficiaries. By following these key steps, informed MIS reports can be created that may offer added value to the organization. 


Why Should Companies Depend on MIS Reports?

An MIS report can come to the rescue in different ways. For instance, when a company is finding any sort of financial difficulty, analysing the MIS report is all it takes to find where it went wrong. While the big names of the market often depend on MIS reports for the smooth functioning of their business, small businesses do not usually consider generating an MIS.

There are several reasons why an MIS report is inevitable for a firm. Besides, highlighting the key problematic areas, such reports are reliable when making resource and investment decisions. Whenever a firm is thinking of any specific change such as seeking investment or looking for an expansion, an MIS report should be the first document to go through as it holds some of the most dependable initial questions with understandable answers. They also encourage communication within the organisation as well as within the investors, boosting their confidence.

As per some of the accounting firms in Dubai, the following are some of the key benefits that businesses look for while using MIS reports:

▪️It generates accurate reports that can be relied on while making well-informed business decisions

▪️It helps the management systematically collect all the big and small records

▪️MIS reports significantly reduce the complexities of business management

▪️Such reports can help in increasing the efficiency of the workforce, making it easy to track all the dealings, including production, sales, inventory, profit, losses, cash flows, etc.

▪️Goal setting becomes easier than usual

▪️With an efficient MIS report, the management can accurately calculate the actual working hours of the staff as well as the functioning hours of a machine

▪️Eliminates errors that might have occurred during manual entries

▪️MIS reports do the job within the shortest time frame

▪️It ensures the proper flow of information within the organisation

▪️It focuses on specific information rather than stuffing it with unnecessary details

▪️It focuses on specific information rather than stuffing it with unnecessary details


Contact Us - Kreston Menon
FAQs
  1. Who uses MIS reports?
    MIS reports are largely used by large-scale business owners or firms that are on the verge of expanding. However, it is equally important for small-scale businesses to prepare MIS reports to keep track of the day-to-day activities of the firm.

  2. How often should an MIS report be created?
    MIS reports are usually created based on the needs of the organisation. The frequency of a report generation may typically range from daily, weekly, monthly to quarterly, and annually.

  3. How do an MIS report and a financial report differ?
    While both reports are primarily about the business performance of an organisation, the MIS report is a wider concept that focuses on different operational data, whereas a financial report is more concerned with financial performance.

  4. What are the tools used to create MIS reports?
    Several tools can be used among which the most common ones are Microsoft Excel or Google Sheets, Business Intelligence Tools like Qlik and Tableau, ERP systems like Oracle or SAP, and CRM Systems like Salesforce.

  5. What are the setbacks in generating MIS reports?
     Common pitfalls may include timeliness, lack of standardisation, and data overload. 
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audit
How to Get an Audit License in UAE
For an increasingly longer span of time, the United Arab Emirates has positioned itself as a global business hub. Thousands of multinational corporations, startups , and SMEs are setting up their space in the country and financial transparency and accountability are fundamental for them. This has created an increased need for licensed auditors who can offer professional and compliant auditing services and solutions.

Moreover, it has become essential for companies to know about audit licenses in detail and how to obtain them. Before seeking an audit firm in UAE, let’s have a brief look at the essentials. 

Table of Contents

  • What Is an Audit License in UAE?
  • Who Needs an Audit License?
  • Eligibility Criteria
  • Mainland vs. Free Zone Audit Licenses
  • Essential Documents 
  • Maintaining and Renewing the Audit License
  • Common Mistakes to Avoid
  • Why the UAE Is an Attractive Market for Auditors

What Is an Audit License in UAE?

An audit license in UAE is an official authorization that is granted to individuals or firms, enabling them to legally offer audit services. Auditing in the UAE is governed by the Ministry of Economy (MoE), which ensures that auditors adhere to both national and international auditing standards. It allows auditors to conduct financial evaluations, tax assessments, and compliance audits, all of which are crucial for businesses to maintain financial integrity.

The audit license authorizes professionals to provide financial insights and improves the credibility of businesses. This asserts that they follow financial best practices and comply with legal requirements. Obtaining an audit license is a sign that the auditor has been recognised by the government as qualified to offer these specialized services, making it a highly valuable credential.


Who Needs an Audit License?

Getting an audit license in UAE is important if you are planning to:

Start your own auditing firm: 
If you are an experienced auditor or a group of professionals, obtaining an audit license allows you to set up your own practice and offer auditing services to clients.

Offer third-party audit services to businesses: 
Companies often hire external auditors for unbiased financial reviews. You must have an audit license to be qualified to provide such services.

Provide external audit reports for tax or legal compliance: 
The UAE requires businesses to comply with certain legal and tax regulations, and third-party audits are necessary for validating these financial statements.

Be listed as an approved auditor with government bodies or free zone authorities:

Many free zones in the UAE usually have a list of approved auditors. Having a valid audit license is the secret to getting on this list.

Offer financial due diligence services or forensic audits: 

Audit licenses are also needed for specialized audits like mergers and acquisitions (due diligence) or forensic audits, which are important for detecting fraud and financial discrepancies.

Without an audit license, you would not be able to legally operate in the UAE’s auditing industry, and offering these services could result in penalties or legal issues as well.


Eligibility Criteria

To ensure that auditors maintain high standards, the UAE enforces a set of strict eligibility criteria. The UAE government emphasizes having qualified, experienced, and certified professionals in the auditing industry to maintain the integrity of the business environment.


Educational Qualifications

To apply for an audit license, you need at least a bachelor’s degree in accounting, finance, business, or a similar field. However, while a bachelor’s degree is the baseline, having advanced academic qualifications such as a Master’s in Finance or MBA can significantly enhance your credibility and allow you to bypass some experience requirements. A PhD in finance or accounting can even further shorten the work experience duration needed for the license.

Also Read: Documents Required for VAT Registration UAE

Work Experience

The work experience required for obtaining an audit license is based on the highest level of academic qualification you hold:

For bachelor’s degree holders: You must have at least 3 years of practical experience in auditing. This experience should be documented in the form of official employment letters and should cover all relevant aspects of auditing practices.
For master’s degree holders: The experience requirement is now reduced to 2 years. Master’s degrees demonstrate a higher level of specialization and expertise, which is why the experience requirement is more lenient.
For PhD holders: Having a PhD in finance or accounting can reduce the work experience requirement to 1 year.
The work experience must be related to the core areas of auditing, such as financial statement preparation, tax audit services, risk management, and internal control evaluations.


Professional Certifications


Along with academic qualifications, applicants must hold internationally recognised professional audit certifications. These certifications validate an auditor’s skills and play a key role in building credibility with both clients and regulatory authorities. These include:

Certified Public Accountant (CPA): Recognised globally, this certification allows auditors to perform audits for businesses operating in the UAE.
Association of Chartered Certified Accountants (ACCA): This UK-based qualification is recognised internationally and provides auditors with in-depth knowledge of accounting and auditing principles.
Chartered Accountant (CA): Issued by various bodies like the ICAI (Institute of Chartered Accountants of India), this certification is highly respected in the UAE, especially among Indian auditors.
Certified Internal Auditor (CIA): This certification is specifically focused on the internal audit field and is valuable for those offering services such as internal controls and compliance auditing.
Most importantly, applicants are required to pass a qualifying exam administered or approved by the Ministry of Economy, which tests their knowledge of UAE’s auditing regulations, International Standards on Auditing (ISA), International Financial Reporting Standards (IFRS), and the UAE Commercial Companies Law.


Mainland vs. Free Zone Audit Licenses


When applying for an audit license in UAE, you’ll need to choose between setting up on the mainland or within a free zone. This choice will affect the scope of your business operations, costs, and regulatory obligations.


Mainland


Mainland operations are overseen by the Department of Economic Development (DED) of the relevant emirate. For instance, the Dubai DED handles licenses for businesses based in Dubai. With a mainland license, you can provide auditing services throughout the UAE and even deal with government clients. This option is ideal if you are targeting large-scale operations and intend to work outside the constraints of specific zones.

However, mainland licenses tend to be more expensive, with higher office and operational costs. Additionally, mainland companies must adhere to stricter regulations, which can involve more paperwork and approvals from various authorities.


Free Zone

On the other hand, Free zone audit licenses are ideal for smaller firms or individuals. Free zones like the Dubai Multi Commodities Centre (DMCC) or International Free Zone Authorit (IFZA) offer easier registration processes, lower operational costs, and favourable tax benefits. The downside is that free zone-based auditors are typically limited to offering services within the zone unless they acquire additional approvals.

In some cases, free zones don’t require approval from the Ministry of Economy, which simplifies the process. However, a free zone license restricts your ability to operate across the entire UAE, as it limits your client base to those operating within the free zone.


How to Get Audit License in UAE



The process of obtaining an audit license in UAE is simple but requires careful preparation. Let’s look at its steps:

Step 1: Choose the Legal Structure


Before applying for the license, decide whether you will operate as a sole proprietorship, a civil company, or an LLC (Limited Liability Company). Your choice depends on factors such as whether you plan to work alone or with partners, the scale of your operations, and the specific legal requirements.

Sole Proprietorship: Perfect for independent auditors.
Civil Company: Ideal for professional auditors who wish to form a partnership.
LLC: Best for firms that aim to operate on a larger scale.

Step 2: Registration with the Ministry of Economy


Once you have decided on your legal structure, the next step is registering with the Ministry of Economy. This process typically involves creating an online account, submitting documents, passing a qualifying exam, and paying relevant fees. Upon approval, you will be recognised as a licensed auditor within the UAE.

Step 3: Apply for a Trade License


After Ministry of Economy registration, apply for a trade license with the relevant Department of Economic Development (DED). The trade license specifies your business activity and ensures you are authorised to offer audit services in Dubai as well as the entire UAE.

Step 4: Set Up a Physical Office


Having a physical office is a non-negotiable requirement for audit firms. The office must be secure and equipped with the necessary facilities to handle sensitive client information. Virtual offices or flexi-desks do not meet regulatory requirements for audit firms.

Step 5: Meet Ongoing Regulatory Requirements


After you have obtained your license, stay compliant by fulfilling ongoing regulatory obligations. This includes continuing education, timely renewals of your trade and professional licenses, and making sure your firm maintains independence and follows ethical standards.


Essential Documents 

To apply for an audit license, you will need the following documents:

  • Passport copy and Emirates ID
  • Academic certificates (degree, master’s, PhD)
  • Professional audit certifications (CPA, ACCA, etc.)
  • Work experience letter
  • No Objection Certificate (if currently employed)
  • Office lease agreement
  • Passport-size photographs
  • Application forms and Ministry of Economy approvals
  • Verify that all documents are attested and translated into Arabic if necessary.


Maintaining and Renewing the Audit License


Audit licenses must be renewed annually. This process involves submitting renewal applications, updating your professional qualifications (if applicable), and paying the associated fees. Failure to renew on time can result in penalties or suspension of your practice.

Common Mistakes to Avoid

To make the application process smoother and easier, avoid these common mistakes:

  • Submitting incomplete or inaccurate documents
  • Failing to meet the required work experience
  • Neglecting physical office requirements
  • Missing deadlines for renewals or exams

Why the UAE Is an Attractive Market for Auditors


The United Arab Emirates (UAE) has solidified its position as a global business and financial hub, attracting companies from across the world. According to the Abu Dhabi Department of Economic Development, in 2023 alone, over 24,000 commercial sector licenses were issued in Abu Dhabi, contributing to a total capital exceeding AED 210 billion. (ref) This surge in business activity underscores the expanding corporate landscape and the increasing demand for financial transparency and compliance.

The introduction of a 5% Value Added Tax (VAT) in 2018 and a 9% corporate tax effective from June 2023 have further emphasized the need for robust auditing practices (ref). These fiscal reforms have made it imperative for businesses to ensure accurate financial reporting and adherence to international standards such as the International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA). Moreover, the UAE’s futuristic initiatives, including the “We the UAE 2031” vision, aim to improve the country’s position as a global economic hub, thereby increasing the demand for qualified auditors to support sustainable growth (ref).

For audit professionals and audit firms in Dubai, the UAE offers a great market that values financial integrity and governance. The combination of rapid economic development, regulatory advancements, and strategic national visions presents ample opportunities for auditors to play a significant role in the country’s continued success.​

To conclude, securing an audit license in UAE is a valuable step for finance professionals looking to expand their footprint in one of the world’s fastest-growing business environments. The process requires careful planning, keen attention to continuous professional development, and compliance with both local and international standards. By meeting all regulatory requirements and with the assistance of Kreston Menon, you can successfully establish your audit practice in the UAE and capitalise on the growing demand for auditing services.
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VAT
How to Claim a VAT Refund in the UAE: Step-by-Step Guide 2025
Have you come across terms like “Tax Free Dubai” and “VAT Refund Dubai” while visiting or working in the UAE and wondered what it means? Here we explains VAT and the VAT Refund process in the UAE, whether you are a tourist, a business or a resident.

Table of Contents


  • What is VAT in UAE?
  • Who are Eligible for VAT Refund in UAE? 
  • VAT Refund UAE for Businesses | VAT311  
  • VAT Refund for Tourists in the UAE
  • VAT Refund UAE for Business Visitors (VATGRB1)
  • VAT Refund for UAE Nationals Building New Residences (VATGRH1)
  • Why Hire VAT Consultants in UAE?
  • Choosing VAT Consultants in UAE

What is VAT in UAE?


The United Arab Emirates implemented the Value Added Tax (VAT) system on 1 January 2018. VAT is an indirect tax that is levied at a rate of 5% on most goods and services in the UAE.  It is charged at each level of the supply chain and is eventually paid by the end consumer. 


Who are Eligible for VAT Refund in UAE? 


VAT Refund forms must be submitted on the Federal Tax Authority (FTA) website through the EmaraTax portal.

Businesses: Businesses registered for VAT and filing VAT Return in UAE, are eligible for VAT Refund if the input tax or the VAT paid on business expenses is greater than the output tax or the VAT collected from sales during a specific period. They must submit form VAT311 to claim the VAT Refund.
Foreign Businesses: Foreign Businesses can claim VAT Refunds by submitting a specific refund request form, i.e. VATGRB.
Tourists: Tourists can claim VAT Refunds on certain purchases made during their visit to the UAE at designated airports or self-service kiosks before their departure.
UAE nationals building new residences: VAT Refunds can be claimed by submitting a special form, i.e. VATGRH1.
International Organizations, Foreign Governments, & Diplomatic Bodies. 
Also Read: What Are the Different Types of Audit Reports?

VAT Refund UAE for Businesses | VAT311  


Businesses are legally required to charge VAT on the taxable goods or services that they provide to their consumers. Claiming a VAT refund begins with registering for VAT. A business must register for VAT if its taxable goods is greater the mandatory registration limit of AED 375,000. 

Also Read: How To Choose The Best Audit Firms in Dubai – UAE

Eligibility Criteria


Businesses are eligible for VAT refund if they:

Are registered for VAT on the official Federal Tax Authority (FTA) portal.
Diligently maintain authentic records of all VAT-paid transactions.
Pay VAT on all business expenses.
File VAT returns accurately without delay.
Also Read: Documents Required for VAT Registration UAE

Steps to Claim VAT Refund for Businesses


Step 1:  Register on the official FTA portal and create a Taxable Person to begin the VAT registration process. This is done to obtain a Tax Registration Number (TRN).

Step 2: Fill out the mandatory details in form VAT311.

Step 3: Download the VAT Refund Excel template from the official FTA portal and fill it with invoice details related to VAT Returns. Upload it with form VAT311.

Step 4: Accurate records of all taxable supplies and expenses, including invoices issued to customers and received from suppliers and other relevant receipts, must be maintained.

Step 5: The FTA may request further information to verify your claim.

Step 6: VAT Refunds are issued only if the input tax is greater than the output tax. The FTA will process the refund after reviewing the VAT returns.

Also Read: The Three Golden Rules of Accounting

VAT Refund for Tourists in the UAE


Tourists can claim VAT refunds on certain taxable goods purchased in the UAE, excluding goods consumed fully or partially in the UAE & motor vehicles, boats, and aircrafts. Stores that participate in the VAT Refund scheme will provide tourists with a tax invoice that can be used to claim the refund allowing them to take full advantage of “Tax-free Dubai”. 85% of the Value Added Tax (VAT) paid is eligible for refund, subject to a deduction of AED 4.80 for each Tax-Free Tag. The Tax-Free tag and tax invoice must be preserved for validation before leaving the UAE.

Also Read: Business Setup in Dubai: The Ultimate Guide to Company Formation in UAE

Eligibility Criteria


Must be an overseas tourist aged 18 years or older.
Mustn’t be a UAE resident.
Goods must be shipped from the UAE within 90 days of their purchase.
Total purchases made must be no less than AED 250 to qualify for a tax refund.
Stores participating in the Tourist Refund Scheme may issue one of the following types of tax invoices:

A Handwritten Tax Invoice
A Paper Tax Invoice with a Tax-Free Tag
A Paper Tax Invoice with a Digital Tag
A Digital Tax Invoice
Also Read: How to Find TRN Number and Perform TRN Verification in UAE? 

Steps to Claim VAT Refund as a Tourist


Step 1: Take goods to a validation point before checking in luggage (self-service kiosk or manned desk).

Step 2: Show your original travel document (passport or GCC ID). Tax invoices, tax-free tags, and the goods purchased may be subject to inspection at the border checkpoints.

Step 3: Select a refund method—credit/debit card, cash, or digital wallet. Cash refunds are limited to AED 35,000 per tourist; amounts exceeding this require a valid credit/debit card.

Step 4: Track the VAT Refund: Use the Planet Shopper Portal or the Planet Tax Free ME application to track VAT refund transactions. A link will be sent via SMS after the purchase to access these features.

Airport Locations: Abu Dhabi Airport – Common area between all terminals, Dubai Airport – Terminal 1 ,2 ,3, and 3 Business, Al Maktoum, Sharjah Airport, Al Ain Airport, Ras Al Khaimah Airport, and Al Fujairah Airport.

Land Borders: Al Ghuwaifat, Al Hili al Ain, Al Madeef Al Ain, Hatta, and Khatmat Malaha

Seaports: Port Zayed – Abu Dhabi, Port Rashid – Dubai, Port Khalid – Sharjah

Also Read: What is ICV Certificate in Dubai-UAE and How to Get It?

VAT Refund UAE for Business Visitors (VATGRB1)
Foreign businesses (Business Visitors) may be eligible to apply for a VAT Refund of tax paid under certain circumstances. AED 2000 is the minimum amount of VAT eligible for a VAT Refund UAE. 

Also Read: How to Register for Corporate Tax in UAE Using Emaratax 

Eligibility Criteria


Foreign businesses are eligible for a VAT Refund if:

They don’t have a place of establishment or fixed establishment in the UAE.
They aren’t a Taxable Person in the UAE.
They are registered & legally recognized as a business in their home country.
They aren’t conducting business activities regularly.

Steps to Claim VAT Refund for Foreign Businesses


Step 1: Register on the Federal Tax Authority (FTA) portal and create a Taxable Person Account.

Step 2: Go to the VAT section and select the ‘Business Visitor Refunds’ option.

Step 3: Fill in all mandatory fields and attach necessary documents such as:

Original Tax Compliance Certificate
Declaration of Exempt or Non-Business Activities
Tax Invoices
Copy of the Authorised Signatory’s Passport.
Proof of Authority for the Authorised Signatory.
Step 4: Submit the Application: Review and submit the form. A confirmation email will be sent.

Also Read: Top 10 Best Accounting Software UAE – Dubai


VAT Refund for UAE Nationals Building New Residences (VATGRH1)


A UAE National is eligible for VAT Refund only for certain expenses on a newly developed residence for their family. Eligible expenses covered under the refund scheme include:

Building materials & services from contractors.
Specific items such as central air conditioning units, doors & windows, fire alarms & smoke detectors, flooring (excluding carpets), kitchen fixtures & plumbing materials, etc
Non-Eligible Expenses like non-affixed furniture (e.g., sofas, tables), electrical appliances (e.g., cookers, fridges), landscaping (e.g., trees, plants), swimming pools & garden ornaments, cannot be reclaimed.

Also Read: MIS Report: Definition, Importance, Types, and Examples

Eligibility Criteria


• Should be a UAE citizen
• Should hold a Family Book as proof of family status and nationality.
• VAT Refund Request must be submitted within 12 months from the final date of the new residence’s construction.

Steps to Claim VAT Refund for UAE Nationals


Step 1: Register on the Federal Tax Authority (FTA) portal and open a Taxable Person Account.
Step 2: Go to the Special Refunds section and select ‘New Residence VAT Refunds’ option.
Step 3: Fill in all mandatory fields and attach required    documents, such as:

Emirates ID
Family Book
Property Completion Certificate and Building Permit
Property site plan
Proof of land ownership
Bank letter with account details
Step 4: Confirm and submit the form. An email confirmation will be sent regarding the application status. 

Also Read: How to Get an Audit License in UAE

Why Hire VAT Consultants in UAE?


Audit firms in UAE play an essential role, assisting businesses with VAT compliance and refund processes.

Audit firms stay updated on the latest VAT regulations and requirements, which is crucial for ensuring compliance and avoiding penalties.
Audit firms ensure that VAT returns are filed accurately and on time, saving time and reducing hassle. They can easily identify potential deductions and refunds.
Audit firms identify and claim all eligible VAT refunds. This is particularly beneficial for businesses with significant expenses.
Also Read: Corporate Tax UAE: Everything You Need to Know in 2024

Choosing VAT Consultants in UAE


Consider the following key points:

Experience: Consult with audit firms experienced in VAT compliance and refunds.
Reputation: Consult with audit firms that have a good track record and client testimonials.
Services: Consult with audit firms that offer comprehensive VAT services.
Kreston Menon is a renowned VAT Consultant in UAE, providing VAT Consulting services to businesses and individuals with an impeccable experience of 31 years and trustworthy consultants. Kreston Menon provides VAT services in Dubai and across the UAE including VAT Refunds, VAT Advisory, VAT Compliance, VAT Audit and VAT Litigations to meet their clients every need.

A thorough understanding of VAT in the UAE, combined with meticulous records simplifies the process for filing a VAT Return in UAE. Claiming a VAT Refund in Dubai can be a smooth and stress-free experience with the right support and knowledge. Stay updated on the latest regulations and seek professional assistance if needed.
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UAE Announces Tax Update 2025: Key Changes Businesses Must Know
The United Arab Emirates (UAE) has introduced a series of corporate tax rule changes set to take effect in 2025. These updates are part of the nation’s efforts to align with global tax standards while maintaining an attractive business environment. The changes are particularly important for companies operating in or planning to enter the UAE market, and compliance will be critical going forward.

UAE Announces Tax Update as part of its broader corporate tax reforms that began in 2023. This marked a significant policy shift in a country long known for its tax-free environment. Federal Decree-Law No. 47 of 2022 outlines the UAE’s corporate tax system, imposing a 9% tax on income that goes beyond AED 375,000.

The 2025 updates build upon the existing framework, introducing several refinements aimed at enhancing transparency, preventing profit shifting, and complying with international tax practices such as the OECD’s Base Erosion and Profit Shifting (BEPS) Pillar Two requirements.

The blog ‘UAE Announces Tax Update 2025: Key Changes Businesses Must Know’ outlines the key aspects of the

UAE tax update, along with a keen focus on the most relevant modifications that businesses should understand.

Table of Contents
  • Key Changes in Corporate Tax UAE for 2025
  • Domestic Minimum Top-Up Tax (DMTT)
  • Corporate Tax for Free Zone Businesses
  • Mandatory Corporate Tax Registration in the UAE
  • Revised General Anti-Abuse Rules (GAAR)
  • Compliance Requirements for Businesses
  • Exemptions and Reliefs
  • Implications for Businesses in the UAE
  • Stay Ahead with Kreston Menon
Key Changes in Corporate Tax UAE for 2025
Domestic Minimum Top-Up Tax (DMTT)
One of the most significant inclusions in the 2025 UAE tax update is the Domestic Minimum Top-Up Tax (DMTT), effective January 1, 2025. This measure targets multinational enterprises (MNEs) with annual global revenues exceeding €750 million, falling under the OECD Pillar Two framework.

  • Applicability
The DMTT is relevant for MNEs with consolidated global revenues of €750 million (approximately AED 3 billion) or above in any two of the previous four financial years.

  • How it works
If an MNE’s effective tax rate in the UAE falls below 15%, the DMTT increases the tax liability to reach this minimum threshold.

  • Impact
This change affects MNEs benefiting from lower tax rates or incentives, requiring them to reassess their tax strategies and reporting processes.

Actually, this move is part of the UAE’s focus on global tax reforms and will impact how MNEs structure their operations in the region.


Corporate Tax for Free Zone Businesses
Free zones remain a significant part of the UAE’s business scenario, providing tax incentives to attract investment. Under the new tax rules, free zone businesses can still qualify for a 0% corporate tax rate, but strict conditions apply:

Qualifying Free Zone Persons (QFZP)
From activities carried out within the free zone or with companies based outside the UAE. Income generated from transactions with the mainland UAE could be subject to the usual 9% tax rate.

Substance Requirements
Free zone entities must demonstrate a physical presence and conduct core income-generating activities locally.

Free Zone companies should now review their operations to check if they still meet the necessary criteria to enjoy tax exemptions.


Mandatory Corporate Tax Registration in the UAE
The UAE’s tax update 2025 mandates corporate tax registration with the Federal Tax Authority (FTA) for all taxable entities. This requirement applies to:

Mainland businesses
All companies involved in commercial, industrial, or professional activities

Free zone businesses
This includes those eligible for the 0% corporate tax rate.

Individuals
People earning more than AED 1 million per year from business must register by March 31, 2025.

Foreign entities
Companies with a fixed presence or establishment in the UAE.

Non-compliance carries penalties of up to AED 10,000, making timely registration critical for all businesses under the corporate tax in UAE.


Revised General Anti-Abuse Rules (GAAR)
As part of the latest tax updates in the UAE, the Federal Tax Authority (FTA) is continuing to strengthen the General Anti-Abuse Rules (GAAR) outlined in Article 50 of the Corporate Tax Law. These rules are designed to stop the misuse of the tax system through deals that don’t have real commercial purpose and are mainly done to gain tax benefits.

GAAR permits the FTA to recharacterize or disregard transactions that are determined to have been entered into with the main purpose of obtaining tax benefits, without a valid business rationale. Common cases include:

  • Dividing business activities to become eligible for small business relief.
  • Structuring related-party transactions solely to reduce taxable income.
The FTA evaluates such arrangements based on:

  • Economic substance
  • Timing and financial effect
  • Consistency with the intent of tax legislation
If the FTA identifies that a transaction was undertaken primarily for tax avoidance, it may adjust the taxable income accordingly or deny tax benefits such as deductions or exemptions.

Also Read: Documents Required for VAT Registration UAE

Compliance Requirements for Businesses



Audited Financial Statements
The UAE tax rule reforms require businesses to maintain audited financial statements compliant with International Financial Reporting Standards (IFRS). This applies to:

  • Taxable entities filing corporate tax returns whose turnover exceeds AED 50 million.
  • Qualifying Free Zone Persons
However, all other entities are required to maintain financial statements that are compliant with International Financial Reporting Standards (IFRS).

For accurate tax reporting and avoiding penalties, proper financial records are essential.


Expansion of Transfer Pricing and Documentation Requirements

Transfer Pricing (TP) continues to be a crucial aspect of the corporate tax framework in the UAE, and the 2025 updates introduce more defined thresholds and compliance obligations.

Under the updated rules, UAE-based businesses engaged in transactions with related parties or connected persons must adhere to OECD-aligned TP principles, particularly the arm’s length principle, ensuring that all intercompany transactions reflect fair market value.


TP Documentation:

The following entities are required to prepare and maintain comprehensive TP documentation:

  • Multinational Enterprise (MNE) groups with consolidated global revenues exceeding AED 3.15 billion must submit a Master File and Local File in accordance with OECD guidelines.
  • UAE companies with local revenue over AED 200 million also need to follow these documentation rules.
These files must provide detailed disclosures on the nature of intercompany transactions, pricing methods, and financial analyses supporting arm’s length compliance.


Tax Residency Certificate in the UAE
The tax residency certificate UAE has gained notable significance with the introduction of corporate tax. Issued by the Ministry of Finance, it confirms whether an individual or business is considered a tax resident in the UAE.

Purpose: A TRC helps businesses make use of double tax agreements, prevent being taxed twice, and show proof of residency to overseas tax authorities.
Eligibility: Applicants must maintain a physical presence and conduct business activities in the UAE.
For companies with international operations, obtaining a TRC is a strategic step in tax planning.


Exemptions and Reliefs

The UAE Corporate Tax Law provides specific exemptions and relief measures to support economic activity and minimize the tax burden on certain sectors and entities.


Government Entities and Public Benefit Organizations
Entities that are wholly owned and controlled by the government and engaged in sovereign or public functions are fully exempt from corporate tax. In addition, public benefit entities such as charities and nonprofit organizations can also qualify for exemption, subject to approval and registration with the Ministry of Finance.


Natural Resource Businesses
Businesses involved in the extraction of natural resources (oil, gas, and minerals) are taxed at the emirate level and remain exempt from federal corporate tax. However, they must still comply with federal tax registration and reporting obligations if they conduct non-extractive activities.


Small Business Relief
To support startups and SMEs, the UAE offers Small Business Relief under Article 21. Businesses with revenues not exceeding AED 3 million per annum in the current and preceding tax periods can elect to be treated as having no taxable income. This relief is applicable until December 31, 2026, and is intended to reduce compliance obligations for small-scale enterprises.

Businesses are encouraged to evaluate eligibility for these exemptions or reliefs as part of their annual tax planning to optimize their tax liability and administrative load.


Implications for Businesses in the UAE
The UAE announces new tax rules for 2025, creating both compliance demands and opportunities for strategic tax optimization.

Increased Compliance Burden
The introduction of the Domestic Minimum Top-Up Tax (DMTT), mandatory tax registration, and expanded Transfer Pricing requirements necessitate a more structured approach to corporate tax. Businesses must invest in internal systems, ensure proper documentation, and seek qualified tax advisory support to avoid penalties.

Free Zone Compliance
Free Zone companies must meet all criteria to qualify as Qualifying Free Zone Persons (QFZPs) to continue benefiting from the 0% corporate tax rate. Any non-qualifying income may be taxed at the standard 9%, increasing the need for clear segregation of income streams.

Global Tax Alignment
With the UAE implementing BEPS Pillar Two measures through the DMTT and strengthening GAAR provisions, multinational enterprises (MNEs) must reassess their structures, especially where global consolidated revenues exceed €750 million.

Proactive tax governance is now essential to remain compliant and tax-efficient.


Stay Ahead with Kreston Menon 
The UAE’s tax environment is changing, and staying updated is important than ever. You need a partner who understands both the local rules and the bigger global picture. That’s where Kreston Menon comes in. Being the top provider of corporate tax services in Dubai, we help you keep up with the latest tax reforms and make confident, right decisions for your business. Mainly, we support you with:

  • Corporate tax registration: We will handle your registration process from start to finish, and thus, you will meet all FTA requirements.
  • Corporate Tax Compliance and Return Filing: We help ensure you meet all corporate tax requirements, including calculating your tax and submitting accurate returns. 
  • Tax residency certificate (TRC) assistance: When you need a TRC to benefit from the UAE’s double tax treaties, we will guide you through the process.
  • Transfer Pricing assessment and benchmarking exercise: We assist you with the assessment of Transfer Pricing Compliance of the related party transactions and also perform a benchmarking exercise.
  • Transfer pricing documentation: We help you prepare master and local files that meet OECD standards and satisfy FTA expectations.
  • Advisory on Free Zone and DMTT compliance: Our experts will assess your business model and make sure that you qualify for available tax benefits.
And a lot more…

If these changes feel a bit too much, don’t worry, Kreston Menon’s experts are here to help you make sense of it all.
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Ultimate Beneficial Owner (UBO) Verification: The Complete Guide
Did you know that, according to the United Nations Office on Drugs and Crime, between 2–5% of global GDP, roughly $800 billion to $2 trillion, is laundered every year?

One of the biggest reasons this continues to happen is the misuse of anonymous corporate structures. In many cases, the people behind a company remain hidden, making it difficult for authorities and regulators to track illegal financial activity. That is exactly why the concept of the Ultimate Beneficial Owner (UBO) has become so important.

In simple terms, UBO verification is about identifying the real person who ultimately owns or controls a business. It is a global requirement tied closely to AML (Anti-Money Laundering) efforts, tax transparency, and financial integrity.

As we look into the definition, key requirements, international standards, and best practices for verifying your UBO in this blog, ‘Ultimate Beneficial Owner (UBO) Verification: The Complete Guide’, you can stay compliant, avoid penalties, and build lasting trust in your business operations because, understanding UBO regulations and complying with reporting obligations has now become nothing less than essential.

Table of Contents
  • What is an Ultimate Beneficial Owner (UBO)?
  • Why is UBO Verification Important?
  • Global Context: UBO International Standards
  • UBO Regulations in the UAE: What You Should Know
  • What Information Is Required for UBO Verification in the UAE?
  • How Do You Determine Who the UBO Is?
  • UBO and AML Compliance: How They Are Connected?
  • Consequences of Non-Compliance
  • UBO in Free Zones vs. Mainland: What’s Different?
  • Common Challenges in UBO Verification
  • Best Practices for UBO Compliance
  • What’s Next for UBO Rules?
  • What is an Ultimate Beneficial Owner (UBO)?
To put it in simple words, a UBO (Ultimate Beneficial Owner) is the individual who truly owns or has control over a company, either directly or through other means. They might not always appear on official documents or company profiles. Sometimes, their ownership is hidden behind layers of entities or legal arrangements. But if someone holds 25% or more of the shares or voting rights, or has significant influence over decisions, that is typically who we are talking about. So, identifying the UBO helps to make sure that businesses aren’t being misused for things like fraud, money laundering, or tax evasion.


Why is UBO Verification Important?


When ownership isn’t transparent, it is easy for illegal activity to slip through the cracks. That is why UBO verification matters so much.

Authorities, banks, and regulators rely on UBO details to:

  • Track down suspicious financial activity
  • Enforce anti-money laundering (AML) regulations
  • Ensure tax and legal accountability
  • Maintain trust in the financial system
    For businesses, UBO compliance also builds credibility. It shows that you are operating cleanly and transparently.

Global Context: UBO International Standards
UBO verification is part of a global move to make business ownership more transparent. Several international bodies have set the tone for UBO transparency, and here are a few you should know about:

1. FATF Recommendations
The Financial Action Task Force (FATF) is an international organization that sets global rules to help prevent financial crimes. One of its key recommendations, which is Recommendation 24, asks countries to make sure they have up-to-date and accurate UBO data that can be shared with competent authorities when needed.


2. EU AML Directives
The European Union has taken strong steps too. The 5th and 6th Anti-Money Laundering Directives (AMLD) push for clear rules around beneficial ownership, including the creation of public UBO registers.


3. OECD Guidelines
The OECD has also emphasized transparency, especially in relation to tax compliance. Their guidelines support UBO reporting to help combat things like base erosion and profit shifting.

So, if your company operates internationally, or even just deals with international clients, you’ll need to align with these frameworks.

Also Read: Documents Required for VAT Registration UAE

UBO Regulations in the UAE: What You Should Know
The UAE has made significant updates to its regulatory framework on Ultimate Beneficial Ownership (UBO) to improve corporate transparency and align with global compliance standards. The most recent and currently applicable regulation is Cabinet Decision No. (109) of 2023, which replaces the earlier Cabinet Decision No. (58) of 2020.

This updated resolution places a stronger emphasis on accurate disclosure, data maintenance, and clear identification of the real individuals who ultimately control or benefit from a business.


Key Requirements Under Cabinet Decision No. (109) of 2023
Under this resolution, all relevant companies in the UAE are required to:

  • Keep a record of the beneficial owners with complete and accurate information.
  • Keep the register updated, and any changes must be reflected promptly.
  • File this information with the Registrar, who is responsible for maintaining a centralized UBO database.
The objective is to provide consistent and reliable access to beneficial ownership data, which supports anti-money laundering efforts and helps authorities detect misuse of legal entities.


Who Needs to Comply?
Most companies that are registered in the UAE need to follow the UBO rules. The major among them are:

  • Mainland companies that are registered under the Department of Economic Development (DED)
  • Free zone entities, including those operating under free zone authorities such as IFZA, DMCC, JAFZA, etc.
  • Limited Liability Companies (LLCs)
  • Private and Public Joint Stock Companies
  • Branches of foreign companies

Who Is Exempt?
Certain entities are exempt from these regulations, such as:

Companies wholly owned by federal or local government bodies

Entities incorporated in financial free zones, such as:

Dubai International Financial Centre (DIFC)

Abu Dhabi Global Market (ADGM)

These zones follow their own independent regulatory frameworks and disclosure systems.


What Information Is Required for UBO Verification in the UAE?
The key information and the needed documents are:

  • Valid identification: Obtain a government-issued identity document such as:
– Emirates ID

-Valid passport

-UAE driving license

-Any other official government ID

  • Shareholding details: Clearly identify the share percentage or control structure that qualifies the individual as a UBO (e.g., direct ownership, indirect ownership, or control by other means).
  • Screening and background checks: Conduct mandatory screening to determine whether the individual:
  • Is listed on any international or local sanctions lists
  • Is a Politically Exposed Person (PEP) or involved in high-risk financial activities
  • Supporting documents: Depending on the ownership structure, you may also need to submit corporate documents or agreements that demonstrate how the UBO holds control or ownership.
Note: If there is any change in UBO details such as ownership structure, identity, control, or more, it must be updated with the Registrar within 15 days of the change.


How Do You Determine Who the UBO Is?
Identifying the UBO can be tough when there are multiple layers of ownership involved. But here is a simplified brief:

Start with Direct Ownership
If a person directly holds 25% or more of the company’s shares, they are considered the UBO.

Consider Indirect Control
If the ownership is through another company, trust, or legal arrangement, and the person still ends up with 25% or more, they also count as the UBO.

Control by Other Means
If no one meets the 25% rule, look for someone who has significant control, maybe through decision-making powers or contractual rights.

Fallback Option
If you still can’t identify a UBO, then the person holding the highest management position (like a CEO or Managing Director) is considered the UBO.


UBO and AML Compliance: How They Are Connected?
UBO verification is an important part of making sure a business follows anti-money laundering (AML) rules. It is part of the broader Know Your Customer (KYC) process, which financial institutions and regulated entities must follow.

By identifying UBOs, businesses can:

  • Better assess the risk  of money laundering or financial crime
  • Avoid doing business with shell companies or blacklisted individuals
  • Ensure they meet international reporting obligations
    For banks and financial services, UBO checks are a regulatory requirement during onboarding and continuous monitoring.

Consequences of Non-Compliance
If a company fails to meet the requirements, the penalties can include:

  • Fines
  • Business license suspension or restrictions
  • Reputational damage
  • Increased regulatory scrutiny
The authorities in the UAE are actively checking for compliance, and random inspections are not that uncommon.

UBO in Free Zones vs. Mainland: What’s Different?
Even though the basic rules are the same, the steps and timelines for UBO registration may differ between mainland and free zone areas. Each free zone authority (e.g., IFZA, DMCC, DAFZA) may have specific compliance procedures and platforms for submitting UBO data. So, businesses operating in multiple jurisdictions must have consistency and compliance across all licensing authorities.


Common Challenges in UBO Verification
Here are a few challenges many companies run into:

  • Complex ownership structures that span multiple countries
  • Reluctance from stakeholders to disclose personal details
  • No central register for beneficial ownership across jurisdictions
  • Lack of in-house compliance expertise
If your business deals with any of these, getting help from a professional can save you a lot of time with full compliance.

Best Practices for UBO Compliance
If you want to ensure full compliance, here are a few steps recommended by the experts at Kreston Menon:

  • Do regular internal reviews of ownership structures.
  • Train your team on local and international UBO rules.
  • Use proper documentation and keep records up to date.
  • Invest in tools or software for ownership mapping and tracking.
  • Consult with experts, especially for group structures or cross-border entities.
    Getting ahead of the regulations now can help you avoid bigger issues down the line.


What’s Next for UBO Rules?
UBO regulations are expected to tighten in the coming years, both globally and in the UAE. Authorities are aiming for:

  • More automation in reporting
  • Greater public access to UBO data
  • Enhanced cooperation between jurisdictions
So, if your business hasn’t put a proper UBO process in place yet, wait no longer; now’s a good time to start.

To conclude, identifying and reporting your Ultimate Beneficial Owner (UBO) is important as it meets regulatory requirements, thereby strengthening your company’s reputation and reducing risk. And when integrated properly, ultimate beneficial ownership and AML compliance can work hand-in-hand to protect your business from legal, financial, and operational trouble.
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