Audit Services for Businesses Registered in the Hamriyah Free Zone
Hamriyah Free Zone (HFZ) is an industrial hub for manufacturing companies operating in the United Arab Emirates (UAE). The process for establishment of the said free zone was initiated through an Emiri decree issued in 12 November 1995. Located in Sharjah, It is one of the fastest growing free zones in the United Arab Emirates due to its connectivity with the other emirates, favorable business policies, efficient regulatory measures including requirement of financial audit for registered companies from HFZA approved auditors. The aim of Hamriyah Free Zone is to be dynamic and flexible to accommodate businesses operating in different industries while maintaining its status as an investor friendly free zone.
Hamriyah Freezone Sharjah provides businesses with an opportunity to perform their operations in a tax free environment with full company ownership, exemptions from repatriation of capital and profits as well as all other commercial charges.
Each free zone in the UAE is administered by a local authority that is responsible for regulating all the business entities that are operating their business activities within the free zone areas. The purpose of such an authority is to make sure that the environment for businesses within the free zone is well regulated and controlled. Hamriyah Free Zone Authority, the regulator of this particular free zone, regulates and monitors all the Hamriyah free zone companies.
Types of Business Licenses in HFZ
The HFZ provides business entities with four types of licenses to operate within the free zone. The license is given to an entity depending on the nature and of type of its operations. The types of licenses offered to Hamriyah free zone companies are as follows:
- Commercial License
- Industrial License
- Service License
- General Trading License
Benefits Associated with Operating in HFZ
Hamriyah Free Zone provides business entities conducting operations in the free zone with the benefits mentioned below:
- Total exemption from income, corporate, import or export taxes
- 100% foreign ownership
- No restriction on repatriation of profits and capital
- Cost-effective workforce
- Renewable long term lease
- Onsite accommodation for labour
- Onsite custom facilities
- Modern infrastructure
- Pre-build offices and warehouses
- Low cost energy
- Access to seven meter deep inner harbor and fourteen meter deep port
Why a Financial Audit is Required in Hamriyah Free Zone?
Hamriyah Free Zone Authority (HFZA) requires each business operating within the free zone to appoint an independent auditor appearing in the list of HFZ approved auditors to report to the shareholders on the financial as well as the operational aspects of the business and state whether the financial statements give a true and fair view and are prepared in accordance with the applicable laws and regulations.
As per the laws and regulations prevalent in HFZ, the annual financial statements of the company must be approved by the directors and signed by or on behalf of the directors.
Push Digits Chartered Accountants is among one of the auditors that have been authorized by HFZA to conduct audit of companies registered in HFZ. Our auditors have very relevant and in-depth experience to perform audits for HFZ registered companies. We have proven record to complete these audits fairly quickly and efficiently provided minimum required documents are provided to our team.
Hamriyah Free Zone requires annual audit reports due to the following reasons:
- An external audit report provides the Free Zone authority with all the information they need and require to ensure that businesses are complying with all the applicable laws and regulations.
- The audit report provides assurance that the company’s financials are complete and that no information is being concealed from the authority.
- An audit report from an independent auditor provides reasonable assurance to all the stakeholders including the Free Zone authority that the company’s financial statements are accurate and can be relied upon to make important business decisions.
- Financial audits provide assurance to the authorities that the entity’s financials have been prepared in accordance with the applicable accounting standards and that business is not engaged in any illegal or fraudulent activity.
Only the audit firms that are approved by the HFZA can carry out external audits of businesses operating in the HFZ. In order to remain on the list of HFZ approved auditors, the audit firms are required to provide evidence to the Free Zone authority regarding their employees having updated knowledge with regards to the changing accounting and auditing standards.
Documents Required for External Audits in the Hamriyah Free Zone
Specific Documents which are required by the auditors in hamriyah free zone are as follows:
- General Ledgers
- Trial Balance
- Balance Sheet
- Profit and Loss Statements
- Details of fixed asset additions and disposals during the year with proper supporting
- Audit schedules (bad debt provisions, depreciation, accruals)
- Details of closing stock including working in progress at the year end
- Copies of invoices and bills
- Articles of Association (AOA)
- Memorandum of Association (MoA)
- Registration Details for Excise Tax and/or VAT (If Applicable)
- Latest Trade License
Why Choose Push Digits Chartered Accountants?
Push Digits Chartered Accountants is recognized as a reputed audit and accounting firm in the UAE. We are known for providing quality audit as well as accounting services. We have a team of highly qualified and experienced audit, accounting and tax professionals having sound knowledge of laws and regulations applicable in the Hamriyah Free Zone as well as the rest of the UAE.
We are committed towards providing our clients with services that not only help in maximizing efficiency and effectiveness of their business operations but also help in identifying and resolving issues that are stopping them from achieving their true potential.
Apart from external audit services we also provide the following services:
- Company registration and incorporation services
- Accounting and bookkeeping services
- VAT accounting services
- Legal consultancy
- Internal audit services
Top 5 Frequently Asked Questions (FAQS):
Q1: Is audit mandatory for businesses operating in the Hamriyah Free Zone (HFZ)?
A: Yes, audit is mandatory for all the businesses operating in the HFZ especially those that are preparing for trade license renewal.
Q2: Who can perform external audit of businesses conducting operations in the HFZ?
A: Only the audit firms that are approved by the Hamriyah Free Zone Authority can perform external audit of businesses operating in the HFZ.
Q3: Are you an approved auditor in the HFZ?
A: Yes, Push Digits Chartered Accountant is an HFZ approved auditor.
Q4: When and how an external audit report should be submitted to the HFZA?
A: Registered businesses in the HFZ are required to submit the audited financials to the HFZA within 90 days from the end of the fiscal year.
Q5: Do you provide audit and bookkeeping services only in the UAE?
A: No, we provide audit and bookkeeping services all over the world. We have presence in six continents of the world.