Rais Al Khaimah Economic Zone (RAKEZ) is located in the emirate of Rais Al Khaimah and is considered as one of the largest financial zones established in the United Arab Emirates (UAE) that offers customizable solutions to registered free zone and non – free zone businesses. The strategic location of RAKEZ offers companies registered within the economic zone an opportunity to access the markets of Central and southern Asia, Europe, northern Africa, and many Middle East countries. Currently, RAKEZ hosts more than 14,500 businesses from over 100 countries. RAKEZ is one of those economic zones that constantly work towards providing the best opportunities and services to businesses set up in the Free Zone and the Non – Free Zone Area.
RAKEZ is administered by a local authority that is responsible for establishing laws and regulations for businesses to comply with when carrying out business activities both in the Free Zone and Non – Free Zone areas. In RAKEZ, the authority that is responsible for controlling and regulating the business environment is known as the Ras Al Khaimah Economic Zone Authority (RAKEZ Authority). The great work of the authority is attracting tons of companies to set up companies in RAKEZ
The authority’s jurisdiction extends to the Non – Free Zone Area as well as the Free Zone Area for Non – Free Zone Entities and Free Zone Entities respectively.
One of the key requirements from the RAKEZ registered businesses is to get their accounts audited by RAKEZ approved auditors. Push Digits Chartered Accountants is one of the RAKEZ approved audit firms for financial auditing services. Our physical and virtual presence in all the continents of the world provides you access to the world-class knowledge base and experience which you only get in a Big 4 audit firm.
Types of Entities in RAKEZ
The types of entities that can be registered in RAKEZ are as follows:
- Free Zone Entity: a limited liability entity, or a branch, registered within the free zone area. Such an entity would be required to obtain a license from RAKEZ authority to operate within the free zone area.
- Non – Free Zone Entity: a limited or unlimited liability business entity, or a branch registered in the Non – Free Zone Area. Any entity wanting to operate in the Non – Free Zone Area would not only be required to obtain a license from the authority but also from the Department of Economic Development in Rais Al Khaimah (RAK DED).
Types of Business License
Business entities wanting to register in RAKEZ are required to obtain a license issued by the RAKEZ Authority. The categories of business license available in the free zone area in RAKEZ are as follows:
- National Industrial License
- Industrial License
- Service License
- Commercial License
- General Trading License
- Educational License
- E-Commerce License
- Media License
- Freelance permit
- Individual/ Professional License
Types of business licenses available for businesses wanting to operate in the Non – Free Zone Area are as follows:
- Commercial License
- Industrial License
- Professional License
Reasons for External Audit of Businesses Registered in RAKEZ
As per rules and regulations prevalent in RAKEZ, businesses registered within the economic zone are required to submit financial statements audited by RAKEZ approved auditors. The fulfillment of the said requirement is integral for businesses to renew their license which will allow them to continue their operations within the economic zone.
The RAKEZ Authority requires each business entity operating within the RAK economic zone to appoint an independent audit firm to report to the shareholders on the financial and operational aspects of business and state whether the financial statement gives a true and fair view and have been prepared in compliance with the applicable rules and regulations. The auditor is also required to report whether a business entity is undertaking any activity apart from the ones which its license permits.
The RAKEZ Authority requires businesses registered in RAKEZ to have their financial statements audited on an annual basis by an auditor appearing in the list of RAKEZ approved audit firms for the following reasons:
- An audit report provides the authority with all the details and information they need to make sure that businesses in RAKEZ are complying with the applicable rules and regulations.
- A statutory audit provides assurance to the Authority that financial statements of businesses registered in the economic zone have been prepared in compliance with the relevant International Accounting Standards and International Financial Reporting Standards.
- An audit report provides assurance to the authority that the financials of an entity are accurate and complete and that no information has been concealed from the authority.
- An audit report from a RAKEZ approved auditor also provides assurance to an entity’s stakeholders that information disclosed and presented in the financials of the said business can be relied upon when making important strategic business decisions.
Documents Needed for an External Audit in RAKEZ
Documents that are needed to carry out the audit are listed below:
- General Ledgers
- Trial Balance
- Balance Sheet and Profit and Loss Statements
- Details of closing stock including working in progress at the year-end
- Details of fixed asset additions and disposals during the year with proper supporting
- Bank Statements
- Audit schedules (bad debt provisions, depreciation, accruals)
- Registration Details for VAT and Excise Tax (If Applicable)
- Copies of invoices and bills
- Articles of Association and Memorandum of Association
- Latest Trade License
Why Push Digits Chartered Accountants?
Push Digits Chartered Accountants is a reputed accounting and audit firm operating in the UAE. We are approved by RAKEZ to perform statutory audits of businesses operating in the economic zone.
Push Digits Chartered Accountants is known for providing quality audit, accounting, and tax services all across the globe. We have a team of highly qualified audit professionals that have years of experience in auditing business entities operating in different industries. Our professionals also have sound technical knowledge of laws and regulations applicable in the free zones as well as the mainland UAE.
Our exceptional staff is keen to work with you side by side to commence and conclude your audit by crossing all the hurdles (if any) together.
Frequently Asked Questions
Q: Is an external audit mandatory for businesses registered in RAKEZ?
A: Yes, an external audit is mandatory for all the businesses registered in RAKEZ.
Q: Who is eligible to perform statutory audits of businesses operating in RAKEZ?
A: Only audit firms that are approved by the RAKEZ Authority are eligible to perform financial statements audit.
Q: Are you a RAKEZ approved auditor?
A: Yes, Push Digits Chartered Accountants is a RAKEZ approved audit firm that is eligible to perform external audits of companies/branches operating in Ras Al Khaimah Economic Zone.
Q: Do you only operate in the UAE?
A: No, we have offices in six continents and provide accounting, audit, tax, and other consultancy services in countries like UAE, Australia, UK, Singapore, Pakistan, India, and many others.