DDA Compliance - Submission of the latest Annual Financial Statements
Final Filing Period ends on - 30 November 2022
Why Submission of the Annual Financials Statements ?
Submission of the Annual financial Statements is an essential requirement to achieve compliance with the applicable Federal and Local laws, in particular the laws regarding Anti-Money Laundering and Combatting Financing of Terrorism, Economic Substance, and tax laws.
The requirements of the Audited Financial Statement for an FZLLC are provided in Regulations 63- 68 of the Private Companies Regulations of 2016.
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63. Maintenance of Accounting Records
64. Duty to Prepare Company Financial Statements 65. Financial Statements to be Laid Before General Meeting 66. Right to Receive Copies of Financial Statements 67. Appointment of Auditor 68. Audit |
What about a comapny which is incorporated in the year 2022 ?
The Company which has been newly registered and didn't complete its first financial year is required to provide the Audited Financial Statement within six months from its first financial year-end.
In normal course the filing period for the annual financials statements is 6 months from the end of the financial year of the respective company.
Where the latest Annual Financial Statements should be submitted ?
The Company is required to submit the duly filled Financial Statements Report Summary Sheet along with the Audited Financial Statement via the AXS portal within the Final Filing Period.
What is the final filing Period ?
Final Filing period refers to the period on or before 30 November 2022 ( the deadline as specified by the DDA for the purposed of the submission of the Financial Statements Report together with the Summary Sheet as per the DDA Circular No. 421)
In normal course the filing period for the annual financials statements is 6 months from the end of the financial year of the respective company.
Is the Submission of the latest Annual Financial Statements : Mandatory or voluntary ?
The Submission of the Annual Financial Statements in now a Mandatory obligation. The requirements of the Audited Financial Statement for an FZ-LLC and Branch are explained in DDA Circular No. 421, Dated September 19, 2022.
We at Gupta Accountants, could assist yourselves with the Annual Audit (Annual Financial Statements) as well as other Corporate Compliance Obligations in the UAE.
We could also assist yourselves with the preparation, review and closing of the Books of Accounts or/and Compilation of the Annual Accounts, required for the purpose of the Annual Audits) for the financial year ending 31 December 2021/ 31 March 2022/ 30 June 2022/ 30 September, 2022 (or as applicable to your Company).
Licenses type FZ-LLC Company and Branch Company based in the listed below free trade zone, are now required to submit the Audited Financial Statement along with the Summary Sheet on or before 30 November 2022.
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What is a Financial Year ?
Financial year is a period of 12 months with the exception of the first financial year of the company, which could be from a minimum of 6 months to a maximum of 18 months. Most of the companies opt for the January xxxx - to December xxxx as financial year in general, more popularly known as the year ending 31 December xxxx. Some companies do follow the odd, financial year ending such as 31 March xxxx, 30 June xxxxx and 30 September xxxx.
What is an Audited Annual Financial Statement ?
Audited Annual Financial Statement consist notebly among other of the followings :
- AUDITORS’ REPORT
- STATEMENT OF PROFIT /( LOSS) ACCOUNT
- BALANCE SHEET
- STATEMENT OF CASH FLOW
- STATEMENT OF CHANGES IN EQUITY
- NOTES TO THE FINANCIAL STATEMENTS
- COMPANY INFORMATION
- COMPARATIVE FIGURES FOR THE PREVIOUS YEAR (IF ANY)
What it means : The Submission of Audited Financials and Summary Sheets ?
Submission of Audited Financials and Summary Sheets for the Latest Financial Year is an obligation on the DDA based entities like FZ-LLC Companies and Branch Companies. Submission of the financials is to be made on the AXS Portal on or before 30 November 2022. It should also be noted that from the next financial year the submission must be made within 6 month from the end of the relevant financial year of the respective companies based in DDA.
What if the company is newly incorporated ?
The Company which has been newly registered and didn't complete its first financial year is required to provide the Audited Financial Statement within six months from its first financial year end.
What about the Branch (office) Company ?
A branch (office) Company may either, choose to submit the consolidated Audited Financial Statement of its parents, or a stand-alone extract of the financials of the branch office operation only.
Link to DDA Circular 421, Dated September 19, 2022
