AUDIT SERVICES FOR HAMRIYAH FREE ZONE REGISTERED COMPANIES
Hamriyah Free Zone (HFZ) is one of the biggest free zones located in the city of Sharjah and the United Arab Emirates. It was established in the year 1995 and is one of the rapidly growing free zones in the UAE. The unique geographic location of the Hamriyah Free Zone (HFZ) along with the time zone advantage backed by a secured and fully-convertible currency and multi-access to global countries through land, air and sea makes the said free zone one of the best to conduct business operations in the UAE.
The HFZ is fast becoming as one of the cornerstones of industrial development in the UAE. The objective of the Hamriyah Free Zone is to be as flexible and dynamic with regards to its operations as possible in addition to being an investor-friendly free zone.
Hamriyah Free Zone allows businesses to conduct their operations in a tax free environment with full company ownership, exemptions from all commercial levies and repatriation of capital and profits. In addition to world-class facilities including executive offices, factories, and warehouses.
Each free zone located in the UAE is governed by a local authority that is responsible for regulating the businesses conducting business operations within the free zone areas. The purpose of the free zone authority is to ensure that environment within the free zone is well regulated and controlled.
TYPES OF BUSINESS LICENSE
The Hamriyah Free Zone offers businesses four types of business licenses to operate within the free zone. The business license is given to the business entity depending on the nature and type of its business operations. The business licenses offered by the Hamriyah Free Zone are as follows:
- Industrial License
- Commercial License
- General Trading License
- Service License
BENEFITS FOR BUSINESSES IN HFZA
HFZA provides companies conducting their business activities in Hamriyah Free Zone with the following benefits:
- Total exemption from corporate, income, export or import taxes
- No currency restrictions
- 100 per cent foreign ownership
- No restriction on repatriation of capital and profits
- Renewable long term lease
- Cost-effective workforce
- Low cost energy
- Onsite labour accommodation
- Access to a 14-metre deep port and 7-metre deep inner harbour
- Onsite customs facilities
- Single window convenience for all administrative services
BENEFITS ASSOCIATED WITH EXTERNAL AUDIT SERVICES IN HFZA
An external audit report provides the company’s stakeholders with all the necessary information they need to assess the company’s business operations as well as its financial position apart from the information provided by the business management and the free zone authority. External audit is basically used as a tool by the shareholders to assess the accuracy and authenticity of the information provided and presented in the entity’s financial statements. An external audit performed by an approved and well-known audit firm provides banks and other investors’ with confidence to rely on the information presented in the audited financial statements with regards to making timely decisions concerning their investment in the entity. The audit report also provides potential investors with confidence to invest in businesses operating within the Hamriyah Free Zone.
APPROVED AUDITORS IN HFZA
Only the audit firms approved by the Hamriyah Free Zone Authority can perform statutory external audits in Hamriyah Free Zone. In order to remain on the list of approved auditors in HFZA, the audit firms must provide evidence to the authority of their employees provided with various educational and professional development programs so that to assist them in updating their knowledge with the changing auditing and accounting standards.
Essential Documents to conduct External Audits in Hamriyah Free Zone . Some of the documents required for the audit of companies registered in HFZ,
- General Ledgers
- Trial Balance
- Balance Sheet
- Profit and Loss Statement
- Fixed asset details and disposals with proper supporting
- Audit schedules
- Closing stock details accompanied with work in progress at year end
- Invoice and bills copies
- Articles of Association (AOA)
- Memorandum of Association (MoA)
- Excise tax registration details or VAT
- Latest Trade License
HOW A & A Associate CAN HELP!
A & A Associate is an HFZA approved audit firm and known for its qualitative and timely auditing services. We not only prepare your audit reports within 1 day record time (depending on the provision of complete information), but also ensure that the stakeholders of your company get useful information from our reports which greatly help them in decision making
FREQUENTLY ASKED QUESTIONS (FAQ)
Yes, Audit from approved auditors in HFZA is mandatory for all the companies registered in the particular Free Zone. As per the regulations of HFZA all companies must submit its financial report or balance sheet, by the end of every financial year, audited by an approved auditor in HFZA. HFZA listed auditors will provide the copy of annual audited accounts of company to the free zone authority within three months of the end of the financial year. A & A associate is one of the top-rated HFZA listed auditors available in UAE.
According to the regulation, companies should submit their copy of annual accounts accompanied with the audit report issued by the approved auditors in Hamriyah Free Zone within three months of the end of financial year. The copy of annual account is delivered to the FZE unit within three months of the end of financial year or it may take longer as per the HFZ authority regulation.
If a company fails to submit their annual report from registered auditors in HFZA within the allocated time frame, then the company will be liable to pay penalty as per the regulations of HFZA authority. Non-renewal of their trade license in HFA is a major drawback that companies fail to submit the audited financial reports. In certain case, companies can ask for an extension of deadline for the submission of audited reports from Registered Auditors in Hamriyah Free Zone.