Alex France
6
2023
Jun 21, 2023 01:18 PM

Are there any mandatory requirements to maintain books of accounts for businesses in the UAE?

Are there any mandatory requirements to maintain books of accounts for businesses in the UAE?


All Replies (6)
Josna Thomas
8 months ago

Businesses in the UAE are generally required to keep their records on file for at least five years.


Jithin
10 months ago

In UAE, it is a general requirement for businesses to maintain their records for no less than five years.


munavvar
10 months ago

Yes, there are mandatory requirements for maintaining books of accounts for businesses in the United Arab Emirates (UAE)


HANNA SAYYID
10 months ago

Yes, its mandatory to maintain books of accounts for businesses in the UAE for at least 5 years .


Bryce Dsouza
10 months ago

Yes, there are mandatory requirements to maintain books of accounts for businesses in the UAE. It is mandatory for companies to maintain their books of accounts for at least 5 years in accordance with the Federal Law No 2 of 2015 on Commercial Companies and the UAE VAT law and relevant free zone laws. Maintaining proper books of accounts is compulsory in the UAE and any violations will attract administrative penalties.



Jhon Peter
10 months ago

Yes, there are mandatory requirements for maintaining books of accounts for businesses in the United Arab Emirates (UAE). The UAE has implemented various regulations and guidelines to ensure proper bookkeeping and financial reporting. The main requirements include:


Commercial Companies Law: The UAE Commercial Companies Law mandates that all companies, including limited liability companies (LLCs) and joint-stock companies, must maintain proper books of accounts. These books should accurately reflect the company's financial position and transactions.


Accounting Standards: The UAE has adopted International Financial Reporting Standards (IFRS) as the basis for financial reporting. Businesses are required to comply with these standards when preparing their financial statements.


Documentation of Transactions: Businesses are required to maintain supporting documents for all financial transactions, including invoices, receipts, contracts, and bank statements. These documents should be organized and readily available for inspection.


Double-Entry Bookkeeping: Companies are generally expected to follow the double-entry bookkeeping system, which records each transaction with equal debits and credits. This system ensures accurate and balanced financial records.


Retention of Records: The UAE law requires businesses to retain their accounting records for a specific period. Generally, companies must keep their financial records for at least five years, although specific regulations may vary depending on the emirate and the nature of the business.


Auditing Requirements: Companies in the UAE may be required to have their financial statements audited by a licensed auditor. The requirement for an audit typically depends on the size of the company, its activities, and other factors determined by the regulatory authorities.


It is important for businesses to comply with these requirements to ensure transparency, accountability, and legal compliance. Non-compliance with the regulations may result in penalties, fines, or other legal consequences. It is advisable for businesses to consult with professional accountants or legal advisors to understand and fulfill their specific obligations in maintaining books of accounts in the UAE.


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