Ajman Free Zone Annual Audit

An independent audit of your Ajman free zone company's annual financial statements, carried out by a UAE-licensed audit firm. You need it to keep the 0% Corporate Tax rate as a Qualifying Free Zone Person, and where your free zone, bank or revenue level requires it.

Description

An annual audit is an independent check of your company's financial statements by a UAE-licensed auditor. For companies in Ajman Free Zone (AFZ), Ajman Media City Free Zone (AMCFZ) and Ajman NuVentures Centre Free Zone (ANCFZ), two separate sets of rules can require one: UAE Corporate Tax, and your free zone's own rules.

UAE Corporate Tax. Under Ministerial Decision No. 84 of 2025, which applies to tax periods starting on or after 1 January 2025, two groups must prepare and keep audited financial statements: every Qualifying Free Zone Person (QFZP), whatever its revenue, and any other taxable company with revenue above AED 50 million in the tax period. Tax Groups must also prepare audited special purpose financial statements. If your free zone company wants the 0% rate on qualifying income, the audit is a condition, not an option. A QFZP that fails any of the conditions loses the 0% rate for that tax period and the following four.

Your free zone's own rules. Free zones can set their own accounting and audit conditions, often tied to licence renewal. These rules differ between AFZ, AMCFZ and ANCFZ and can change. We confirm your zone's current requirement before you start, so you don't prepare more, or less, than you need. Banks may also ask for audited accounts during their periodic reviews of your corporate bank account.

Timing. Your Corporate Tax return is due within nine months of the end of your financial year. For a 31 December year-end, that is 30 September. A QFZP needs its audit finished before then. If your free zone also asks for audited accounts at renewal, plan backwards from your licence expiry date. The most common problem we see is leaving it until the renewal month.

Accounting standards. Financial statements for Corporate Tax are prepared under IFRS. Companies with revenue of AED 50 million or less may use IFRS for SMEs.

How Octavon helps. We coordinate the audit with a UAE-licensed audit firm. We collect your records and get them audit-ready. Where the books are incomplete, we arrange a bookkeeping catch-up first. We then follow the audit through to the signed report. If you're still choosing a structure, our Ajman free zone company setup team can explain early what being a QFZP will mean for your yearly compliance.

What affects the cost. The audit fee depends on how many transactions you have and how tidy your books are. It also depends on the number of bank accounts and currencies, whether you hold stock, and whether you have related-party or group transactions. A first audit usually takes more work than later ones. Message us on WhatsApp or live chat for a quote based on your company.

What's Included

Check of which audit rules apply to you: your free zone's current requirement, QFZP status and the AED 50 million revenue test
Engagement with a UAE-licensed audit firm (independent of Octavon)
Pre-audit review of your books, bank reconciliations and trial balance
Bookkeeping catch-up where records are incomplete (scoped and quoted separately)
Coordination of auditor queries and the supporting documents they request
Review of related-party transactions and disclosures (relevant to QFZP arm's-length conditions)
Audited financial statements under IFRS or IFRS for SMEs, with the auditor's signed report
Help submitting the audited statements to your free zone where it requires them, and keeping them ready for your Corporate Tax return

Requirements / Prerequisites

An active Ajman free zone licence (AFZ, AMCFZ or ANCFZ)
A financial year that has ended (or is about to end)
Accounting records for the year, or bank statements and source documents so they can be rebuilt
Corporate Tax registration with the Federal Tax Authority (if not yet done, tell us)
Your previous year's audited statements, if the company has been audited before

Required Documents

Trade licence, Memorandum/Articles of Association and share certificate
Corporate Tax registration certificate (TRN), and VAT certificate if registered
Trial balance, general ledger and draft financial statements (if available)
Bank statements for all company accounts for the full year, plus year-end bank confirmations where the auditor requests them
Sales and purchase invoices, contracts and major receipts
Payroll records and the visa/employee list (if you have staff)
Fixed asset register, and stock records if you hold inventory
Loan agreements and details of transactions with shareholders, directors and related companies
Previous year's audited financial statements (if any)

Our Process

Scoping call: we confirm your free zone, financial year-end, revenue level and whether you are claiming QFZP status
Confirm the requirement: we check your free zone's current audit rule and set a timeline that fits your Corporate Tax return deadline and licence renewal date
Engagement: you sign an engagement letter with the audit firm
Records review: we collect your documents and check the books are complete; if they aren't, we agree a catch-up plan first
Fieldwork: the auditor tests balances and transactions and sends queries, which we coordinate with you
Draft review: you review the draft financial statements and any adjustments the auditor proposes
Sign-off: you sign the management representation letter and the auditor issues the signed report
Use and submission: the audited statements are submitted to your free zone if required, kept for your Corporate Tax return and filed in your records (Corporate Tax records must be kept for 7 years)

Pricing

Contact via WhatsApp

Frequently Asked Questions

Is an audit mandatory for my Ajman free zone company?

For UAE Corporate Tax, yes if you are a Qualifying Free Zone Person claiming the 0% rate, whatever your revenue. It is also required if your revenue is above AED 50 million. Separately, your free zone may require audited accounts as a licensing condition. That rule differs by zone and can change, so we confirm your zone's current requirement before you start.

I'm a small free zone company. Can I skip the audit?

Only if you are not claiming QFZP status, your revenue is AED 50 million or less, and neither your free zone nor your bank asks for one. A QFZP can't elect Small Business Relief to avoid the audit. Most free zone companies want the 0% rate, so most need the audit.

What happens if a QFZP doesn't have audited accounts?

Keeping audited financial statements is one of the QFZP conditions. A company that fails a condition stops being a QFZP for that tax period and the next four, and is then taxed at the standard rates.

When should the audit be finished?

Before you file your Corporate Tax return, which is due within nine months of your financial year-end (30 September for a 31 December year-end). If your free zone also asks for audited accounts at renewal, the renewal date may be earlier. Start soon after year-end.

Who can audit my company? Does it have to be a free zone approved auditor?

The audit must be done by a UAE-licensed audit firm. Some free zones keep their own list of accepted auditors. We confirm your zone's current position and use a firm that meets it.

Which accounting standard is used?

IFRS. Companies with revenue of AED 50 million or less may use IFRS for SMEs. The auditor then audits the statements under International Standards on Auditing.

My books aren't up to date. What now?

We arrange a bookkeeping catch-up from your bank statements and invoices before the audit starts. How long it takes depends on the number of transactions and how complete your documents are.

How much does an audit cost?

It depends on your transaction volume, the state of your books, the number of bank accounts, stock, and related-party transactions. Contact us on WhatsApp or live chat for a quote based on your company.