The UAE has become the favorite business landscape because of its business-friendly tax and audit regulations. As the UAE becomes a leading global business hub, the demand for skilled auditors in Dubai is rising. In Dubai’s fast-growing economy, obtaining an audit license allows your business to help many companies accurately submit their annual audits to the UAE’s tax authorities.
Having an audit license, you can lawfully examine a company’s financial records to determine compliance with relevant financial, accounting, and tax laws. In order to secure an audit license in the UAE, this article explains the general requirements, the application process, the necessary documentation, and the advantages associated with acquiring an audit license in Dubai.
What Is An Audit License?
An audit license denotes official authorization granted by a regulatory authority upon an individual or entity, permitting them to carry out audits. Furthermore, audits encompass a methodical review of financial records and related documents aimed at verifying their accuracy and adherence to relevant laws and regulations.
The licensing authority, such as the Ministry of Economy (MoE) in Dubai, is responsible for issuing an audit license. This organization has established specific criteria for auditors, encompassing education, experience, and other essential qualifications. Additionally, fulfilling the requirements is necessary to register your audit firm in the UAE.
General Requirements For Audit License In The UAE
Are you interested in obtaining an audit license in the UAE? Whether you intend to operate independently or establish a team, the initial step is to determine your eligibility for the license. In 2022, the Ministry of Economy (MoE) in Dubai updated the criteria for auditors, issuing Ministerial Resolution No. 111-2. Under these updated regulations, certain conditions must be fulfilled to acquire an audit license to practice in Dubai.
- A Bachelor’s degree in Accounting and Finance or a related field is required. While a Master’s degree is not necessary, it can greatly improve your chances of success when starting an audit business and attracting high-quality clients.
- You must pass the International Financial Reporting Standards (IFRS) exam. Additionally, you need to pass exams for the International Standards in Auditing (ISAs) and the UAE’s tax and regulation exam.
- You must possess at least three years of auditing experience, which is a mandatory prerequisite. Additionally, you should hold a certificate from a reputable organization validating your practice, along with a certificate of equivalency.
- To obtain approval to establish a business in Dubai and secure the necessary licenses, you must demonstrate the ability to meet the minimum investment requirements for starting a business in Dubai.
- Finally, acquiring the license demands having a minimum of two partners, each with a minimum of five years of auditing experience. Additionally, implementing a risk management framework is significant.
Meeting these requirements significantly increases your likelihood of obtaining an audit license in Dubai with minimal difficulty.
Benefits Of Having an Audit License:
There are numerous benefits to an audit license in Dubai or the UAE. It enables you to:
- Conduct audits for public companies, private firms, and governmental bodies.
- Issue audit reports recognized by regulators and investors.
- Expand your client base and explore diverse opportunities.
- Enhance your professional integrity and reputation
Steps To Get An Audit License In UAE:
To initiate an audit company in Dubai, following these six steps will help you obtain your audit license in the UAE.
Step 1: Choose a Business Name & Structure
Your business name must be distinctive and cannot match any other registered business name in Dubai. Dubai offers various business structures, including sole proprietorship, partnership, limited liability company (LLC), or free zone company. The most suitable structure for you will be determined by your individual circumstances.
Within Dubai’s business jurisdictions, free zone companies emerge as the preferred and economically advantageous option. These entities enable foreign individuals to maintain full ownership (100%) of their businesses. However, additional steps, such as establishing a branch, may be necessary for an auditing company to conduct lawful operations within the UAE.
Step 2: Obtain The Audit License and Permits
You need to obtain an audit business license from the Department of Economic Development (DED) or the relevant Free Zone Authority and a professional services license from the Ministry of Economy (MoE). These licenses allow you to work as an auditor, accountant, or tax consultant in the UAE.
You might also be required to obtain additional licenses or permits, depending on the particular activities of your business.
Step 3: Location and Office Space
Depending on your chosen business structure, choose an office space that complies with DED or free zone regulations. Additionally, secure the required approvals for your office location.
Step 4: Financial Requirements and Bank Account
Meet the minimum capital requirements if they apply to your selected business structure. Establish a business bank account in Dubai to oversee your company’s financial transactions.
Step 5: Recruitment and Training
Hire and train your team of auditors, ensuring they possess a thorough understanding of local regulations, international auditing standards, and ethical guidelines.
Step 6: Launch and Marketing
Launch your audit company and advertise your services across various marketing platforms. Moreover, engage with potential clients, business associates, and industry experts to establish and enhance your company’s reputation.
Establishing an audit firm in Dubai involves managing various legal, regulatory, and administrative processes. For accurate and efficient adherence to all required steps, you can get guidance from the experts at Now Consultant.
Cost Of Audit License In UAE:
The cost of initiating an audit license in Dubai varies from AED 19,000 to AED 30,000. This pricing is based on several factors, such as:
- Your chosen business setup (free zone or mainland)
- The geographical location of your business
- The size of your business operations
- The number of hiring employees
- The range of services you provide
- Government and regulatory fees applicable
The final cost may fluctuate based on the above factors. For an exact idea of your audit license cost in Dubai, you need to contact the Now Consultant.
How We Can Help You?
If you want to start an audit firm in Dubai and get an audit license, you need to get expert guidance for following throughout the process. If you want to try this on your own, it will cause difficulty for you as the process is not as easy as it seems to be.
Now Consultant, a leading audit firm in Dubai, offers you professional services to help you get an audit license in Dubai.
Our expert team will help you meet the requirements and eligibility criteria and prepare you to pass the IFRS and IAS exams.
We help you at every step of the application process to get an audit license in compliance with the relevant regulatory authorities. Our expert auditors in Dubai can help make obtaining an audit license easier for you.
