Date: August 19, 2025
Introduction
Starting September 30, 2025, all businesses registered with the International Free Zone Authority (IFZA) in Dubai must submit financial statements when renewing their trade license. This applies to both Free Zone Companies (FZCO) and branches of foreign companies.
The goal is to improve transparency, strengthen business governance, and align IFZA rules with international standards. Preparing your financial records on time will help you avoid delays or penalties during license renewal.
Who Needs to Submit Financial Statements
Every IFZA license holder must provide financial statements for the most recently completed financial year. The type of report depends on the company’s size:
- Small businesses and startups: Can submit simplified financial statements if turnover is AED 3 million or less and staff are 9 or fewer.
- Medium and large companies: Must submit audited financial statements if turnover is above AED 3 million or staff are 10 or more.
Grace Period
If your license is renewed before September 30, 2025, you won’t need to submit financial statements. From September 30 onwards, no renewal will be processed without them.
Accounting Standards to Follow
Different companies must follow different accounting rules:
| Annual Turnover | Accounting Method |
|---|---|
| AED 3 million or less | Cash-based accounting |
| AED 3–50 million | IFRS for SMEs |
| Above AED 50 million | Full IFRS |
Knowing the right standard will help you avoid mistakes when preparing your reports.
How to Submit Your Financial Statements
The process is digital and straightforward:
- Prepare the financial statements in the correct format (simplified or audited).
- Have them signed by an authorized company representative (manager, director, or shareholder) with a digital signature.
- Upload the files to the IFZA portal during your license renewal.
- Wait for IFZA confirmation to complete the renewal.
Why This Matters
Submitting financial statements isn’t just a rule — it has benefits:
- Provides accurate financial data for better transparency.
- Builds trust with banks and investors.
- Ensures compliance with UAE regulations.
- Prevents delays that could affect visa renewals, contracts, or banking.
Steps to Prepare
To be ready for the new requirement
- Check your financial year-end.
- See if you qualify for simplified reporting.
- Hire an approved audit firm early if you need a full audit.
- Keep your books and records up to date.
- Organize invoices, contracts, payroll, and bank statements for verification.
How Professional Help Can Assist
Working with an IFZA-approved audit or advisory firm ensures:
- Your financial statements are accurate and compliant.
- Reports follow IFZA and IFRS standards.
- License renewal is smooth and on time.
- Guidance on whether simplified or audited reporting applies to your business.
By choosing IFZA-approved accountants, you can be confident that your submissions meet the authority’s requirements and avoid unnecessary delays.
Final Thoughts
The new IFZA audit and financial reporting rules are a positive step for Dubai’s free zone businesses. While it adds some responsibility, it also improves financial discipline and credibility.
Prepare early and work with professionals to meet these requirements smoothly, keeping your business compliant and ready for growth.
Need help preparing your IFZA financial statements for license renewal? Contact our IFZA-approved accountants today at +971 4 338 8085 to ensure a smooth and compliant renewal process!
