Prikhodko&Partners
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International corporate law
Business Setup and Support in the UAE (United Arab Emirates) ACCOUNTING SUPPORT FOR BUSINESS (FIRM) IN THE UAE

Taras Miroshnychenko

Head of International Corporate Law and Fintech Practice

E-mail

miroshnychenko@prikhodko.com.ua

Phone numbers

Expert in fintech, crypto, and international corporate law with over 20 years of experience. Specializes in crypto licensing (VASP/CASP), iGaming business support, and international structuring, asset protection, and OSINT analytics for risk assessment and due diligence.

ACCOUNTING SUPPORT FOR BUSINESS (FIRM) IN THE UAE

Bookkeeping in the UAE is not related to tax reporting requirements, but rather is a requirement of corporate law.

There is no federal income and payroll tax in the UAE, so the government has fewer accounting requirements compared to countries that do. However, even in a tax-free environment, it is critical to create an accounting framework that provides accurate information and analysis as a basis for strategic decision-making. According to recent company laws, company management is responsible for ensuring that its shareholders have true and objective information about the company. More and more authorities are introducing audited financial reporting requirements as part of the company’s license renewal requirements. Entities with regulated activities in the UAE, such as entities regulated by the Central Bank, are required by the DFSA to submit their reports to the regulator on a regular basis. It can be quarterly or annually.

Accounting and reporting services

Taking into account the nature of the organization’s activities, we assume that the following accounting services are required on a monthly basis:

Monthly accounting in accordance with applicable local GAAP and IFRS with local adjustments when necessary
Preparation of monthly financial statements (in our own format or yours if you let us know the requirements)

Monthly accounting

Prepare the sales journal, purchases journal, and other journal entries

Record all payments and funds received
Accounting of all receivables and payables
Record all assets purchased and related depreciation.
Accounting of advance payments and accruals

Financial reports

Let us know your requirements and we will prepare a suitable report package. The report should include:

Balance sheet
income statement
Trial balance
Application for reconciliation with the bank
List of general ledger
Balance sheet and separate expense schedules
Petty cash report
Monthly client reporting package if required

Billing is based on the relevant records/documents, information and explanations provided to us. Therefore, the responsibility for control, accuracy and completeness rests with you and your company’s management.

Accounting support for activities in the UAE

For the correct submission of all tax and financial statements, in accordance with EU legislation, a large number of companies registered in Italy use the services of accountants who are not part of the company’s staff. Since we have our representatives in Dubai and Abu Dhabi, the largest Emirates, all financial and tax reports can be submitted by our specialist.

An accounting firm in the UAE and what are the advantages of working with it?

External accounting service in the UAE has many advantages and the main advantage is that, in case of incorrect submission of reports or calculation of payments, we will pay at our own expense all fines issued by the controlling authority. A Ukrainian-speaking or Russian-speaking accountant in the UAE is our advantage among other accounting companies. Consultation on accounting in the UAE in Ukrainian or Russian will simplify the understanding between you and the accountant, make it more accessible for you to understand the legislation of the UAE in the field of accounting and taxes.

Accounting in the UAE

The legislation of the UAE stipulates the conditions for keeping accounting records.

In general, there are the following accounting options, they are also used in the UAE:

When a director or an individual entrepreneur independently maintains accounting. In this option, there are practically no advantages, but there are many disadvantages, in particular, insufficient time to directly conduct business, making mistakes in case of omission of novelties in the legislation of the UAE.
When there is an individual who is registered as an accountant and carries out his activities in the company. In this case, a person fulfills his obligations to the firm without any problems, fulfilling his direct duty of accounting for a certain firm – this is an obvious advantage.
However, there are also disadvantages: the rather large salary for maintaining such an accountant, which reaches about 1 thousand euros per month, and in some cases it can be even more. Also, if the accountant does not come to work, then it is necessary to find a replacement for him, this involves additional costs. Often, one chief accountant and several ordinary accountants are hired, which implies significant costs for their maintenance.
Accounting support (outsourcing) of business in the UAE

There will be no downsides if you contact real professionals who guarantee their work.

Among the advantages, you should pay attention to the following – we employ a large number of accountants of various specializations, and therefore we guarantee the performance of work at the highest level, the low cost of the service in comparison with others, go to any of your questions that may arise during accounting. Our specialists have a high level of knowledge in many types of business.

In more detail about the last point, we provide accountant services in the UAE, in particular:

Accountant in Dubai
Accountant in Abu Dhabi

Accountant services in the UAE include:

Accounting service for enterprises of all organizational and legal forms
Accounting and tax audit of a firm (business) in the UAE
Preparation and submission of declarations and reports to tax and control authorities
Representation of a lawyer and accountant in the tax authorities of the UAE
CIT, PIT, ZUS, VAT, PFRON, NBP, GUS, declarations – preparation, verification and submission to regulatory authorities.
Keeping personnel records, calculation of salary, payment of relevant taxes for employees, submission of personnel reports
Import-export operations (WDT, WNT)
Preparation of invoices and invoices
Making bank payments
Analysis of the financial state of the enterprise

Accounting services in the UAE are one of the main areas of activity of YK Prykhodko and partners, because we are familiar with the legislation of the UAE, and therefore clearly understand how the tax system of the UAE works and will help you choose the best tax system for your business, because we have an individual approach for each client , which depends on the direction of your activity, the organizational legal form of the legal entity.

Which is better: Mainland or Free Zone?

Mainland is generally suitable for businesses planning to operate directly in the UAE domestic market, maintain a physical location, premises or a local team. Free Zone is often chosen for international services, IT, e-commerce, consulting, trade and other models with specialised infrastructure. The choice depends on the activity, clients, office, visas, account and tax model.

Can a foreigner own 100% of a company in the UAE?

Yes, Free Zones allow 100% foreign ownership, and most Mainland activities are also available for full foreign ownership. Special restrictions, approvals or ownership structure requirements may apply to certain strategic impact activities.

Does a Free Zone company pay 0% Corporate Tax?

Not automatically. The 0% rate applies to Qualifying Income of a company that meets the requirements of a Qualifying Free Zone Person. Other taxable income may be subject to the 9% rate. The company must also register for Corporate Tax, maintain records and submit returns.

When does a company need VAT registration?

For resident businesses, mandatory registration generally arises when taxable supplies and imports exceed AED 375,000 during the previous 12 months or are expected to exceed this amount within the next 30 days. Voluntary registration is possible from AED 187,500. Different rules may apply to non-residents and certain cross-border transactions.

Is it mandatory to obtain a residence visa?

Not for every structure. A company may be registered without immediately obtaining an owner’s visa if the relevant jurisdiction allows it. At the same time, a residence visa and Emirates ID may be important for living in the UAE, banking KYC, leasing, connecting certain services and demonstrating local presence.

Successful cases on the topic: