Approved Auditors in Hamriya Free Zone
Hamriyah Free Zone is located in Sharjah, United Arab Emirates, which gives the free zone a unique geographic and time zone advantage backed by a secure and fully convertible currency. The Hamriyah Free Zone (HFZ) attracts more than USD 3 billion in foreign investments which is a testament to the effectiveness of these regulatory measures by the free zone authority. The HFZA’s successful regulatory measures have been reflected in the smooth operations of the companies operating in the Free Zone.
Hamriyah Free Zone (HFZ) Overview
Located strategically in the emirate of Sharjah, HFZ stands as a vital business hub within the UAE, following Abu Dhabi and Dubai in size. Sharjah holds the prestigious UNESCO title of Cultural Capital of the Arab World, boasting renowned educational institutions and a rich cultural heritage. HFZ provides a wide range of business facilities, including offices, warehouses, and state-of-the-art factories.
Companies operating in HFZ are engaged in diverse sectors such as heavy industry, logistics, transportation, oil & gas, petrochemicals, packaging, steel, recycling, food, textiles, perfumes, cosmetics, and more. Alongside these sectors, HFZ also accommodates service providers like banking and auditing firms, currency exchanges, conference facilities, and staff accommodations, enhancing its appeal as a comprehensive business destination.
Documents Required by the HFZA Approved Auditors to Conduct the Audit
- Trial Balance, Balance Sheet, Profit, and Loss Statements
- Audit schedules (depreciation, bad debt provisions, accruals)
- Details of closing stock and working in progress at the year-end
- Details of fixed asset additions and disposals during the year with proper supporting
- Copies of bills and invoices
- Memorandum of Association (MOA)
- Articles of Association (AOA)
- Trade License
- Registration Details for VAT and Excise Tax (If Applicable)
- Books of Accounts
How to Prepare and Maintain Accounting Records for Auditing in Companies?
All companies operating within the HFZ (Hamriyah Free Zone) are mandated to maintain accounting records that provide an accurate financial depiction of the company. These records should enable company directors to prepare balance sheets and profit and loss accounts in accordance with International Financial Reporting Standards (IFRS).
The accounting records should encompass:
- Assets and Liabilities of the Company
- Detailed daily records of all monetary transactions received and disbursed
- Documentation of the reasons behind each receipt and expenditure
These accounting records must be stored at the company’s registered office within the HFZA. Furthermore, the books of accounts must be accessible for inspection by the company’s shareholders or their representatives at any time. Additionally, companies operating within the HFZA should determine their initial financial year based on the date of incorporation as indicated on the Certificate of Incorporation.
Why Audit Is Mandatory from Approved Auditors In HFZA?
To maintain compliance with local regulations, including those of the Federal Tax Authority (FTA) and Anti-Money Laundering (AML) guidelines, companies licensed by the Hamriyah Free Zone Authority (HFZA) in the UAE are required to undergo external auditing of their financial records. This ensures the accuracy of the company’s accounts and helps detect and prevent fraud or financial misconduct.
The audit report, relied upon by the HFZA and stakeholders, ensures that the company’s accounts are prepared in accordance with both local and international accounting standards, enabling informed business decision-making. Companies within HFZA can choose from a range of reputable external auditing firms in the UAE for their auditing needs.
Why choose Elevate as an Approved Auditor in HFZA?
Elevate, as approved auditors in Hamriyah Free Zone (HFZ), UAE, operates with a team of qualified auditors who conduct audits in strict adherence to International Financial Reporting Standards. Our primary objective is to ensure that the financial records of companies present an accurate and unbiased view of their financial position. By availing of our audit services, companies gain the confidence of the Hamriyah Free Zone Authority (HFZA), stakeholders, and clients, thereby fostering business stability and growth within the UAE.
We have been entrusted by numerous companies in the Hamriyah Free Zone to prepare and submit timely audit reports to the authority. With our extensive experience, our auditors assist clients in meeting regulatory requirements and maintaining compliance. For companies seeking auditing services in the HFZA, Elevate is among the approved auditors in Hamriyah Free Zone, appearing in the HFZA approved auditors list.