As the United Arab Emirates (UAE) continues to solidify its position as a global business hub, the demand for qualified auditors who can ensure the accuracy and reliability of financial information is on the rise. However, UAE has strict regulations governing the practice of auditing.
To obtain an audit license in UAE, you must meet certain requirements, such as having a relevant qualification, relevant experience, and passing an exam. Furthermore, this blog post will provide you with an overview of the steps involved in getting an audit license in Dubai, UAE.
Here are some of the key points included in this blog post:
- The requirements for obtaining an audit license in the UAE, including eligibility criteria for an auditor.
- The process of how to get audit license in UAE, including the documentation required and the fees involved.
- The benefits of obtaining an audit license in the UAE, such as the ability to practice auditing and the credibility that it gives your business.
What is an Audit License?
An audit license is a permission granted by a regulatory body to an individual or organization to conduct audits. Moreover, audits are a systematic examination of financial records and other documents to ensure that they are accurate and compliant with applicable laws and regulations.
Audit License in UAE is issued by the Ministry of Economy (MoE). The requirements for obtaining an audit license vary depending on the jurisdiction.
In general, however, the requirements for getting an audit license in the UAE include:
- A bachelor’s degree in accounting, finance, mathematics, or a related field.
- A master’s degree in accounting or business administration with a major in accounting.
- Having passed the mandatory exams in international financial reporting standards (IFRS), international standards in auditing (ISAs), and UAE tax and regulation.
- Having at least 5 years’ experience in auditing.
- Having a valid practicing certificate from a recognized professional body.
- Certificate of equivalency.
Benefits of Having an Audit License in UAE
There are several benefits to having an audit license in Dubai or UAE. It allows you to:
- Perform audits for public companies, private companies, and government entities.
- Issue audit reports that are accepted by regulators and investors.
- Gain access to a wider range of clients and opportunities.
- Enhance your professional credibility and reputation.
To start an audit firm in Dubai, UAE, begin by researching and meeting the requirements. You can also find more information on the MoE website.
Steps to get an Audit License in UAE
Starting an audit company in Dubai involves several key steps to ensure legal compliance and operational readiness. No doubt, Dubai offers a conducive environment for businesses, but it’s important to follow the proper procedures to establish your company.
To start an audit company in Dubai, these 6 steps will help you to get your audit license in the UAE.
Step 1: Choose a business name & structure
Your business name must be unique and cannot be the same as any other business name already registered in Dubai.
There are several different business structures available in Dubai, such as a sole proprietorship, a partnership, a limited liability company (LLC), or a free zone company. The best business structure for you will depend on your specific circumstances.
Among the two categories of business jurisdictions (Freezone or Mainland) in Dubai, free zone companies stand out as the favored and economically efficient choice. These entities permit foreign individuals to retain complete ownership (100%) of their businesses.
However, for an auditing company to engage in lawful trading within the UAE, supplementary measures such as establishing a branch might be obligatory.
Step 2: Obtain the audit license and permits
You will need to obtain an audit business license from the Department of Economic Development (DED) and a professional services license from the Ministry of Economy (MoE). These licenses will allow you to trade as either an auditor, accountant or tax consultant in the UAE.
You may also need to obtain other licenses or permits, depending on the specific activities of your business.
Step 3: Location and Office Space
Depending on your chosen business structure, select an office space that meets DED or free zone regulations. Also, obtain the necessary approvals for your office location.
Step 4: Financial Requirements and Bank Account
Fulfil the minimum capital requirements if applicable to your chosen business structure. Open a business bank account in Dubai to manage your company’s financial transactions.
Step 5: Recruitment and Training
Recruit and train your team of auditors, ensuring they are well-versed in local regulations, international auditing standards, and ethical guidelines.
Step 6: Launch and Marketing
Launch your audit company and promote your services through various marketing channels. Additionally, network with potential clients, business partners, and industry professionals to build your company’s reputation.
Starting an audit firm in Dubai involves legal, regulatory, and administrative procedures. Therefore, it’s recommended to work with legal advisors, business consultants, and authorities to ensure that you follow all the necessary steps accurately and efficiently.
Cost of starting an auditing, accounting or tax consultancy firm in UAE
The license cost of starting an audit firm in the UAE can start from AED 25,000*. However, the exact cost will depend on several factors, including:
- The type of business setup you choose (free zone or mainland)
- The location of your business
- The size of your business
- The number of employees you hire
- The type of services you offer
- The fees charged by the government and other regulatory bodies
* The actual cost may vary depending on the factors mentioned above.
If you want to start an accounting, auditing firm in Dubai or UAE, we highly recommend get in touch with business setup consultants in Dubai at Shuraa on how to get audit license in Dubai and a complete cost breakdown to establish a brand-new business in UAE.
New UAE Audit License Rules for Accounting Firms in UAE
The Ministry of Economy (MoE) issued Ministerial Resolution No. 111-2 of 2022, introducing the new UAE audit license rules for firms.
The new rules aim to improve the quality of auditing in the UAE by raising the standards of education and experience required for auditors. The new rule also aims to strengthen the regulatory framework for auditing firms.
Some of the key changes introduced by the new rules include:
- Auditors must now have a bachelor’s degree in accounting, finance, or a related field. They also must have passed the mandatory exams in international financial reporting standards (IFRS), international standards in auditing (ISAs), and UAE tax and regulation.
- Auditors must now have at least three years of experience in auditing. They also must have a valid practicing certificate from a recognized professional body.
- Audit firms must now also have a minimum of two partners, and each partner must have at least five years of experience in auditing. Moreover, Audit firms must also have a risk management framework in place.
- The MoE has gained new powers to enforce the new rules, including the authority to suspend or revoke audit licenses.
Ready to Start Your Audit Firm in UAE?
Although the procedures to start an accounting firm in UAE are not complex, they do demand a certain degree of familiarity with the business setup process.
Also, please note that the application process remains uncomplicated if your business application is complete and free of errors upon submission. For a hassle-free UAE company formation, consider partnering with a specialist.
When it comes to open a company in Dubai, Shuraa Business Setup is your trusted partner. With over two decades of experience helping more than 50,000 entrepreneurs in realizing their business dreams in the UAE.
With a dedicated team of specialists including UAE company formation consultants, legal experts, PRO executives, and more, Shuraa is committed to providing comprehensive support for every step of your journey.
For a free consultation regarding Dubai business establishment with one of our well-informed experts, reach out to Shuraa by phone at +971 4 4081900, via WhatsApp at +971 50 7775554, or by sending an email to [email protected].
Together, let’s walk on the path to success and unlock the remarkable opportunities that await in the dynamic business landscape of the UAE.