DLS Dubai Free Zone company renewal and audits

[John Doe GOLDEN STAMP]

Hi


I have a Dubai Free Zone company which I got setup with DLS Dubai.


I never ended up using it for any business purposes except for the VISA but it seems DLS Dubai now no longer exists


A friend yesterday mentioned to me that now there are audits requires on Free zone companies,which I knew nothing about.


I wondered if anyone knows what would be the best way for me to renew this such as other services who could take over it, or whether anyone knows anything about whether I'm supposed to be getting audits done (Even though there is no business activity)


Thanks

Greetings!
Everything is easier in the Mainland. And the renewal of licenses usually costs exactly the same (about 9-13K). But in Free Zones, prices are always different (and the extension is usually the same). Since free zones are entirely and completely private companies working through intermediaries.
Check with your Free Zone or "its professional partner (they are different everywhere".

 

[MankouJoe]

We set up in Silicone Oasis using DLS in late 2022 and after a brief panic getting everything in order upon the CIT announcement last year, we got an accountant. Through them we registered for CIT and VAT - were fined for late registration on the VAT front - and received some advisory services. Fast forward to Feb this year, we received an audit request from DIEZ with audited financial statements. I tried to negotiate the requirement for audited financial reports as it seemed to conflict with the official rules - WTF do I know - but managed to get a 60-day extension for audited financial statements (over the initial two-week deadline). IFZA were unable to provide audited statements but were helpful in providing some other documents we required, we then went to another company to produce the audited statements - took about 10 days (75-ish transacations) for FY23 - which really wasn't that much hassle.

 

[John Doe GOLDEN STAMP]

We set up in Silicone Oasis using DLS in late 2022 and after a brief panic getting everything in order upon the CIT announcement last year, we got an accountant. Through them we registered for CIT and VAT - were fined for late registration on the VAT front - and received some advisory services. Fast forward to Feb this year, we received an audit request from DIEZ with audited financial statements. I tried to negotiate the requirement for audited financial reports as it seemed to conflict with the official rules - WTF do I know - but managed to get a 60-day extension for audited financial statements (over the initial two-week deadline). IFZA were unable to provide audited statements but were helpful in providing some other documents we required, we then went to another company to produce the audited statements - took about 10 days (75-ish transacations) for FY23 - which really wasn't that much hassle.

It was very pleasant to read the concise and businesslike format of such a "story"!) You definitely have everything under control. Yes, Free Zones are subject to audits more often than Mainland Ones. Since it is pure water (offshore). Strictly speaking, for what purposes this line of business exists.

There is nothing scary or complicated about Corporate tax. Keep the documents for up to 5 years, conduct an audit (by internal or external auditors), and calmly pay and change the data yourself through the section of the FTA website.

So does IFZA do the same services which DLS Dubai did previously, and therefore no need to get a new intermediary?

I am considering just closing it depending on how much the renewal is and how much admin is now involved with all this tax stuff I've read about

Friends, you should know that Free Zones do not provide ANY services themselves (with the rare exception of free zones). Each has a professional intermediary partner. As a rule, these are very large companies. For example, IFZA is Shuraa. And you will be transferred to it. And DLS and Fred are the second intermediary. Who help and get their %.

On the Mainland, for example, there are no such problems and "a million" intermediaries who delay the processes and only raise prices.

Be careful and always double-check information on government sources!

If you wish, you can write to me.

 

[uranium]

For example, IFZA is Shuraa

I found no proof of that.
Shuraa is basically just one of many partners of ifza just like dls dubai.
If you can have proof, please share with us

 

[John Doe GOLDEN STAMP]

I found no proof of that.
Shuraa is basically just one of many partners of ifza just like dls dubai.
If you can have proof, please share with us

I may not have expressed myself clearly enough. I am not accusing any parties, to prove something. Free zone business partners are a minor topic of discussion)

 

[uranium]

I may not have expressed myself clearly enough. I am not accusing any parties, to prove something. Free zone business partners are a minor topic of discussion)

You just said above that Shuraa is doing ifza work. Now when I ask for proof of that, you deny it
Anyways here is proof that shuraa is just a partner of ifza

IFZA Authorized Partners - IFZA

ifza.com

You will find it first in list.

 

[John Doe GOLDEN STAMP]

You just said above that Shuraa is doing ifza work. Now when I ask for proof of that, you deny it
Anyways here is proof that shuraa is just a partner of ifza

IFZA Authorized Partners - IFZA

ifza.com

You will find it first in list.

Gratitude. Yes, Shuraa is the main and most important partner. This is public information. If you need to: open a new one, renew a license, change the authorized capital, employ employees, and so on, then only Shuraa will help you. Of course, you can request a NOC from her and work with the Zone itself directly, but it's not easy.

 

[uranium]

Gratitude. Yes, Shuraa is the main and most important partner. This is public information. If you need to: open a new one, renew a license, change the authorized capital, employ employees, and so on, then only Shuraa will help you. Of course, you can request a NOC from her and work with the Zone itself directly, but it's not easy.

Opening a company is the easiest part. You can contact ifza, pay fee and get full package your self. But the most difficult part is opening the bank account.
This is where service provider can assist.

 

[JohnLocke]

Gratitude. Yes, Shuraa is the main and most important partner. This is public information. If you need to: open a new one, renew a license, change the authorized capital, employ employees, and so on, then only Shuraa will help you. Of course, you can request a NOC from her and work with the Zone itself directly, but it's not easy.

Do you have a link or other references to this public information?

 

[hanoib]

@uranium that’s right. The renewal can also be done easily straight with IFZA.

The only thing what I am facing is the financial reports.

Anyone here knows how to do it yourself and submit it to ifza and the government. Or do we have to wait and only prepare it?

Thanks!

 

[uranium]

@uranium that’s right. The renewal can also be done easily straight with IFZA.

The only thing what I am facing is the financial reports.

Anyone here knows how to do it yourself and submit it to ifza and the government. Or do we have to wait and only prepare it?

Thanks!

First you have to register with FTA for corporate tax otherwise you get fined.
Second you have to go to accountant in dubai to prepare and submit financial report to FTA.
Forget about doing it your self.

 

[jafo]

the most difficult part is opening the bank account.

Is this difficult even in Dubai with a UAE company???

 

[uranium]

Is this difficult even in Dubai with a UAE company???

Yes it is but for startups there is online banks like Wio.
Most forum members here are using Wio without any complaints
For mid-big size business, better with service provider.

 

[hanoib]

First you have to register with FTA for corporate tax otherwise you get fined.
Second you have to go to accountant in dubai to prepare and submit financial report to FTA.
Forget about doing it your self.

Yup, I am already registered for CT.

But if it’s a business with not much transactions to and from the bank it should be easy to list it all in a sheet and then tick it in the FTA website forms (what I think).

 

[uranium]

Yup, I am already registered for CT.

But if it’s a business with not much transactions to and from the bank it should be easy to list it all in a sheet and then tick it in the FTA website forms (what I think).

Absolutely not.
Spend some money and hire accountant, I'm sure he will explain you things you never heard of.

 

[hanoib]

When we register for Corporate Tax (CT), we uploaded the trade license and emirates id and filled in the expire date.

What do we do if the expire date ends in a couple of months?

Does it mean we have to do this every year? Or only edit the trade license date and emirates id, and upload it again.

 

[uranium]

When we register for Corporate Tax (CT), we uploaded the trade license and emirates id and filled in the expire date.

What do we do if the expire date ends in a couple of months?

Does it mean we have to do this every year? Or only edit the trade license date and emirates id, and upload it again.

To be honest I don't know and that is why I suggested you go to accountant in dubai.

 

[hanoib]

To be honest I don't know and that is why I suggested you go to accountant in dubai.

Most of us that are on this forum are clever enough to discuss and find a way together. Right?

Do you know how much a proffesional IFZA partner asked for renewing a IFZA license fee?

2500 AED. That’s around 680 USD.

I asked IFZA to send me the invoice directly and I paid that. Without the 2500 AED extra costs.

2500 AED for what? To forward an invoice from IFZA to me? It’s crazy how professional partners want to earn 2500 AED by doing nothing. And it’s more crazy that people go running to them every time.

This needs to stop.

 

[uranium]

Most of us that are on this forum are clever enough to discuss and find a way together. Right?

Do you know how much a proffesional IFZA partner asked for renewing a IFZA license fee?

2500 AED. That’s around 680 USD.

I asked IFZA to send me the invoice directly and I paid that. Without the 2500 AED extra costs.

2500 AED for what? To forward an invoice from IFZA to me? It’s crazy how professional partners want to earn 2500 AED by doing nothing. And it’s more crazy that people go running to them every time.

This needs to stop.

Agreed 100% that is why I suggested to go directly to ifza for incorporating and renewal..
What most of you don't know, is that ifza pays commission to its partners.
Basically ifza partners make money from you and from ifza!

 

[hanoib]

Agreed 100% that is why I suggested to go directly to ifza for incorporating and renewal..
What most of you don't know, is that ifza pays commission to its partners.
Basically ifza partners make money from you and from ifza!

100% correct!