How long must a business keep accounting records in ADGM?

Every company in ADGM must keep accounting documents for at least 10 years.

Who checks business audits in ADGM?

All required audits in ADGM must be done by an ADGM-registered auditor, and the FSRA oversees the regulations.

What happens if a company doesn’t follow ADGM audit rules?

The company might pay fines, lose its license, or face damage to its reputation.

ADGM Accounting & Audit Needs: Main Rules & Support

ADGM Accounting & Audit Needs: Main Rules & Support

Accounting & Auditing in ADGM: Key Needs & Rules

Abu Dhabi Global Market (ADGM) stands as a leading financial center. Businesses in ADGM help drive the UAE’s growth and bring in new ideas. To build trust and keep things clear, ADGM requires all companies to use strong accounting and auditing systems. These steps help keep financial information reliable and make sure investors can count on the numbers.

This article will help you understand the main accounting and auditing standards in ADGM. You’ll learn about the legal rules, what happens if you don’t follow them, and how audits work in this busy financial zone.

Main Accounting & Audit Rules in ADGM

ADGM companies must follow strict rules for keeping accounts and audits.

Keep Records: Every business must keep full accounting documents for at least 10 years.
File Annual Accounts: Businesses need to finish their accounts and send them to the ADGM Registration Authority on time.
Audit by Approved Auditor: Most companies must get their accounts checked by an ADGM-registered auditor like Mubarak Al Ketbi.

Special Cases:

SPVs: If an SPV (Special Purpose Vehicle) controls other companies and doesn’t qualify as a small business, it must make group accounts using IFRS 10 and appoint an ADGM auditor.
Consolidation Exemption: Some companies in a group listed on big stock exchanges may not need to make group accounts.
Ineligible Groups: If any group member is a financial institution or a public interest company, all must file audited accounts, even if they are small.
Migrated Companies: If a company moves into ADGM, its previous financial year continues as normal.

Who Regulates Accounting & Auditing in ADGM?

ADGM uses the Financial Services Regulatory Authority (FSRA) to make sure all financial work is fair and safe.
FSRA does these jobs:

Gives Licenses: FSRA lets banks, insurance, and finance companies work in ADGM.
Checks Rules: FSRA enforces all the finance and audit laws in ADGM.
Protects Customers: The authority works to keep customers and investors safe.
Keeps Markets Fair: FSRA watches for fraud and makes sure the markets stay honest.

Why Are Accounting & Auditing Important in ADGM?

There are big benefits for ADGM businesses that follow the rules:

Improves Quality: Investors trust companies that show clear, audited accounts.
Builds Trust: Audits give shareholders and lenders confidence in a business.
Keeps You Legal: Good records and audits help you meet all ADGM rules and avoid fines or trouble.
Supports Growth: Having the right information helps managers make good decisions and plan for the future.
Saves Money: Audits find problems, which can help businesses run better and save on costs.

Mubarak Al Ketbi Chartered Accountants: How We Help in ADGM

Mubarak Al Ketbi Chartered Accountants knows the ADGM’s accounting and audit rules inside out. Our team can support your business with financial reporting, audit help, and advice about following every law in ADGM. When it comes to accounting and audits, don’t let the grass grow under your feet—let us help you stay on top!

For more information, visit our office: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud, Dubai – UAE
Contact/WhatsApp: +971 50 276 2132

FAQs ADGM Accounting & Audit Needs: Main Rules & Support

What’s the first step to get a VARA license in UAE?

The first step is sending a disclosure form to DET or a Freezone Authority, with business plans and documents, and then paying the first half of the fee.

What papers must I have for the VARA license?

You must prepare business certificates, owner lists, proof of capital, management plans, business forecasts, and insurance documents.

Can I start my business after initial approval?

No, you can only set up the company and hire staff. You can’t run any virtual asset activities until you get the VASP license.

How long does the VARA license process take?

The process time depends on how fast you send documents and answer VARA questions, but it usually takes several weeks to months.

How can Mubarak Al Ketbi (MAK) Auditing help my company?

MAK Auditing helps you gather documents, fill out forms, pay fees, and follow VARA rules so your company can run safely and legally.