Accounting Services for ADGM
Abu Dhabi Global Market (ADGM) stands out as a prominent international financial hub, recognized for its strong focus on corporate governance, transparency, and rigorous financial reporting. Businesses operating within ADGM are required to meet these high standards, which ensures that their financial statements are both accurate and reliable.
Given these essential requirements, our Accounting Services for ADGM are crucial for organizations aiming to comply with regulations and maintain their reputation. HLB Abu Dhabi provides specialized accounting support tailored specifically for companies within ADGM, helping you manage the complexities of financial reporting with confidence and ease.
Accounting Requirements for ADGM Entities
- Maintain Accurate Records: All ADGM entities must keep proper accounting records that comply with International Accounting Standards (IAS).
- Public Companies: These companies are required to present their financial accounts during general meetings.
- Private Companies: They must provide copies of their financial statements and reports to their members when submitting filings to the Registrar.
- Director’s Responsibilities: A company’s director is responsible for preparing the director’s report and submitting the necessary accounts and reports for each financial year to the Registrar, excluding Registered Sheltered Companies (RSCs) and Foundations.
- Small Companies: Defined as those with a turnover of no more than USD 13.5 million and fewer than 35 employees, small companies are only required to file a balance sheet.
- SPVs: SPVs must keep detailed records of operations, financial transactions, and decision-making to ensure compliance with tax regulations and maintain transparency.
- Medium and Larger Companies: These entities must submit audited accounts along with a director’s report to meet regulatory requirements.
- Record Retention: All ADGM entities are required to maintain accounting records for a minimum of 10 years.
- Annual Filings: Entities must file their annual accounts with the ADGM Registration Authority for the financial year that ends on the Accounting Reference Date (ARD).
- Audit Requirements: Unless specifically exempted, all ADGM entities must have their accounts audited by a statutory auditor registered with ADGM
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Time Frame for Submitting Annual Accounts to ADGM Registration Authority
- For Existing Entities: Companies that are already operating in ADGM must file their annual financial statements with the ADGM Registration Authority (RA) within 9 months from their Accounting Reference Date (ARD).
- For Newly Incorporated Entities: Newly established companies are required to file their annual accounts by the earlier of these two deadlines:
- 9 months after their first year of operation
- 9 months following the date of incorporation
- For Public Companies: Publicly listed companies have a shorter timeframe, needing to submit their annual accounts within 6 months from their ARD.
Small Company Exemptions for Accounting in ADGM
Companies in the Abu Dhabi Global Market (ADGM) that meet the “small companies” criteria can benefit from specific exemptions:
Benefits:
- Simplified Filing: Small companies are not required to file a complete set of annual accounts but must file a balance sheet.
- Group Accounts: They are exempt from preparing group accounts.
- Audit Requirement: An audit of annual accounts is not mandatory.
Eligibility Criteria:
To qualify as a small company each year, both of the following conditions must be met:
- Annual Turnover: Must not exceed 13.5 million US dollars.
- Employee Count: The average number of employees should not exceed 35.
Accounting Requirements of SPVs in ADGM
A Special Purpose Vehicle (SPV) is a separate legal entity designed to isolate financial and legal risks by ring-fencing specific assets and liabilities. As passive holding companies, SPVs help protect the parent company from exposure to risks associated with particular transactions.
Here is the accounting requirements of SPVs in ADGM.
- Maintain Detailed Records: SPVs must keep comprehensive records of income sources, decision-making processes, and operational activities to ensure transparency and compliance with regulations.
- File Annual Tax Returns: SPVs are required to submit annual tax returns to demonstrate compliance with tax obligations and provide accurate financial information to authorities, as income generated from UAE mainland sources is taxable.
- Undergo Regular Audits: In some cases, SPVs must undergo regular audits to maintain compliance with financial regulations and ensure the accuracy of their financial statements.
- Prepare Consolidated Group Accounts: If an SPV controls subsidiaries and does not meet the criteria for the small companies’ exemption, it must prepare consolidated group accounts in accordance with IFRS 10 to present a complete financial picture.
- Engage an ADGM-Approved Auditor: SPVs must work with an ADGM-approved auditor for the audit of their group accounts, as stipulated in Section 389 of the Companies Regulations 2020, to ensure compliance with local regulations and standards.
How HLB Abu Dhabi Helps with Accounting for ADGM in Abu Dhabi?
HLB Abu Dhabi provides comprehensive support for companies navigating accounting requirements in the Abu Dhabi Global Market (ADGM):
- Support for Small Company Exemptions: We help small companies determine if they qualify for specific exemptions, simplifying their accounting obligations.
- Deadline Notifications: Our team keeps you informed about important deadlines for filing accounts, ensuring timely compliance.
- Filing Procedures: We guide you through the filing process for accounts in ADGM, making it seamless and efficient.
- Currency Requirements: HLB Abu Dhabi ensures all accounts are properly denominated in USD, meeting ADGM’s standards.
- Types of Accounts: Our experts ensure that you submit the correct accounts based on your business size and type, adhering to ADGM standards.
Why Choose HLB Abu Dhabi as Your Accounting Partner for ADGM in Abu Dhabi?
At HLB Abu Dhabi, we understand the unique accounting needs of businesses operating in the Abu Dhabi Global Market (ADGM). We make it easy for you with:
- Streamlined Processes: We use advanced tools to make accounting faster and more efficient, giving you access to accurate financial data quickly.
- Regulatory Expertise: We ensure your accounting practices comply with all the rules and regulations in the UAE, so you can focus on your business.
- Tailored Support: We work with you to find the best accounting solutions that fit your specific business needs.
- Software Savvy: Our team is skilled in popular accounting software like QuickBooks, Xero, Zoho, Sage, Odoo, and SAP B1.
- Years of Experience: With over 25 years of experience, we understand the challenges businesses face in ADGM and resolve that.
- High Standards: We follow the highest international standards (IFRS and ISA) to ensure your financial statements are reliable.
- Global Reach, Local Expertise: We combine our global knowledge with our deep understanding of the UAE market.
- VAT and Corporate Compliance: Our accounting services also include comprehensive support for VAT and corporate compliance, ensuring that all aspects of your accounting needs are covered.
HLB Abu Dhabi to Assist!
Contact HLB Abu Dhabi today to learn more about our specialized Accounting Services for ADGM.
FAQS
Businesses in ADGM must maintain accurate accounting records in line with International Accounting Standards (IAS). Public companies must present financial accounts at general meetings, while private companies need to share their financial statements with members. Additionally, records must be kept for at least 10 years, and annual accounts must be filed with the ADGM Registration Authority.
HLB Abu Dhabi helps small companies determine eligibility for exemptions, making compliance easier. We also assist in managing necessary documentation to simplify the accounting process.
Our team is skilled in popular accounting software like QuickBooks and Xero, along with advanced tools to enhance our efficiency and accuracy.
HLB Abu Dhabi is a trusted provider in ADGM, committed to delivering tailored, high-quality services. We provide personalized support to ensure compliance and optimize your financial strategies.
As an approved auditor for ADGM, HLB Abu Dhabi understands the regulatory landscape. Our expertise ensures compliance while improving your financial reporting process, allowing you to focus on growing your business.
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