Audited Financial Statement for IFZA License Renewal in UAE

If your company is under the International Free Zone Authority (IFZA), there’s a change you simply can’t ignore. From 30 September 2025, companies renewing their IFZA license will need to attach financial statements as part of the process.

Not every business has to go through a full audit. Smaller firms with limited turnover can stick to a simplified statement, while bigger companies will need the complete audited report. It really comes down to your staff size and annual revenue.

This isn’t just another piece of red tape. Miss this requirement and your renewal could get delayed or worse, rejected. In other words, your entire ability to operate in IFZA depends on getting it right.

So what does this rule really mean, and how can you prepare without turning it into a last-minute fire drill? Let’s break it down!

Who Needs to Submit Audited Financial Statement (AFS) for License Renewal?

From 30 September 2025, IFZA companies can’t renew their trade licenses without sharing their financial records. What you’ll need to file depends on the size of your business. A small consultancy or startup might get by with a short and simplified statement, while a bigger firm with more revenue and staff will have to go through a complete audited report.

1. Simplified Financial Statement (SFS)

You qualify for this if both apply:

• Your annual turnover is AED 3 million or less.
• You have 9 or fewer employees.

The SFS is lighter than a full audit, making it ideal for freelancers, small startups, and low-volume businesses.

2. Full Audited Financial Statement

You must prepare a full audit if either applies:

• Your annual turnover is above AED 3 million, or
• You employ 10 or more staff.

These audits must be carried out by an IFZA-approved auditor, and the results must be submitted digitally through the IFZA portal. Xact Auditing is one of the best audit firms in UAE providing best financial audit services for IFZA.

Why IFZA Made Audited Financials Compulsory?

The decision to submit Audited Financial Statement (AFS) for IFZA license renewal was issued under Administrative Resolution No. 001/2025. The main goals are:

• To bring transparency to financial reporting.
• To align IFZA businesses with international standards like IFRS.
• To improve the credibility of companies with banks, investors, and regulators.

In short, IFZA wants businesses to work on transparent, accurate financials instead of guesswork.

Common Errors to Avoid in IFZA License Renewal

Businesses often run into problems not because of complexity, but due to avoidable errors. Here are the most common issues:

• Delaying the audit: Audits take weeks, not days. Waiting until renewal month can result in missed deadlines.
• Choosing a non-approved auditor: Only IFZA-approved auditors are accepted. Using another firm means repeating the process.
• Wrong reporting period: Submitting mismatched financial years can cause rejection.
• Ignoring the simplified option: Some smaller businesses pay for full audits when they qualify for an SFS.

How to Prepare for Audited Financials for IFZA License Renewal?

A little preparation goes a long way. Here’s how to make sure you’re ready:

1. Check your business size: Confirm turnover and employee numbers to know if you need a full audit or an SFS.
2. Start early: Reach out to an IFZA-approved auditor well before September 2025.
3. Organize financial documents: Keep invoices, payroll, bank records, and contracts ready for review.
4. Plan with your renewal date: Ensure the audit is completed before applying for renewal.
5. Go digital: IFZA accepts only electronic submissions through its portal.

Why Choose Xact Auditing for Your IFZA Renewals?

The new IFZA audit rule is a big shift for Dubai businesses. But it doesn’t have to feel heavy. Some firms need a Simplified Financial Statement. Others must file a full audit. What matters most is starting early, keeping your books in order, and choosing an IFZA-approved auditor.

At Xact Auditing, we guide you step by step. We prepare audit, and file your reports on time. That way, your license renewal is smooth and stress-free. We are offering best audit services in Dubai.

Ready to renew your license without hassle? Xact will assist you with the Audited Financial Statement (AFS) at a reasonable price. Let’s make your 2025 IFZA renewal simple and compliant.