Simplified Audited Financial Statement for IFZA License Renew

Get a Simplified Audited Financial Statement for IFZA license renewal with Xact Auditing. Fast, compliant, and IFZA-approved audit services to ensure smooth license renewal.

There’s been a big change for IFZA businesses lately. Under Administrative Resolution No. 001/2025, companies now need to submit Audited Financial Statements when renewing their license. The rule kicked in after 30 September 2025, so it’s already active.

It’s not something to stress about, but it’s definitely something you can’t skip anymore. Let’s go through what this update means and how you can handle it smoothly.

Simplified Audited Financial Statements Option

Not every company needs to go through a heavy, full audit. IFZA now allows Simplified Financial Statements for smaller businesses that meet these two conditions:

• Your yearly turnover is AED 3,000,000 or less
• You have nine employees or fewer during the financial year.

If your business fits here, this route is quicker and less detailed but still fully compliant with the new rule. From now on, IFZA wants every renewal to come with Audited Financial Statements that cover the last completed financial year. 

Businesses in IFZA with a turnover of over AED 3 Million still have to submit detailed financial audit report in IFZA for the renewal of the license.

Why IFZA Requires an Audited Financial Statements?

Think of this as a clean-up move. IFZA wants to make sure all companies under its wing have proper financial documentation. When businesses keep their records in order, the authority can track economic growth better, and you, as an owner, get a clearer view of your numbers, too.

There’s a benefit for you as well. Having audited statements ready makes it easier to get investors, apply for funding, or even sell your company in the future. It builds trust and shows that your business runs properly. 

It’s straightforward and gives IFZA exactly what they need without making things complicated. It also helps both the authority and businesses keep proper track of financial performance and accountability.

What the Simplified AFS includes?

A simplified statement skips the extra fluff and keeps it clear. Usually, it includes:

• A short summary of your company’s financial activities
• A list of income and expenses
• A basic balance sheet showing assets and liabilities
• A quick auditor’s note confirming everything is accurate.

Documents Required for IFZA Audit

Below are the essential documents and records typically required to prepare a Simplified Audited Financial Statements for IFZA license renewal:

1. Company Registration & Legal Documents

• Trade License (current and previous copies)
• Memorandum & Articles of Association (MOA / AOA)
• Office lease agreement or Ejari (if applicable)

2. Financial Records

• Trial Balance for the financial year
• General Ledger
• Chart of Accounts
• Monthly or yearly financial statements (if prepared)

3. Bank Information

• Bank Statements for the entire audit period (all business accounts)

4. Sales & Revenue Records

• Sales invoices
• Revenue summary
• Contracts/agreements for business income

5. Expense Records

• Purchase invoices
• Expense bills and receipts
• Staff salary records (if applicable)
• Rent, utilities, marketing, and other operational expenses

6. Asset & Liability Information

• Fixed asset list (computers, furniture, equipment, etc.)
• Loan or liability agreements
• Payables and receivables summary

7. VAT &  Corporate Tax Documents

• VAT registration certificate (TRN)
• Filed VAT returns
• Tax invoices issued and received
• Corporate Tax registration

How Xact Auditing Can Help You?

For many business owners, financial reports feel like another task on an endless list. That’s where Xact Auditing steps in.

We work with IFZA companies every day, so we already know the exact reporting format, what details are required, and how to make sure your submission is approved without delays.

When you work with us, you get:

• Simple guidance on what records you need to share
• An accurate, properly prepared statement ready for IFZA
• Help with any clarification the authority might request
• A smooth, stress-free license renewal

We don’t just fill out forms; we actually explain what your numbers mean and how to use them to improve your next financial year.

Ready to Renew your IFZA License? Let’s Get It Done

If your IFZA license renewal is coming up, this is the right time to get your financials sorted. Gather your invoices, bank statements, and receipts from the past year, and let Xact Auditing handle the rest.

We’ll prepare your report, whether it’s a Simplified Financial Statement or a full Audited Financial Statement, and make sure it’s ready for submission.