Frequently Asked Questions
Find answers to the most common questions below.
Accounting firms offer a variety of services, including bookkeeping, tax preparation, payroll, auditing, consulting, and compliance.
The cost of services varies based on the size of the business and the specific services required. Quotes are transparent and customized for each client.
Yes, they can assist with VAT compliance, which includes registration, filing, advisory services, and audits.
Yes. The UAE Commercial Companies Law requires all businesses to maintain proper books of accounts and retain financial records for at least five years. Maintaining accurate records is essential for compliance, financial management, and preventing penalties.
Bookkeeping is the transactional, day-to-day process of recording financial data. Accounting uses this data for analysis, interpreting financial performance, and strategic decision-making. Accounting is more subjective and provides insights into the business’s financial position.
The UAE corporate tax rate is 9% for businesses with taxable profits exceeding AED 375,000. Businesses earning below this threshold are exempt from corporate tax.
The tax period is typically 12 months, and the first return filing deadline is generally nine months after the end of the financial year. Failure to register or file on time can result in penalties.
The standard VAT rate is 5% and was introduced on January 1, 2018.
Yes, our team is well-versed in UAE VAT laws and can help your business stay compliant with regulations.
Our team can analyze your financial situation and provide cost-saving strategies to help your business increase profitability.
Yes, we can assist with company formation, registration, and other legal requirements for setting up a business in Dubai.
Yes, we can help create accurate budgets and forecasts to help your business plan for the future and make informed financial decisions.
Our personalized approach, attention to detail, and commitment to client satisfaction set us apart as a leading accounting firm in Dubai.
Risians Accounting serves a diverse clientele, ranging from startups and Small and Medium-sized Enterprises (SMEs) to larger corporations across various industries. We tailor our services to meet the specific needs and scale of each business.
An internal audit is an internal process to assess a company’s risks and controls. An external audit is an independent, third-party review of financial statements to confirm their accuracy and compliance with accounting standards.
Frequently Asked Questions
Clear answers to the most common questions on UAE accounting, VAT, corporate tax, audit, and free zone compliance — from a Dubai-based FTA-certified firm.
Bookkeeping is the day-to-day recording of financial transactions — invoices, payments, bank entries. Accounting takes that recorded data and uses it for analysis, financial reporting, and strategic decision-making. Think of bookkeeping as the foundation and accounting as the structure built on top of it. Both are essential for a well-run business.
Yes. The UAE Commercial Companies Law requires all businesses to maintain proper books of accounts and retain financial records for a minimum of five years. Free zone authorities such as DMCC and DIFC impose the same requirement. Failure to maintain accurate records can result in regulatory penalties and complications during any FTA audit.
We provide a full range of accounting and bookkeeping services including:
- Ledger maintenance and bank reconciliation
- Accounts payable and receivable management
- Payroll processing and WPS compliance
- Financial statement preparation (P&L, balance sheet, cash flow)
- Backlog accounting and catch-up bookkeeping
- Monthly and quarterly management reporting
- Budgeting, forecasting, and cash flow planning
All work is carried out in compliance with IFRS and UAE regulatory requirements.
Outsourcing gives you access to a full team of qualified accountants for significantly less than the cost of a single in-house hire, once you factor in salary, visa, benefits, and office costs. You also avoid the risk of staff turnover affecting your records mid-year. Outsourced accounting with Risians means your books are always current, compliant, and handled by professionals who are up to date with UAE regulations. See our indicative pricing for monthly package costs.
Cash-basis accounting records income and expenses only when cash actually changes hands. Accrual-basis accounting records transactions when they are earned or incurred, regardless of when payment occurs. UAE businesses subject to VAT and corporate tax are generally required to use accrual-basis accounting. IFRS — which applies to most UAE businesses — also requires the accrual basis.
We work with a range of platforms including Xero, QuickBooks, Zoho Books, Tally, and Sage. If a client already uses a specific platform, we work within it. For new clients, we recommend the most appropriate solution based on business size, transaction volume, and reporting requirements. We also provide training to client staff where needed.
For most SMEs, monthly management accounts are the minimum recommended frequency. This gives you an accurate picture of profitability, cash position, and outstanding liabilities within 30 days of each month-end. Quarterly reporting is acceptable for very small or simple businesses, but monthly reporting is strongly preferred for any business with significant transaction volumes, VAT obligations, or investor reporting requirements.
A chart of accounts is the structured list of all financial accounts a business uses to record transactions — assets, liabilities, equity, income, and expenses. A well-designed chart of accounts makes financial reporting cleaner, simplifies VAT and corporate tax filing, and gives management better visibility over the business. A poorly structured one creates confusion and compliance risk. We set up and optimise charts of accounts as part of our onboarding process.
Backlog accounting means bringing financial records up to date when they have fallen behind — sometimes by months or even years. This is more common than most business owners expect, particularly for startups and rapidly growing SMEs. We regularly take on clients with significant backlogs and clear them efficiently, ensuring the business is fully compliant before any audit or tax filing deadline. Contact us for a free assessment of your backlog situation.
Yes. Beyond compliance bookkeeping, we provide budgeting, forecasting, and cash flow planning services. A 12-month rolling cash flow forecast helps you anticipate funding gaps, plan for VAT and corporate tax payment dates, and make confident decisions on hiring, capital expenditure, and expansion. We tailor forecasting models to the specific revenue patterns and cost structure of your business.
Fees depend on the size of your business, the volume of transactions, and the specific services required. We provide transparent, customised quotes — there are no hidden charges. See our pricing guide for indicative monthly ranges by business size, or contact us for a free estimate within 24 hours.
The standard UAE VAT rate is 5%, introduced on 1 January 2018 under Federal Decree-Law No. 8 of 2017. Certain goods and services are zero-rated or exempt, including specific categories of healthcare, education, and international transport.
VAT registration is mandatory for businesses with taxable supplies and imports exceeding AED 375,000 per year. Voluntary registration is available for businesses above AED 187,500. Free zone businesses are generally subject to the same rules unless operating within a Designated Zone.
Zero-rated supplies are taxable at 0% — the supplier charges no VAT but can still recover input VAT on related costs. Exempt supplies are outside the VAT system entirely — no VAT is charged, and input VAT on related costs cannot be recovered.
Common zero-rated supplies include exports of goods and services, international transport, and certain food items. Common exempt supplies include residential property rental and certain financial services. The distinction matters significantly for input tax recovery.
For more detail, see our VAT services page.
Late filing attracts a fixed penalty of AED 1,000 for the first offence, rising to AED 2,000 for any subsequent late filings within 24 months. Additional penalties apply for late payment of VAT due. We help clients set up filing calendars and reminders so deadlines are never missed. If an error has been made in a past return, see our FAQ on Voluntary Disclosure.
Output VAT is the VAT you charge your customers on taxable sales. Input VAT is the VAT you pay to your suppliers on purchases and expenses. Your VAT return nets these two figures. If output VAT exceeds input VAT, you pay the difference to the FTA. If input VAT exceeds output VAT, you have a recoverable surplus which can be offset against future returns or claimed as a refund.
If you discover errors in a previously submitted VAT return, you must file a Voluntary Disclosure with the FTA. Errors that result in a net underpayment of more than AED 10,000 must be disclosed. Proactively filing a Voluntary Disclosure reduces penalties compared to errors discovered during an FTA audit. Risians handles the full Voluntary Disclosure process, including assessment of the error, preparation of the disclosure, and FTA correspondence.
The FTA requires businesses to retain the following for a minimum of five years (15 years for real estate transactions):
- Tax invoices issued and received
- Credit and debit notes
- VAT ledger / tax ledger
- Import and export documentation
- Bank statements and payment records
- Contracts relevant to VAT treatment
- VAT return submissions and FTA correspondence
Most businesses file quarterly VAT returns. However, the FTA can require certain businesses to file monthly — this is common for businesses with higher transaction volumes or those that have previously had compliance issues. Your filing frequency is assigned by the FTA at registration and shown in your EmaraTax portal. Risians monitors all client filing deadlines and files returns on your behalf.
A UAE tax invoice must be issued for every taxable supply above AED 10,000, or on request for supplies below that threshold. It must include the supplier's TRN, the customer's TRN (if registered), a description of goods/services, the date, the taxable amount, the VAT rate applied, and the VAT amount charged. Simplified tax invoices (without buyer details) are permitted for supplies below AED 10,000 to non-registered customers.
Yes. We handle the full VAT compliance process — registration with the FTA, preparation and submission of VAT returns, reconciliation of input and output tax, and representation in the event of an FTA query or audit. We work with businesses across Dubai mainland, DMCC, DIFC, and other free zones. We are FTA-registered tax agents authorised to act on your behalf directly with the authority.
A VAT health check is an independent review of your VAT records, invoicing practices, return filings, and FTA correspondence to identify errors, under-claimed input tax, or areas of non-compliance before an FTA audit does. We recommend a VAT health check for any business that has not had its VAT position reviewed in the past 12 months, has recently changed accounting software, or is concerned about the accuracy of past returns. If errors are found, we handle the Voluntary Disclosure process. See our pricing section for VAT health check fees.
The UAE corporate tax rate is 9% on taxable profits exceeding AED 375,000 per financial year. Businesses with taxable profits at or below this threshold are subject to a 0% rate. The tax came into effect for financial years starting on or after 1 June 2023.
All UAE-resident juridical persons (companies and legal entities) and natural persons conducting business are subject to corporate tax. Free zone entities may qualify for a 0% preferential rate on qualifying income — see our free zone FAQ for conditions.
All taxable businesses must register for corporate tax with the FTA and obtain a Tax Registration Number (TRN). The tax return must be filed and any tax due paid within nine months of the end of the relevant tax period. For example: a business with a financial year ending 31 December 2024 has a filing deadline of 30 September 2025. Penalties apply for late registration, late filing, and underpayment.
Yes. Natural persons — including freelancers, consultants, and sole traders — are subject to UAE corporate tax if their business turnover exceeds AED 1 million in a calendar year. This applies regardless of whether they operate under a trade licence or a freelance permit. Below AED 1 million, natural persons are outside the scope of corporate tax.
Small Business Relief allows businesses with revenue of AED 3 million or less to elect to be treated as having zero taxable income for a tax period, effectively paying no corporate tax. This relief is available for tax periods ending on or before 31 December 2026. It is not automatic — it must be actively claimed. Businesses that elect this relief are still required to register and file a return. Risians advises on eligibility and manages the election process.
Yes. Tax losses can be carried forward and offset against taxable income in future periods, limited to 75% of taxable income in any single year. Losses cannot be carried back to prior years. There are also restrictions where there has been a significant change in ownership. Risians manages loss tracking and ensures carry-forward positions are correctly reflected in returns.
Related party transactions are transactions between entities or individuals that share a relationship — common ownership, family connections, or control. Under UAE corporate tax, these must be conducted at arm's length (as if between independent parties at market rates). Businesses with significant related party transactions are required to maintain transfer pricing documentation. Mispriced transactions can result in adjustments to taxable income and penalties. See our corporate tax services page for more.
An internal audit is conducted by or on behalf of the company itself to assess operational risks, internal controls, and process efficiency — it is a management tool. An external audit is an independent examination of financial statements by a licensed third-party auditor to confirm they give a true and fair view. External audits are required by law for many UAE entities and by free zone authorities as a condition of licence renewal.
DMCC requires that annual audits be conducted only by firms on its approved auditor list. Risians Accounting & Tax Consultancy is a DMCC Approved Auditor, which means we are authorised to sign off on audits for DMCC-registered companies. Using a non-approved auditor will result in your audit being rejected by DMCC and your licence renewal being delayed. If your company is registered in DMCC, always confirm your auditor is on the approved list before engaging them.
Anti-Money Laundering (AML) compliance under UAE Federal Decree-Law No. 20 of 2018 applies to Designated Non-Financial Businesses and Professions (DNFBPs) — a category that includes accountants, auditors, real estate agents, dealers in precious metals and stones, and company service providers.
If your business is a DNFBP, you are required to:
- Register on the goAML portal
- Conduct customer due diligence (CDD) and know-your-customer (KYC) checks
- Maintain AML policies and procedures
- File Suspicious Transaction Reports (STRs) where required
Non-compliance carries severe penalties including fines and business suspension. Read our full article: Your Business is an AML Risk and You Don't Know It Yet.
For a straightforward SME with clean, well-maintained records, an audit typically takes two to four weeks from the date all documents are provided. Businesses with complex transactions, significant related party dealings, multiple entities, or backlogs can take longer. The most common delay is incomplete or disorganised records — which is precisely what ongoing bookkeeping with Risians prevents. See our audit fee guide for indicative costs.
Typically you will need to provide:
- Prior year audited or management accounts
- Trial balance for the period under review
- Bank statements for all company accounts
- Sales and purchase invoices (sample or full population depending on volume)
- Payroll records and WPS confirmation
- Fixed asset register
- Loan agreements and financing documents
- Related party transaction details
- VAT return submissions
We provide a full document checklist to clients at the start of every engagement so nothing is missed.
An auditor issues a qualified opinion when they are unable to obtain sufficient audit evidence on a specific matter, or when the financial statements contain a material misstatement in a limited area. A qualified opinion is different from an adverse opinion (which indicates pervasive misstatement) or a disclaimer of opinion. A qualified opinion should always be investigated — free zone authorities may reject audited accounts with qualifications and require resubmission. Risians works to resolve issues before signing any opinion.
This depends on your legal structure and the free zone or mainland authority governing your licence. DMCC-registered companies are required to submit audited financial statements annually to renew their licence. Most other free zones have the same requirement. Mainland limited liability companies are also required to maintain audited accounts under the UAE Commercial Companies Law. We can confirm the specific requirements for your entity type — contact us for a free assessment.
This depends on the specific free zone licence and the nature of the services or goods. Service-based free zone companies can generally provide services to mainland clients, though this may affect their Qualifying Free Zone Person status for corporate tax. Trading companies face more restrictions — they generally cannot sell goods directly into the UAE mainland without using a mainland distributor or establishing a branch. This is a frequently misunderstood area that has direct tax and compliance implications. Seek specific advice before invoicing mainland clients.
Yes. Free zone companies are subject to the same bookkeeping obligations as mainland companies under UAE law. They are also required to register for and file UAE corporate tax returns. Free zone companies that qualify as Qualifying Free Zone Persons (QFZPs) may benefit from a 0% rate on qualifying income — but they are still required to register, file, and maintain proper records to demonstrate eligibility. VAT registration rules also apply equally to free zone companies (with the exception of Designated Zones for specific goods).
The Wages Protection System (WPS) is a UAE government initiative administered by the Ministry of Human Resources and Emiratisation (MOHRE) that requires private sector employers to pay employee salaries through a designated financial institution and submit electronic salary data to MOHRE each month. All companies employing staff under a UAE mainland or free zone trade licence are required to comply. Failure to pay wages on time or to submit WPS files carries significant penalties including fines, work permit freezes, and potential prosecution. Risians prepares WPS-compliant payroll files for all our payroll clients.
Under UAE Labour Law (Federal Decree Law No. 33 of 2021), employees who complete at least one year of continuous service are entitled to an end-of-service gratuity calculated as follows:
- First 5 years of service: 21 calendar days' basic salary per year
- After 5 years of service: 30 calendar days' basic salary per year
Gratuity is calculated on basic salary only — excluding housing, transport, and other allowances. It is capped at a maximum of two years' total basic salary. Employers are required to accrue this liability in their accounts. Risians calculates and accrues gratuity correctly as part of monthly payroll processing and ensures the liability is correctly reflected in your financial statements.
Payroll fees are based on the number of employees processed each month:
- 1–5 employees: AED 300 – 600 per month
- 6–15 employees: AED 600 – 1,200 per month
- 16–30 employees: AED 1,200 – 2,000 per month
- 31–100 employees: AED 2,000 – 4,500 per month
- 100+ employees: Quoted individually
Payroll fees include WPS file preparation, payslip generation, payroll journal entries, and monthly payroll reporting. End-of-service / gratuity calculations and MOHRE-related services are included for ongoing clients.
There is no personal income tax in the UAE for employees — salaries are received gross and employees have no UAE income tax filing obligation. Employers are also not required to withhold any payroll tax. However, employers must comply with WPS requirements and properly account for end-of-service gratuity accruals. The only business-level tax applicable to UAE entities is corporate tax, which applies at the company level — not the employee level.
If salaries are not paid within the required timeframe (generally within 10 days after the due date), MOHRE can impose the following penalties on the employer:
- Work permit ban — preventing the company from hiring new employees
- Financial penalties — fines per employee affected
- Company classification downgrade — affecting the company's ability to transact with MOHRE
- In serious cases, referral to the courts
Risians ensures all payroll is processed and WPS files are submitted ahead of deadlines each month.
The UAE Economic Substance Regulations (ESR), introduced in 2019, require UAE entities that carry out certain Relevant Activities to demonstrate that they have adequate economic substance in the UAE — meaning genuine operations, management, employees, and expenditure in the country. Relevant Activities include:
- Banking, insurance, and investment fund management
- Lease-finance business
- Headquarters business
- Shipping
- Holding company business
- Intellectual property (IP) business
- Distribution and service centre business
Entities conducting Relevant Activities must file an ESR notification and, if required, an ESR report with their relevant regulatory authority. Failure to comply carries penalties of up to AED 400,000. Risians advises on ESR applicability and manages the notification and reporting process.
A Ultimate Beneficial Owner (UBO) is the natural person who ultimately owns or controls a company — defined in the UAE as any individual holding a minimum of 25% direct or indirect shareholding, or who exercises effective control over the entity. Under UAE Cabinet Decision No. 58 of 2020, all UAE companies (mainland and most free zones) are required to:
- Maintain a UBO register disclosing all beneficial owners
- File UBO information with their relevant regulatory authority
- Update the register within 15 days of any change in beneficial ownership
Failure to maintain and submit UBO information carries significant penalties. Risians assists clients with UBO registration and ensures registers are kept up to date as ownership changes.
The goAML portal is the UAE Financial Intelligence Unit's (FIU) system for reporting suspicious financial transactions and for fulfilling AML/CFT compliance obligations. All Designated Non-Financial Businesses and Professions (DNFBPs) — including accountants, auditors, real estate agents, lawyers, and dealers in precious metals — are required to register on the goAML portal and submit Suspicious Transaction Reports (STRs) and Suspicious Activity Reports (SARs) when required. Registration is also required for businesses under the CBUAE's regulatory scope. Non-registration is a serious compliance breach. Read more in our article: Your Business is an AML Risk and You Don't Know It Yet.
Penalties for non-compliance with UAE AML obligations are severe and include:
- Administrative fines of up to AED 1 million per violation
- Business suspension or revocation of trade licence
- Criminal prosecution of responsible individuals
- Reputational damage and difficulty maintaining banking relationships
The UAE is actively enforcing AML regulations across all DNFBP categories. Risians provides AML compliance frameworks, risk assessments, and goAML registration support.
UAE corporate banking is more stringent than many other jurisdictions. Banks conduct thorough KYC (know your customer) checks and typically require:
- Trade licence and MOA / shareholder documents
- Passports and Emirates IDs of all shareholders and signatories
- Business plan or description of activities
- Source of funds documentation
- Evidence of premises (tenancy contract or Ejari)
Clean, well-organised corporate documents and a clear business narrative significantly improve the likelihood of account approval. Risians assists clients with document preparation and bank account opening support.
UAE banks require audited financial statements as part of their credit underwriting and ongoing KYC processes for business accounts and lending facilities. Most banks require accounts to be no more than 12–18 months old. Accounts prepared in accordance with IFRS and signed by a licensed auditor carry significantly more weight than management accounts or internally prepared statements. Businesses with outdated or unaudited accounts often face account closure notices or difficulty obtaining credit facilities. See our audit FAQ for more on external audit requirements.
A management accounts letter (sometimes called a financial position letter or interim accounts letter) is a summary of your company's financial position — revenue, expenses, assets, and liabilities — prepared by your accountant for a specific period, typically the current year to date. Banks request this when audited accounts are not yet available for the most recent period. The letter should be on the accounting firm's letterhead and signed by a qualified accountant. Risians prepares management accounts letters for clients on request, typically within 2–3 business days.
Yes. Banks periodically review account documentation and may issue notices requesting updated trade licences, audited accounts, source-of-funds declarations, or KYC refreshes. If you have received such a notice, acting quickly is critical — banks in the UAE will close accounts with limited notice if documentation is not provided. Risians can rapidly prepare the required financial documents and liaise with your relationship manager to support the compliance process. Contact us on +971 52 341 4327 if this is urgent.
We work with startups, SMEs, and larger corporations across a wide range of industries — trading, consulting, hospitality, real estate, technology, and professional services. We serve clients on the Dubai mainland and across free zones including DMCC, DIFC, Dubai Silicon Oasis, and JAFZA. Whether you are a newly incorporated company or an established business, we tailor our services to your size and structure.
Three things consistently stand out with our clients:
- DMCC Approved Auditor — a credential most firms cannot claim, and essential for DMCC licence holders.
- FTA-registered and up to date — our tax team is current on all UAE Ministry of Finance and FTA guidance, not just the original legislation.
- Partner, not just a service provider — we proactively flag issues, recommend improvements, and help you plan ahead rather than simply processing transactions.
We also work in both English and Arabic and serve clients whose owners and management are based outside the UAE.
Yes — and we do this regularly. The transition process involves receiving existing records and files, reviewing the current state of bookkeeping and compliance, identifying any gaps or issues, and then taking over on an agreed date. We manage the transition smoothly and ensure there is no interruption to your compliance obligations. We also provide an honest assessment of the current state of your records as part of onboarding — so you know exactly where you stand from day one.
Yes. We work with UAE subsidiaries and branches of international groups, including entities that require consolidated reporting, transfer pricing documentation, and liaison with overseas group auditors. We are familiar with the requirements of common group-level reporting frameworks and can work within your existing group reporting calendar. We also advise on Tax Group formation where multiple UAE entities under common ownership could benefit from combined filing.
For most clients, we can begin within 2–5 business days of signing an engagement letter and receiving initial documentation. For urgent situations — such as an upcoming audit deadline, an FTA query, or a bank documentation request — we can mobilise same-day in many cases. Call us on +971 52 341 4327 to discuss your timeline and we will give you a realistic start date immediately.
Most of our work is delivered fully remotely. Documents can be shared via secure cloud platforms, and communication takes place by email, WhatsApp, and video call. An in-person meeting is available at our office — Office No. 1802, 18th Floor, 48 Burj Gate, Downtown Dubai — but is not required. Many of our clients are based outside the UAE and we manage their full compliance remotely from day one.
Book a free 30-minute consultation via our website or call us directly on +971 52 341 4327. We will review your current situation, confirm your compliance requirements, and give you a clear proposal within 24 hours. There is no obligation and no cost. Email us anytime at enquire@risiansaccounting.com.
A mainland company (licensed by the DED or equivalent emirate authority) can trade anywhere within the UAE and internationally. A free zone company is licensed by a specific free zone authority and generally operates within that zone or internationally — but faces restrictions on direct trading with the UAE mainland. Each structure has different cost profiles, visa quotas, activity permissions, and accounting/tax implications. The right choice depends on your business model and target market. See our company formation services for guidance.
Qualifying Free Zone Persons (QFZPs) can benefit from a 0% corporate tax rate on their Qualifying Income. To maintain this status, a free zone entity must:
- Maintain adequate substance in the UAE
- Derive income from Qualifying Activities as defined by the Ministry of Finance
- Not elect to be subject to the standard corporate tax regime
- Comply with transfer pricing rules
- Not earn income from mainland UAE sources beyond the permitted threshold
Free zone businesses that fail to meet these conditions will be subject to the standard 9% rate on all taxable income — not just the mainland portion. This is a critical area where early advice is essential. See our overview of corporate tax rates.
A Designated Zone is a specific geographic area defined by the UAE Cabinet that is treated as outside the UAE for VAT purposes in relation to certain goods. Transactions of goods within a Designated Zone between VAT-registered businesses can be treated as outside the scope of UAE VAT, subject to specific conditions. Examples include Jebel Ali Free Zone (JAFZA) and certain areas in Abu Dhabi. The rules are complex — particularly where goods move between a Designated Zone and the mainland — and incorrect treatment is a common source of VAT errors.
We work with businesses across all major UAE free zones including:
- DMCC — Risians is a DMCC Approved Auditor
- DIFC (Dubai International Financial Centre)
- Dubai Silicon Oasis (DSO)
- JAFZA (Jebel Ali Free Zone)
- Dubai South / DWC
- RAK ICC and RAK Economic Zone
- ADGM (Abu Dhabi Global Market)
- Sharjah and Northern Emirates free zones
We are familiar with the specific audit, accounting, and compliance requirements of each authority.
IFRS (International Financial Reporting Standards) is the recognised accounting standard in the UAE. Publicly listed companies are required to follow full IFRS. Most private companies follow either full IFRS or IFRS for SMEs. Free zone authorities and mainland licence renewals typically require IFRS-compliant financial statements. Using a different accounting basis can result in financial statements being rejected by free zone authorities or banks.
IFRS for SMEs is a simplified version of full IFRS, designed for entities that do not have public accountability (i.e., are not listed on a stock exchange and do not hold assets in a fiduciary capacity). It reduces required disclosures and simplifies certain recognition and measurement rules. For most UAE SMEs not seeking international investment or bank facilities requiring full IFRS accounts, IFRS for SMEs is appropriate and significantly less burdensome. Risians advises on the most suitable framework for each client.
IFRS 16 (effective from 2019) requires lessees to recognise most leases on the balance sheet as a right-of-use asset and a corresponding lease liability — rather than treating lease payments purely as operating expenses. This applies to office leases, warehouse leases, and vehicle finance leases. The practical effect is that balance sheets of lease-heavy businesses look very different under IFRS 16. Banks and investors are aware of this. Risians ensures all lease arrangements are correctly classified and accounted for.
Note: Many UAE businesses — particularly those that moved from older accounting practices — have not yet correctly applied IFRS 16. This is a common finding in external audits.
Monthly fees are based primarily on transaction volume and reporting requirements:
| Business Size | Est. Monthly Fee | Typical Scope |
|---|---|---|
| Startup / Freelancer | AED 500 – 900 | Up to ~50 transactions/month, basic P&L, bank reconciliation |
| Small SME | AED 900 – 2,000 | 50–200 transactions, VAT filing, management accounts |
| Growing SME | AED 2,000 – 4,500 | 200–500 transactions, payroll, full monthly reporting |
| Mid-Size Company | AED 4,500 – 9,000+ | 500+ transactions, multi-entity, consolidated reporting |
Contact us for a free consultation — we provide a clear cost estimate within 24 hours.
| Business Type | Estimated Fee (AED) | Notes |
|---|---|---|
| Startup / Dormant | AED 2,500 – 4,500 | Minimal activity, simple financials |
| Small Active SME | AED 4,500 – 8,000 | DMCC / free zone licence renewal |
| Mid-Size SME | AED 8,000 – 18,000 | Higher volume, multiple accounts |
| Complex / Group Entity | AED 18,000+ | Related parties, multiple jurisdictions |
- VAT registration (one-time): AED 500 – 1,200
- Quarterly VAT return preparation and filing: AED 400 – 1,500 per return
- VAT health check / compliance review: AED 1,500 – 4,000
- Voluntary Disclosure preparation: AED 1,500 – 5,000
- FTA audit representation: Quoted individually based on scope
Clients using Risians for ongoing bookkeeping typically receive VAT filing as part of their monthly package at reduced or no additional cost.
Yes. Most clients take a combined package covering bookkeeping, VAT filing, payroll, and management reporting — priced as a single monthly retainer. Bundled pricing is typically 15–25% lower than combining individual service rates. We also offer annual packages for audit + corporate tax filing at a fixed all-in fee. Speak to us and we will build a clear, itemised proposal.
The main options are:
- Mainland LLC — 100% foreign ownership now permitted in most activities following 2021 reforms
- Mainland Sole Establishment / Civil Company — for professional services
- Free Zone Company (FZE/FZCO/LLC) — structure varies by free zone
- Branch of a Foreign Company — extends an existing overseas entity into the UAE
- Representative Office — limited to market research, no commercial activities
Choosing the wrong structure creates accounting, tax, and operational complications that are difficult and costly to unwind. Risians advises on the optimal structure for your business. See also our free zone vs mainland FAQ.
Depending on your business, you may need:
- Corporate tax registration with the FTA — required for all businesses
- VAT registration if taxable supplies exceed or are expected to exceed AED 375,000 per year
- WPS registration with MOHRE if you employ staff
- DIFC / ADGM equivalent registrations if operating in those jurisdictions
- AML / goAML registration if your business is a DNFBP
Getting these right from the start avoids late registration penalties. Risians manages the full registration process for new clients.
Book a free 30-minute consultation via our website or call us directly on +971 52 341 4327. We will review your current situation, confirm your compliance requirements, and give you a clear proposal within 24 hours. There is no obligation. We also work with international businesses and group structures, and can take over seamlessly from your current accountant. Our team works in English and Arabic.
Still have questions?
Book a free 30-minute consultation — we respond within 24 hours.