Maintaining Records of Accounts in DWC FZ

Every Free Zone Enterprise must keep proper records of account prepared in accordance with International Financial Reporting Standards (IFRS) and be sufficient to show andexplain: (i) the assets and liabilities of the Free Zone Enterprise; and (ii) all transactionswhich show money received and expended by the Free Zone Enterprise on a day to day basis together with information sufficient to identify and explain such receipts and expenditure.

 The records of account must be kept at the Registered Office and shall be available for inspection. If a Free Zone Enterprise fails to allow for inspection of the records of account the matter may be referred to the Corporation and the Corporation may order the Free Zone Enterprise to immediately arrange for inspection of the records of account.

 The first financial year of a Free Zone Enterprise will commence on the date of its incorporation or registration. The first financial year may not exceed 18 months, thereafter each successive financial year may not exceed 12 months or be shorter than 6 months.

No later than 18 months after the incorporation or registration of the Free Zone Enterprise, and for every financial year thereafter, the Free Zone Enterprise must prepare a balance sheet and a profit and loss account (as at the last day of the financial year) which will form part of the Free Zone Enterprise's financial statements. The Free Zone Enterprise's financial statements must be drawn up so as to give an accurate and fair view of the profits or losses of the Free Zone Enterprise and the state of affairs of the Free Zone Enterprise, in each case, for the financial period in question.Where a DWC limited liability company owns 50% or more or otherwise controls another Free Zone Enterprise or other incorporated entity, the DWC limited liability company should prepare group accounts on a consolidated basis.

The annual accounts of each DWC limited liability company must be approved by the Board of Directors and signed off by at least one Director within 3 months of the end of each financial year before being presented to the shareholders. A copy of the signed annual accounts (together with the auditors' report set out in Section 6.15) must then be delivered to the Free Zone Department within 30 days of such approval and signature.The Corporation may, in its absolute discretion, agree to extend the aforementioned periods.