- +971-4-572 9701
- chirag@athosauditors.com
| Requirement | What an HFZA company should know |
|---|---|
| Authority | Hamriyah Free Zone Authority, located in Sharjah, UAE |
| Auditor | An FZE or FZC appoints auditors from among those approved by HFZA |
| Standard deadline | The published FZE and FZC rules specify delivery within three months after the financial year-end, or a longer period determined by HFZA |
| Company approval | Directors approve the annual accounts; at least one director signs the balance sheet and profit and loss account |
| Submission | Annual accounts are delivered with the duly signed auditor’s report |
| Corporate Tax | A separate UAE Corporate Tax audit requirement may also apply, including to a Qualifying Free Zone Person |
| Best time to appoint Athos | Before year-end when inventory is material; otherwise, as soon as the annual books are closed |
The cited three-month deadline and approved-auditor requirements apply expressly to both FZEs and FZCs. A branch, dormant entity or company relying on a waiver, undertaking or other company-specific arrangement should confirm its current requirement directly with HFZA in writing. Athos Auditors can help identify the questions that need to be confirmed before the engagement begins.
| Financial year-end | Standard three-month submission target |
|---|---|
| 31 December | 31 March of the following year |
| 31 March | 30 June |
| 30 June | 30 September |
| 30 September | 31 December |
A longer period should not be assumed. HFZA publishes an Audit Submission Undertaking, under which a company promises submission by a stated date, and an Audit Waiver Undertaking describing a temporary waiver from submission for specified years. Availability and acceptance depend on HFZA’s current procedures and the company’s circumstances. Do not treat either as an extension or permanent audit exemption unless HFZA confirms that treatment in writing.
Athos recommends starting well before the last month. Time is required to close the accounts, reconcile balances, obtain bank and third-party confirmations, test transactions, address audit differences, complete technical review and arrange director approval and signatures.
An approved auditor independently examines the annual financial statements and underlying records. Under the FZE rules, the auditor reports to the shareholder; under the FZC rules, the auditor reports to the shareholders. In each case, the report addresses whether the annual accounts were properly prepared under the applicable rules and give a true and fair view.
An external financial-statement audit is different from bookkeeping, an internal audit, a Corporate Tax review, an AML review or a fraud investigation. When conducted under the applicable auditing standards, it provides reasonable assurance rather than a guarantee that every error, fraud or regulatory breach has been found.
Athos plans the audit according to risk and materiality. Depending on the business, procedures may include:
Providing a complete audit file at the start helps Athos work efficiently and reduces repeated queries. The exact list depends on the company’s activity and reporting history.
Hamriyah Free Zone is an important industrial and logistics centre. For manufacturers, traders and warehouse operators, Athos may request:
If inventory is material, appoint Athos before the physical count. Missing the count may require alternative procedures and can create an audit scope limitation.
Athos discusses the legal entity, financial year-end, business activities, ownership, accounting system, inventory locations, reporting framework and desired completion date. Independence and client-acceptance checks are completed before an engagement letter is issued.
The engagement letter defines the responsibilities, deliverables and fee. Athos issues a tailored document request and agrees the dates for fieldwork, query resolution, draft reporting and final approval.
The team learns how the company earns revenue, buys goods, holds inventory, pays suppliers, records related parties and closes the accounts. The audit plan focuses on balances and disclosures with a higher risk of material misstatement.
Athos obtains and evaluates audit evidence through inspection, confirmation, recalculation, analytical procedures, observation and selected transaction testing. The procedures performed depend on risk, materiality and the company’s circumstances.
Management receives an organised outstanding-items list. Audit differences, accounting treatments and disclosure points are discussed with the finance team, allowing responsible management to decide and approve any changes.
Management and the directors remain responsible for the accounts and financial statements. After the required evidence, approvals and representations are complete, Athos finalises and signs the independent auditor’s report and provides the agreed HFZA submission support.
| Period | Company actions | Athos actions |
|---|---|---|
| Before year-end | Appoint auditor; plan stock count; reconcile key accounts | Plan engagement; assess inventory attendance and confirmations |
| Days 1–20 | Close ledgers and prepare schedules | Begin early testing and external confirmations |
| Days 20–50 | Submit evidence and answer queries | Complete fieldwork, testing and technical review |
| Days 50–70 | Review proposed adjustments and disclosures | Prepare draft report and complete audit file |
| Days 70–80 | Obtain director approval and signatures | Complete partner and quality review |
| Before deadline | Complete the required HFZA submission | Deliver signed report and agreed submission support |
The audit timeline depends on the condition of your accounting records and the complexity of your business. Audits may take longer where records are incomplete, inventory is held at multiple locations, tax matters are pending, group reporting is required, or supporting documents are missing.
The HFZA annual audit obligation and UAE Corporate Tax audited-financial-statement rules can apply to the same company, but they arise from different requirements.
HFZA’s published FZE and FZC rules address annual accounts, appointment of auditors approved by HFZA and delivery to the relevant HFZA unit within the stated period, subject to HFZA’s powers and any valid company-specific written treatment.
Ministerial Decision No. 84 of 2025 expressly requires every Qualifying Free Zone Person (QFZP) to prepare and maintain audited financial statements. The FTA Free Zone Persons guide likewise explains that this applies regardless of revenue.
For tax periods commencing on or after 1 January 2025, Ministerial Decision No. 84 of 2025 requires (i) every QFZP and (ii) every Taxable Person that is not a Tax Group and derives revenue exceeding AED 50 million in the relevant tax period to prepare and maintain audited financial statements. A Tax Group must prepare and maintain audited special-purpose financial statements.
Being in Hamriyah Free Zone does not make all income automatically tax-free. A QFZP can benefit from a 0% Corporate Tax rate on Qualifying Income when all conditions are met. Other taxable income may be subject to 9%, and registration, return filing, transfer pricing and record-keeping obligations may still apply.
Athos can coordinate the audit timetable with a separate Corporate Tax review while maintaining the required audit independence.
Athos raises these matters early and distinguishes independent audit procedures from accounting or advisory assignments that may require separate independence safeguards.
To obtain an urgent scope assessment, send Athos:
Athos provides a written quotation after reviewing the likely scope. The fee depends on:
Athos confirms the scope, assumptions, responsibilities, fee and expected timetable before work starts. This gives management a clear basis for comparing proposals and preparing the audit file.
No. HFZA requires companies to use an auditor approved by Hamriyah Free Zone Authority. Holding a UAE audit licence or being approved by another free zone does not automatically mean the auditor is authorised to carry out an HFZA audit.
The first financial year of a new HFZA Free Zone Establishment (FZE) starts from the date of incorporation shown on its Certificate of Formation.
The first financial year can be between 6 and 18 months, with the financial year-end determined by a shareholder resolution. After the first financial year, the company normally follows a 12-month financial year.
HFZA companies are normally required to submit their annual accounts within three months after the end of their financial year. This does not mean every company has the same submission date, as the deadline depends on the company’s financial year-end.
HFZA may also allow a longer submission period in certain cases. Companies should therefore follow any specific deadline or extension issued by the Authority.
Speak directly with Athos Auditors about your Hamriyah Free Zone annual audit, financial year-end and accounting records. The team will review the enquiry, identify the initial documents needed and provide a clear scope, professional fee and expected timetable where the engagement can be accepted.
Athos Auditors LLC
Office 515, AB Center Building
Al Barsha 1, Sheikh Zayed Road
Dubai, United Arab Emirates
Phone: +971 4 572 9701
Email: chirag@athosauditors.com