Keeping your company in good legal standing is as vital as starting it. Annual renewal and following the rules are both formalities and the foundation of your continued operation. The following guide will explore the key tasks you have to manage each year to keep your business active and compliant within the DMCC freezone.
Your annual renewal process:
Each year, you must renew your trade license. You will receive a notice from the authority with the amount due. This fee covers the renewal of your license and your company’s registration. You must also renew your office space agreement, whether it is a physical office or a virtual package. Paying these fees on time is very important to avoid late fines or service issues.
Submitting the annual audit:
A core rule for companies here is the submission of audited financial statements. This means a certified auditor must review your company’s accounts each year. You must prepare a balance sheet and a profit and loss account. The auditor’s signed report is then filed with the freezone. This step confirms your business is transparent and financially accountable.
Maintaining accurate records:
Good record keeping is a basic part of compliance. You must keep clear and current records of your company’s activities, finances, and shareholder details at your registered office address. This includes minutes of meetings and copies of all legal documents. The freezone may request to see these records to check you are following all rules.
Visa and employee compliance:
If you sponsor employees, you must follow specific rules. Ensure all employee visas are valid and renewed before they expire. If a staff member leaves the company, you must cancel their visa properly. Keeping employee records updated and following labor laws are essential to avoid penalties.
Staying informed on rule changes:
Freezone regulations can update. It is your responsibility to know about any new rules or changes to existing ones. Regularly check official communications from the authority. Using a professional registered agent can help you stay current and manage all these tasks correctly and on time.
By planning for these annual duties, you protect your business from risk. Setting reminders, working with a good auditor, and keeping organized records make renewal a smooth process, allowing you to focus on growth with peace of mind.
