Annual renewal of a DMCC company in 2022
Since 2003, Healy Consultants Group PLC assists our multinational Clients to timely and accurately discharge their company’s annual company renewal obligations. In DMCC, this includes i) renewing licences and ii) completing accounting and tax obligations.
DMCC renewal steps
- Healy Consultants Group PLC sends a renewal reminder, along with renewal invoice and bank account details, to our Client.
- We acknowledge the Client’s payment, and e-mail the Client with a paid invoice, re-engagement letter and details about the engagement.
- Healy Consultants Group PLC pays the DMCC government renewal fee including i) trade license ii) lease and iii) establishment card.
Independent statutory annual audit
- A DMCC member company must upload the auditor’s signed and stamped Audited Financial Statements Summary Sheet and the Audited Financial Statements Report online within 90 days of the end of each financial year.
- Every DMCC member company must ensure that their appointed auditor is registered as an Approved Auditor with DMCC Authority and is on the Approved Auditors List (AAL). These rules do not apply to auditors appointed to audit DMCC member companies registered as a branch company (provided such a company has a group auditor).
- Healy Consultants Group PLC will assist you to prepare an audited financial statement complying with all DMCC regulations and requirements.
DMCC renewal fees
- Healy Consultants Group PLC fees as follows:
DMCC renewal services Fees (US$) Company renewal fees 1,000 Annual lease rental renewal 4,753 Establishment card renewal fees 497 License renewal fees 5,523 Accounting, audit, and tax fees Fees (US$) Active Company 4,950 Dormant Company 1,950
Accounting and tax considerations
- Value Added Tax (VAT) was introduced in the UAE on 1 January 2018. The general VAT rate is 5%. VAT applies to the majority of goods and services transactions. The UAE imposes VAT on tax-registered businesses on a taxable supply of goods or services at each step of the supply chain.
- A business must register for VAT if the taxable supplies and imports exceed the mandatory registration threshold of Dhs375,000. Furthermore, a business may choose to register for VAT voluntarily where the total value of its taxable supplies and imports (or taxable expenses) is more than the voluntary registration threshold of Dhs187,500.
Legal and compliance considerations
- DMCC companies must have economic substance in the UAE.
- The DMCC company must file an ESR notification to the DMCC authority, and pass the Economic Substance Test.
- If the company does not comply with ESR, it may be liable to the following penalties:
- Failure to file the ESR Notification within six months of the end of the financial year: Dhs20,000.
- Failure to file the ES Report within 12 months of the end of the financial year: Dhs50,000.
- Failure to pass the Economic Substance Test: Dhs50,000.