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Ajman Free Zone Audit Readiness and Compliance
Ajman Free Zone hosts trading, light industrial and service companies that benefit from low setup costs. We keep their accounts ready for authority requests, banks and corporate tax.
Paperwork to keep up to date
- Licence, lease and shareholder documents
- Revenue analysis split by qualifying and non-qualifying income
- Bank reconciliations at year-end
- Contracts supporting major income and cost items
- Fixed asset register and depreciation workings
- Evidence of staff, premises and decision-making in the UAE
Keeping low-cost setups properly documented
A lean company in Ajman Free Zone may have one flexi-desk, one or two staff and a handful of customers. That is perfectly workable, but the paperwork still has to stand on its own. Keep the lease or desk agreement, the licence and the visa file for each employee. Also keep a signed contract for every customer that brings in material revenue.
Reviewers and banks tend to ask the same question of small setups: where does the work actually happen? Records such as timesheets, supplier invoices for local services and payroll through WPS give a clear answer. They also support the substance a Qualifying Free Zone Person needs to show.
Trading goods through the zone
If you buy and resell goods, the stock record is your strongest piece of evidence. Record each purchase with its supplier invoice, shipping document and customs paperwork, then each sale with the delivery proof. Landed costs such as freight and clearing fees should be added to the cost of the goods they relate to.
At year-end, reconcile the stock listing to the ledger and keep the count sheets signed by the person who counted. Unexplained differences are easier to resolve in the month they arise than twelve months later.
A quarterly review you can do in an afternoon
A quarterly check helps you catch classification errors while the facts are still fresh. It also gives you a short trail of evidence at renewal or year-end.
- Tag every invoice issued as qualifying, non-qualifying or mainland-related.
- Total each category and compare it with the previous quarter.
- Check that new customers have a signed contract on file.
- Confirm that payroll, rent and utilities are being paid from the company account.
- Note any change to activities, and confirm the current requirement with the authority.
Common gaps in AFZ company accounts
Authority rules for AFZ
Ajman Free Zone sets its own licence renewal and reporting requirements, so confirm what your authority asks for and keep records aligned with it.
Qualifying Free Zone Person status
Companies aiming for the 0% corporate tax rate on qualifying income must meet set conditions, including audited financial statements and adequate substance.
Qualifying and non-qualifying income
Revenue must be split by type, because income outside the qualifying list is taxed at 9%.
Dealings with mainland customers
Sales to mainland clients can change the tax treatment, so contracts and invoices need to show who the customer is and what was supplied.
Our preparation process
Check status
We review your AFZ licence type and the tax position you are aiming for. We start with how trading and light industrial companies usually earn their income.
Tidy the ledger
We reconcile accounts and tag each AFZ revenue line to the right income category.
Prepare the file
We assemble the schedules, contracts and substance evidence a reviewer of a AFZ company will ask for.
Plan the year
We set monthly routines suited to trading and light industrial companies, so the next year-end is easier.
Our scope, stated plainly
Numerix Accountants holds licence No. 1360308 for accounting and bookkeeping, tax consulting and cost control and risk management. Statutory audit and audit opinions sit outside that licence.
What owners usually ask
Does AFZ require audited accounts?
Many free zone authorities ask for annual audited financial statements, and the corporate tax rules require them for Qualifying Free Zone Persons. Please confirm the current requirement with your authority.
Can Numerix audit my company?
No. Audit is outside our licence. We prepare the books and controls so any audit goes smoothly.
Do you work with trading and light industrial companies?
Yes. Yes, we shape the records around how trading and light industrial companies earn and spend.
What if my Ajman Free Zone company only has a flexi-desk?
You can still keep complete books. Make sure staff, supplier and customer records show how the business operates, and confirm with the authority what it expects of your licence type.
How do I record freight on imported goods?
Add freight, insurance and clearing charges to the cost of the goods they relate to. Stock is then valued at landed cost and margins are not overstated.
Should I tag income by customer location?
Yes. Recording whether each customer is in the free zone, on the mainland or overseas gives you the information needed to analyse income by type later.
How long do I keep my records?
Tax records must be kept for at least five years, so retain contracts, invoices and bank statements for at least that long.
Get your records in order
Send us a few details about your ajman free zone setup and your next deadline. We will reply with a clear plan.
Contact NumerixCall +971 50 771 2258 WhatsApp us Email us Numerix Accountants does not issue audit opinions or perform statutory audits, which are outside our licence.
Talk to Numerix Accountants
Call, message or email us to talk through your requirements. The first assessment call is free of charge.