Accounting is important to every company because it helps them track the standing of their business in terms of income and expenditures. It also helps companies to ensure their statutory compliance and provide investors, management, and government with a precise quantitative financial report to help support making business decisions.
Financial statements of companies should include the following:
1. Income statement providing the information about profit and loss
2. A balance sheet with a clear indication and picture of the financial position of the company on a particular date
3. Cash flow statement reporting the cash generated and spent during a specific period of time.
Companies established in the UAE must provide an annual activity report that is audited by an auditor to the Ministry of Finance (for trading companies) or to the Ministry of Industry (for industrial companies.) This requirement will serve as the company's primary document for the renewal of the company's license.
In general, companies incorporated in the UAE should maintain and keep their book of accounts for a minimum period of five (5) years.
Bookkeeping is an act of keeping track of all financial transactions and post debits and credits. It is an activity of recording the financial transactions of the company and is essential to the business's accounting process.
By freezing your license, you still have the intention of keeping it and reactivating it after three years at most. You must only pay a fee.
Yes, you will need to seek a NOC from your utility companies and other government departments to initiate company liquidation.
If the parent company is liquidated, the branch will be dissolved as well.
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