Accounting Services

As per the section 98 of the BVI Business Companies Act 2004, every BVI Business Company has the obligation to maintain records that:

• Are sufficient to show and explain the company’s transactions
• Enable the financial position of the company to be determined with reasonable accuracy

Recent update of the record-keeping rules requires the companies to maintain “underlying documentation”   in addition to the above records. Under Section 98(7) of recently amended BCA the “underlying documentation “is defined as maintaining accounts and records (such as invoices, contracts and similar documents) in relation to:

• All sums of money received and expended by the company and the matters in respect of which the receipt and expenditure takes place
• All sales and purchases of goods by the company; and
• The assets and liabilities of the company.

Although there is no requirement to produce or file audited financials for BVI companies, the breach of the above record keeping requirement is liable to a fine of USD 50,000.

The Ras Al Khaimah International Corporate Centre Business Companies regulations 2016 states that

• The company shall keep records that are sufficient to show and explain the company’s transactions and that will, at any time, enable the financial position of the company to be determined with reasonable accuracy.
• The company may by Resolution of Shareholders call for the directors to prepare profit and balance sheet periodically and also may appoint auditors to examine the accounts.

The audited financials does not need to be filed with the authorities, however, the authorities reserve the right to demand for the financials and it’s supporting at any point of time. Hence, it is always advisable to maintain up-to-date records of your company accounts.

The Jebel Ali Free Zone Authority – Offshore companies Regulations 2003 states that every company shall keep accounting records, which are sufficient to show and explain its transactions, and are such as to-

• Disclose with reasonable accuracy, at any time, the financial position of the offshore company at that time;
• Enable the directors to ensure that any accounts prepared by the offshore company under this part comply with the requirements of these regulations.

Along with the requirement of the retention of records, the directors of every company shall prepare accounts for the company in accordance with generally accepted accounting principles. Failure to comply with this regulation is considered an offence. The financial records are not required to be filed publicly so far.

The Dubai Multi Commodities Centre Authority regulations 2003 require companies to produce audited financials and submit them on a yearly basis. Once a company is registered, it is immediately required to submit an auditor appointment letter from an auditor licensed by the UAE Ministry of Economy. Sovereign can assist you with arrangement of audit appointment letter as well as with the yearend audit.

Dubai World Central regulations require companies to produce audited financials and submit them on a yearly basis. It is usually requested at the time of the renewal.