Audit and Assurance

Importance of Audit in MASDAR City

January 23, 2020 Comments Off on Importance of Audit in MASDAR City

When we talk about setting up a business in the United Arab Emirates, two places pop into our minds. These are Dubai and Abu Dhabi. Dubai it the recipient of most of the hype and is one of the biggest city in the world, but Abu Dhabi is the underdog in the business setup aspects. Abu Dhabi is a mixture of business, culture, and entertainment. This emirate not only provides a suitable environment for business but also provides places for leisure and recreation, making it a site ideal for families.

Abu Dhabi also comprises of many free zones which allow companies to set up their business and grow in the emirate. The various benefits available to a company by incorporating itself in the free zone ensure that the company achieves great success and growth. One of the free zones which the emirate of Abu Dhabi comprise is the Masdar City.

Let’s learn more about this free zone.

Masdar City

Masdar City is situated only 17 kilometers from the emirate of Abu Dhabi and has access to the Abu Dhabi International Airport. The main idea was to market this city as the ‘City of the Future.’ This city was designed as a hub for technology companies which are into the clean energy sector. Clean energy sector means that the companies which take into consideration the ecological environment and uses the least amount of non-renewable resources possible.

Masdar City comprises of a robust logistics network as it is situated close by to the Abu Dhabi International Airport. The city also is very strategically located as it is only 20 minutes away from downtown Abu Dhabi whereas it is only a 40-minute drive away from Dubai.

The Masdar Free Zone, which is in the Masdar city is known the world over for its mixture of sustainability and urban development. This free zone provides a home to a diverse collection of companies consisting of Multinational Companies, Small and Medium Enterprises, and upcoming Start-ups. The various benefits that the Masdar Fee Zone provides to the companies make it a perfect place to start and expand your business. Some of the benefits that a company can avail in this free zone are:

  • Green and Clean Business Environment
  • Quick Company Setup
  • One-stop shop for all required Licenses and Permits
  • 100% foreign ownership allowed
  • No tariffs on the import of goods
  • Repatriation of Capital and Profits
  • Cost-effectiveness
  • The strategic location of the Masdar City

The benefits as mentioned above are the reason due to which many of the significant Fortune 500 companies have their offices in the free zone. Some of the major tenants include:

  • International Renewable Energy Agency (IRENA) (headquarters)
  • Siemens (Middle East headquarters)
  • Emirates Nuclear Energy Corporation (ENEC)
  • Schneider Electric
  • Saint-Gobain
  • Khalifa University of Science and Technology

Need for Audit in Masdar City

We all know the importance of conducting an audit in a company. An audit will not only streamline the various processes of a company, but it will also provide data to both the management and the stakeholders of the company. Using this data, the administration will be better able to make decisions regarding the future of the company. This data will also help the present stakeholders and the potential investors in deciding if the money which they are investing in the company are being utilized properly.

One more thing that the auditing of the companies in the free zone will accomplish is that after the auditing of the company, the auditor will prepare an audit report which will be available to everyone. This transparency of the financial information of the company will make sure that the present and the potential investors have all the information that will allow them to make informed decisions.

The Masdar City has its local governing authority which makes rules and regulations considering the various needs and requirements of a company which is incorporated in the free zone. It has been mandated by the Government of the Country that all the companies that have been registered in the free zone have to perform an annual audit. Only the accounting and auditing firms which have been approved by the Masdar City can provide auditing and accounting services in the free zone. There have also been specific recent changes in the regulations relating to the accounting and audit of the companies which will simplify the audit process.

Looking Approved auditors in Masdar Free Zone? Look no further as JAXA Chartered Accountants can help you in this matter. Jaxa provides many services which will allow your company to achieve success and will take care of all the auditing problems of your company. To know all about the various services provided by JAXA do contact us, we will be happy to help.