21 10 2020

Business administration in the United Arab Emirates

Business administration in the United Arab Emirates

People who decide to open a business in the United Arab Emirates need not only to think about the issues of production, marketing and logistics, but also about the issues of accurate accounting of all processes in the company. In business administration processes the most important component can be distinguished. This is accounting, which will be 100% consistent with the legislation of the United Arab Emirates. Bookkeeping includes reports submitted each year to the relevant authorities, a purchase diary, ledgers, tax invoices, value added tax reports.

All generated reports must be kept at the head office for at least 5 years. The essence and purpose of all these reports is to make all financial transactions carried out in the company transparent and understandable.

Further, only digital copies are allowed.

It is imperative to become familiar with the various nuances. If the capital asset statements relate to furniture and cars, then the shelf life is at least 10 years. Regarding real estate accounting, then here the minimum period is 15 years. If your company operates in a free economic zone, for example, in Dubai, then be sure to clarify additional requirements for the administration of processes.

We recommend scrupulous attention to the formation of invoices. For companies in the United Arab Emirates, rules have been introduced and specified the mandatory inclusion of certain details in the invoice.

These details include:

- Recipient data (name, address, tax number);

- Date of delivery or issue;

- Unique document number;

- Scope of delivery and price per unit;

- Tax rate and tax amount in dirhams;

- The gross value required to be paid in AED.

To simplify all processes and save time, it is better to use accounting or administrative software.

Here is a list of the most popular programs: "Tally", "SAP", "Reachaccountant", "Quickbooks", "Sage".

To generate invoices, the following are suitable: "TaxPay" and "SmartInvoice".