Hamriyah Free Zone Authority Business services
Audit and liquidation services in the UAE, particularly for businesses in the Hamriyah Free Zone Authority (HFZA), are crucial for following the rules and maintaining financial honesty. These services help ensure businesses are ethical, transparent, and in compliance with the law. Audits guarantee financial integrity, and liquidation assistance ensures a smooth and orderly proceeding when needed, protecting the interests of businesses and stakeholders. In essence, HFZA audit and liquidation services are vital for fostering ethical and lawful business practices in the UAE.
Hamriyah Free Zone Authority (HFZA)
Hamriyah Free Zone Authority (HFZA) is a commercial hub for production corporations operating in the United Arab Emirates (UAE). Established in 1995 by Emiri Decree, HFZA is located in the Emirate of Sharjah, UAE, and offers economically viable incorporation services, including modern infrastructure, logistics, investor connectivity, and critical operations support for its investors. It is the second-largest industrial free zone in the UAE. HFZA offers investors the opportunity to open a company in one of the six diverse sectors, including Industrial Manufacturing Park, Global Logistics Park, Oil & Gas Accelerator Hub, Maritime Industry, Food Park, and Steel City.
Freezones Regulated by HFZA
Auditing Services by Approved Auditors in HFZA
Hamriyah Free Zone Authority (HFZA) requires all companies operating within the free zone to appoint an independent auditor from the list of approved auditors to report to the shareholders on the financial and operational aspects of the business and state whether the financial statements give a true and fair view and are prepared in accordance with the applicable laws and regulations. The auditing services provided by the approved auditors in HFZA include, but are not limited to, the following:
- External Audit: External audit services involve the independent examination of a company’s financial statements, ensuring their accuracy and fairness. External auditors in HFZA assess the financial records and provide an unbiased opinion on the company’s financial health, which is vital for stakeholders, investors, and regulatory authorities.
- Due Diligence Audit: Due diligence audits are conducted when a business is involved in mergers, acquisitions, or significant investments. Approved auditors in HFZA perform thorough due diligence to evaluate the target company’s financial, legal, and operational aspects. This helps potential investors or buyers make informed decisions about the deal, assessing risks and opportunities.
- Internal Audit: Internal audit services focus on evaluating a company’s internal controls, risk management processes, and operational efficiency. Internal auditors in HFZA work closely with management to identify areas for improvement, ensuring that internal processes align with the organization’s objectives. This proactive approach helps prevent fraud, optimize operations, and enhance overall organizational performance.
- Operational Audit: Operational audits concentrate on assessing specific operational areas within a company. Auditors in HFZA analyze processes, policies, and procedures to identify inefficiencies and areas of improvement. By conducting operational audits, businesses can streamline their operations, reduce costs, and enhance productivity, leading to improved profitability.
- Forensic Audit Services: Forensic audits are specialized examinations conducted to detect and investigate financial irregularities or fraud within an organization. Approved auditors in HFZA with expertise in forensic accounting use advanced techniques to uncover fraudulent activities, gather evidence, and quantify financial losses. These services are invaluable in legal proceedings and help companies take appropriate action against perpetrators.
- Fraud Investigation: Fraud investigation services involve in-depth inquiries into suspected fraudulent activities. Auditors in HFZA skilled in fraud investigation employ various methodologies, including data analysis and interviews, to uncover fraudulent schemes. They work closely with businesses to gather evidence, identify the culprits, and support legal actions if necessary, safeguarding the organization’s financial interests and reputation.
Company Liquidation Services in Hamriyah Free Zone
DDA oversees the liquidation processes of companies registered within its jurisdiction. Liquidation services involve a systematic winding up of the company’s operations and distribution of assets. DDA’s liquidation services encompass various stages, including:
- Supervised Winding-Up: All trading and business operations of the Free Zone Company (FZC) cease, and the affairs of the company are wound up under the supervision of a licensed accountant in the Emirate of Sharjah, serving as the liquidator. This supervision ensures a timely and organized winding-up process that takes into account all assets, creditor claims, and employee entitlements.
- Claims Settlement: The liquidator oversees the settlement of all claims, debts, liabilities, and obligations of the Free Zone Company. This includes ensuring payment to creditors and employees, following the regulations.
- Surplus Asset Distribution: Any surplus assets of the Free Zone Company, after settling all obligations, are distributed among the shareholders as per their entitlements. The liquidator ensures a fair and equitable distribution, adhering to the company’s regulations and legal requirements.
- Preparation of Statement of Account: The liquidator prepares a detailed statement of account, documenting all actions and transactions undertaken during the liquidation process.
- Submission of Report: The liquidator ensures that a copy of the prepared report is delivered to the FZC Unit within 7 days of its completion. This report provides a comprehensive overview of the liquidation proceedings.
- Record Keeping: Details from the report are promptly entered into the FZC Register, maintaining a transparent record of the liquidation process for regulatory purposes.
Farahat & Co. provides essential audit and liquidation services for businesses registered in HFZA, ensuring compliance with regulations and ethical financial practices. With a focus on integrity and efficiency, they facilitate smooth audits and liquidation processes, safeguarding the interests of HFZA registered companies and upholding high standards of financial accountability. Contact us today to benefit from our expertise in HFZA compliance. Feel free to reach out anytime.
We’re here to help with HFZA compliance or any related concerns you might have.