In a move that underscores its commitment to financial transparency and regulatory integrity, the International Free Zone Authority (IFZA) has announced a new requirement mandating the submission of audited financial statements for all trade license renewals starting from 2025.
Under IFZA’s 2025 License Renewal Guidelines, every trade firm must now submit its financial accounts based on the most recently concluded financial year at the time of renewal. This policy aligns IFZA with the UAE Ministry of Finance’s broader framework for enhanced financial governance, particularly under the Corporate Tax Law (Federal Decree-Law No. 47 of 2022.
What’s Changing
Starting with the 2025 renewal cycle, all IFZA-registered entities are required to:
Submit audited or reviewed financial statements during trade license renewal.
Ensure that financial statements reflect the latest financial year’s performance.
Prepare and submit reports within three months of the financial year’s end.
Failure to comply with these requirements may result in delays in license renewal, penalties, or even regulatory non-compliance — potentially impacting banking operations, visa sponsorships, and overall business standing.
Why It Matters
This development reflects the UAE’s ongoing efforts to strengthen its financial transparency, AML/CFT compliance, and alignment with OECD standards. For businesses, this is more than a procedural formality — it’s a strategic step toward improving corporate governance, investor confidence, and long-term sustainability in one of the region’s fastest-growing business hubs.
What You Should Do Now
Prepare early — Begin finalizing your 2024 financials and initiate your audit process ahead of deadlines.
Engage professionals — Work with a registered audit firm experienced in IFZA and UAE Free Zone compliance.
Adopt IFRS standards — Ensure your accounting records are IFRS-compliant for smoother approvals and renewals.
Stay Compliant with Confidence
At NEX CONSULTANTS, we simplify compliance for IFZA-registered companies — from preparing IFRS-compliant financial statements to managing a seamless license renewal process. Our team ensures your business stays ahead of regulatory requirements while you stay focused on growth. Get in touch with us today to discuss your audit and compliance needs for IFZA renewal 2025.
