Running a business in the Abu Dhabi Global Market (ADGM) offers exciting opportunities. But with those opportunities come responsibilities, including filing your annual accounts with the ADGM Registration Authority. Failure to comply with these requirements can lead to hefty penalties. So, it is important to comply on time to avoid the penalties.

Let’s break down the key points of these filings for your better understanding.

Who needs to file ADGM Annual Accounts? Not everyone…

While most ADGM entities are required to file annual accounts, some are exempt. Here’s a quick breakdown:

• Must File: Companies (both private and public) and Limited Liability Partnerships (LLPs).
• Exempt: Branches of foreign companies, Foundations, and entities registered under the Regulatory Laboratory regime.

What to file ADGM Annual Accounts? Depends on your company…

The type of accounts you need to submit depends on the size and activities of your business:

• Standard Filing (Most Companies):
  • Audited accounts prepared by an ADGM-approved auditor.
  • A Director’s Report outlining your company’s performance for the year.
  • A Board Resolution formally approving the annual accounts before submission.
• Simplified Filing (Small Companies):
  • Companies with a turnover below USD 13.5 million and less than 35 employees can file a simpler version with just an unaudited balance sheet.

Formal requirements to file ADGM Annual Accounts

There are specific formatting and content requirements to ensure clarity and compliance:

• Currency: All accounts must be denominated in US Dollars (USD).
• Signatures: The balance sheet needs to be signed by a director with their name clearly stated. For audited accounts, the Director’s Report requires a signature from a director or the company secretary, along with their name.
• Auditor’s Report (if applicable): This report must mention the audit firm and the senior auditor responsible for the review.

Filing Deadlines: Meeting the Requirements on Time

The deadlines for filing your annual accounts depend on your company’s Accounting Reference Date (ARD), which is set during incorporation and can be viewed on the ADGM online registry. Here’s a breakdown:

• First Annual Accounts:
  • For a financial year of 12 months or less, file within 9 months of your ARD.
  • For a financial year exceeding 12 months, file within 9 months of the first anniversary of your incorporation.
• Subsequent Annual Accounts: File within 9 months of your ARD each year (reduced to 6 months for public companies).

Need Flexibility? Changing ARD or Extensions

• Changing ARD: If eligible, you can request a change to your ARD through the online registry, along with a supporting resolution from your board of directors.
• Filing Extension: In exceptional circumstances, you can apply for an extension before the filing deadline. However, it’s best to plan ahead and avoid last-minute applications.

Filing electronically: A streamlined process

Thankfully, filing your annual accounts is a digital process handled through the ADGM online registry solution:

1. Access your company’s account on the online registry.
2. Click on “Maintain Company” and then select “Lodge Annual Accounts” from the drop-down menu.
3. Follow the on-screen instructions and upload your prepared accounts and any supporting documents.
4. You’ll receive an acknowledgment email confirming your submission.
5. The Registration Authority may review your accounts for accuracy. If revisions are needed, they’ll contact you.
6. Upon approval, you’ll be notified via the online registry system.

Ensuring accuracy and avoiding penalties: Tips for success

Filing your annual accounts accurately and on time is crucial. Here are some helpful tips:

• Understand the Requirements: Familiarize yourself with the specific filing obligations before you begin the process.
• Prepare Necessary Documents: Gather all financial statements, including the balance sheet, profit or loss statement, and cash flow statement (if applicable).
• Accuracy is Key: Double-check all figures and information before submitting your accounts. Errors can lead to delays or penalties.
• Time Management is Crucial: Be mindful of the filing deadlines (9 months for private companies, 6 months for public companies) to avoid late filing fees.
• Maintain Good Records: Keep accurate and up-to-date financial records throughout the year. This makes preparing your annual accounts a smoother process.
• Seek Professional Help: If navigating the filing process seems daunting, consider consulting a qualified accountant or business advisor for assistance.

ADGM Annual Accounts filings made easy with MS

MS can help your business in Abu Dhabi Global Market (ADGM) ensure compliant and timely annual account submissions. We offer professional guidance based on your company’s specific requirements, prepare and submit your financial statements, and keep you informed of any regulatory changes. Additionally, we provide timely reminders and ensure submissions are filed on time.