ADGM ANNUAL ACCOUNTS
Introduction:
Every ADGM (Abu Dhabi Global Market) Company and Limited Liability Partnership (LLP) is required to file annual accounts with the ADGM Registration Authority. These accounts reflect the financial performance of the company or LLP over the course of the financial year. However, certain types of entities, such as branches and Foundations, are exempt from the annual filing requirement. In this article, we will provide an overview of the types of accounts that need to be filed, formal requirements to be followed, deadlines for filing, and the process of submitting annual accounts through the ADGM online registry solution.
Types of Accounts to File:
The specific type of accounts you need to file depends on the type and size of your company or LLP, as well as the activities it conducts. Generally, the following must be filed:
• Audited annual accounts: These accounts must be audited by an ADGM Recognised Auditor. Along with the audited accounts, you must include the Auditor’s Report.
• Director’s Report: This report provides an overview of the company or LLP’s performance during the financial year. It should include relevant information about the financial position, results, and activities of the entity.
• Board resolution approving the accounts: A board resolution must be passed to approve the annual accounts before they are filed.
Simplified Accounts for Small Companies:
If your company or LLP qualifies as a “small” entity under the small company’s regime, you may file a simplified version of the accounts. This includes an unaudited balance sheet. To qualify as a small entity, your turnover should not exceed USD 13.5 million, and you should have no more than 35 employees. Public interest entities and financial services firms are not eligible for filing simplified accounts.
Formal Requirements:
When preparing annual accounts, several formal legal requirements must be followed, including:
• Denomination in U.S. Dollars (USD): All annual accounts must be expressed in U.S. Dollars.
• Signatures: Balance sheets must be signed by a director, and the name of the director must be stated. For audited accounts, the director’s report must be signed by a director or the company secretary, and the name of that person must be stated.
• Auditor’s Report: For audited accounts, the auditor’s report must state the name of the audit firm and the name of the person who signed it as the senior auditor.
Filing Deadlines:
The filing deadlines for annual accounts are calculated based on the company or LLP’s Accounting Reference Date (ARD). The ARD is set at the time of incorporation and can be viewed on the ADGM online registry system. The deadlines are as follows:
• First annual accounts: For new private companies or LLPs filing their first annual accounts, the deadline depends on whether they have a short or long first financial year. If the financial year is 12 months or less, the first set of annual accounts must be filed within nine (9) months of the ARD. If the financial year is more than 12 months, the accounts must be filed within nine months of the first anniversary of incorporation.
• Subsequent annual accounts: For existing private companies or LLPs filing their second or subsequent annual accounts, the accounts must be filed within nine (9) months of the ARD.
Note: Public companies have a filing period of six (6) months instead of nine.
Changing the ARD:
If eligible, a company or LLP can request a change in the ARD by notifying the Registration Authority through the ADGM online registry solution. A directors’ resolution supporting the change must be submitted.
Account Filing Extension:
In exceptional cases, the Registrar may approve an application to extend the deadline for filing accounts. Applications must be submitted prior to the filing due date.
How to File Annual Accounts:
All annual accounts must be filed via the ADGM online registry solution. Follow these steps:
• Access your firm’s account on the ADGM online registry solution.
• Click on the “Maintain Company” button from the top menu bar.
• From the drop-down menu, select “Lodge Annual Accounts.”
• Follow the instructions provided and upload a copy of the annual accounts and any supporting documents.
• Once submitted, you will receive an automatic acknowledgment via email.
• The Registration Authority may review your annual accounts before acceptance. If revisions are required, they will be returned to you for amendment.
• Upon acceptance, you will be notified immediately through the online registry solution.
Conclusion:
Filing annual accounts is a crucial requirement for ADGM companies and LLPs. By understanding the specific types of accounts to file, meeting formal requirements, adhering to filing deadlines, and using the ADGM online registry solution, entities can ensure compliance with the ADGM Registration Authority’s regulations. Be sure to consult the official ADGM guidelines and seek professional assistance when necessary to facilitate a smooth and accurate filing process.
How MS can help you:
We have a solid team who is well-experienced in assisting with Annual accounts Filing. Want to stay compliant and avoid regulatory fines? We are here to help you!
