Starting a Bookkeeping and Accounting Business in the UAE
With its booming economy and diverse range of industries, the demand for skilled professionals in bookkeeping and accounting roles continues to grow in the UAE. These positions are vital for maintaining accurate financial records, ensuring compliance with regulations, and providing insights that drive informed business decisions.
Bookkeepers and accountants are tasked with managing financial transactions, recording income and expenses, preparing financial statements, and analyzing financial data to help businesses optimize their performance.
Bookkeeping and accounting businesses tend to be successful in the UAE for several reasons:
- Regulatory Environment: All businesses operating in the UAE must maintain accurate financial records and submit annual audits, creating a high demand for bookkeeping and accounting services.
- Growing Economy: As the economy grows, so does the complexity of financial transactions, leading to an increased demand for professional accounting services.
- Business Diversity: The UAE is home to a diverse range of businesses, including multinational corporations, small and medium enterprises (SMEs), startups, and family-owned businesses. Each of these entities requires different levels of accounting support, creating a broad market for accounting services.
- Tax-Friendly Environment: While the UAE has introduced value-added tax (VAT) in recent years, it still maintains a tax-friendly environment compared to many other countries. Navigating tax compliance requirements can be complex, leading businesses to seek professional accounting assistance.
- International Business Hub: Many multinational corporations choose to establish regional headquarters or branches in the UAE, increasing the demand for accounting services that understand both local regulations and international accounting standards.
- Government Initiatives: The UAE government has launched various initiatives to support entrepreneurship and business development, which has led to an increase in the number of startups and SMEs. These businesses often require outsourced accounting services to manage their finances efficiently.
If you want to start your business in the bookkeeping and accounting sector, we provide you with a guide on the business activities you are supposed to have under your business license.
The business activity that falls under Bookkeeping and Accounting activities is:
7020.03 – Design of accounting methods or procedures, cost accounting programs, budgetary control procedures
This activity involves developing and implementing accounting systems tailored to the specific needs of a company. It includes designing processes for recording financial transactions, preparing financial statements, and ensuring compliance with relevant accounting standards.
Individuals who seek this type of business activity also work in tracking and analyzing the costs associated with producing goods or services. Developing cost accounting programs entails creating systems to allocate costs to products, departments, or activities accurately. These programs help businesses understand their cost structure better and make informed decisions to improve efficiency and profitability.
Budgetary control involves setting financial targets and comparing actual performance against these targets. Developing budgetary control procedures entails designing processes to create budgets, monitor actual performance, and take corrective actions as necessary. Effective budgetary control helps organizations manage resources efficiently and achieve their financial goals.
Other requirements:
- Third-party approval: No third-party approvals are required for this business activity.
- Filing of Economic Substance Return: This business activity is exempt from this requirement.
- Anti-money laundering compliance: This business activity is exempt from this requirement.
6920.00 Accounting and Bookkeeping Activities
Accounting and bookkeeping activities involve recording, classifying, and summarizing financial transactions to provide accurate financial information for decision-making. Accountants and bookkeepers maintain financial records, including ledgers, journals, and accounts payable/receivable. They track expenses, revenues, and assets, ensuring compliance with accounting principles and regulations. These professionals prepare financial statements, such as balance sheets and income statements, to assess an organization’s financial health. Additionally, they analyze financial data, offer financial advice, and assist with budgeting and tax preparation.
Other requirements:
Third-party approval: No third-party approvals are required for this business activity.
Filing of Economic Substance Return: This business activity is exempt from this requirement.
Anti-money laundering compliance: This business activity is exempt from this requirement.
6920.01 Recording of commercial transactions from businesses or others
Recording commercial transactions involves documenting financial activities such as sales, purchases, and expenses from businesses or individuals. This process captures transaction details like dates, amounts, and descriptions in ledgers or accounting software. These records serve as the foundation for financial reporting, enabling businesses to track cash flow, monitor profitability, and comply with tax regulations.
Other requirements:
Third-party approval: No third-party approvals are required for this business activity.
Filing of Economic Substance Return: This business activity is exempt from this requirement.
Anti-money laundering compliance: This business activity is exempt from this requirement.
6920.02 Preparation or auditing of financial accounts
Preparation or auditing of financial accounts involves compiling, examining, and verifying financial records to ensure accuracy, transparency, and compliance with accounting standards and regulations. Accountants or auditors review transactions, reconcile accounts, and analyze financial statements for errors or discrepancies. They assess internal controls, identify risks, and provide recommendations to improve financial processes.
Other requirements:
Third-party approval: No third-party approvals are required for this business activity.
Filing of Economic Substance Return: This business activity is exempt from this requirement.
Anti-money laundering compliance: This business activity is exempt from this requirement.
6920.04 Preparation of personal and business income tax returns
Preparation of personal and business income tax returns involves compiling, analyzing, and accurately completing tax forms to report income, deductions, and credits to tax authorities. Tax professionals or accountants work closely with individuals or businesses to ensure compliance with tax laws, regulations, and deadlines. They identify applicable deductions and credits to minimize tax liabilities while maximizing refunds or minimizing payments. Additionally, tax preparers offer tax planning advice, helping clients optimize their financial positions and reduce tax burdens legally.
Other requirements:
Third-party approval: No third-party approvals are required for this business activity.
Filing of Economic Substance Return: This business activity is exempt from this requirement.
Anti-money laundering compliance: This business activity is exempt from this requirement.
Did you find what you were looking for? Explore the other guides in our Activity Hub for exploring unique business ideas in Dubai and navigate the essentials of business setup with ease.
You can also calculate your business setup costs easily using our handy cost calculator and choose from our customized company setup packages to find your perfect fit.
Get your business license in the UAE today and explore a world of opportunities waiting for you.
Start Your Future Here
By submitting this form, you agree to the Terms and Privacy Policy of SPCFZ. I consent to SPCFZ collecting my details and contacting me either by email, phone or whatsapp
Similar Read
