Getting an Audit Licence in the UAE: Requirements and Business Setup

 

The UAE continues to establish itself as a regional and global business hub. With the introduction of corporate tax and increasing regulatory compliance standards, the demand for qualified, licensed auditors has surged.

Whether you’re a UAE national or a foreign professional, becoming a licensed auditor in the UAE opens the door to lucrative career and business opportunities.

In this post, we’ll take you through everything you need to know about obtaining an audit licence in the UAE and going for your own company formation in the UAE, from meeting educational requirements to setting up a compliant, fully licensed practice.

Overview of Audit Licencing in the UAE

- Introduction

Audit licences in the UAE are issued and regulated by the Ministry of Economy (MoE), ensuring that only qualified professionals can offer auditing services. To practice as an auditor or open an audit firm, individuals must meet specific education, experience, and examination standards.

Both local and international applicants can apply, provided they comply with UAE’s regulatory and ethical auditing frameworks.

- Education, Experience & Certification Requirements

To apply for an audit licence in the UAE, candidates must meet the following criteria:

1. Educational Qualifications:

• A bachelor’s degree in accounting, finance, or a related discipline from a recognised institution is required.
• Non-accounting graduates must complete at least 15 credit hours in accounting from accredited programs.
• A master’s degree in accounting or finance is advantageous but not mandatory.

2. Professional Experience:

• A minimum of five years of post-degree experience in auditing is required.
• For expatriates, UAE-specific experience requirements depend on total international experience:
• 10+ years abroad = 1 year of UAE experience
• 5–10 years abroad = 2 years of UAE experience
• 2–5 years abroad = 3 years of UAE experience

3. Recognised Professional Certifications:

• Credentials such as ACCA (UK), ICAEW, CPA (USA, Canada, Australia), and SOCPA (Saudi Arabia) may grant exemptions from certain exams (e.g., IFRS and ISA).
• All candidates, regardless of certification, must pass the UAE Laws & Taxation exam.

- The UAE Fellowship Programme & Exam Details

Before applying for an audit licence, professionals must obtain a UAE Fellowship Certificate, administered by the Emirates Association of Accountants & Auditors (EAAA) in collaboration with the MoE and ACCA.

1. Steps to Obtain the Fellowship Certificate:

a) Register with EAAA 
Create a membership account with the Emirates Association of Accountants & Auditors.

b)Verify Education and Experience 
Submit relevant documents showing compliance with education and work history requirements.

c) Pass the Required Exams

• International Financial Reporting Standards (IFRS)
• International Standards on Auditing (ISA)
• UAE Laws & Taxation

Note: Exemptions may apply for IFRS and ISA if you hold qualifying certifications.

d) Complete Continuing Professional Education (CPE) 
At least 30 hours annually, with 12 hours in core subjects like accounting, auditing, and UAE tax law.

e) Apply for Fellowship Certificate 
Once all criteria are met, submit your application to receive your official certificate.

2. Exam Format:

• Each exam includes 70 multiple-choice questions.
• A passing score is 60%.
• Exams are conducted online by the ACCA and proctored at British Council centres across the UAE.
• All exams must be completed within two years of passing the first.

- Applying for Your Individual Audit Licence

Once you’ve secured the UAE Fellowship Certificate, you can apply for an individual audit licence with the Ministry of Economy.

#Requirements:

• Professional Indemnity Insurance: AED 500,000 minimum coverage.
• Application Fee: AED 100
• Three-Year Licence Fee: AED 4,500

Submit your documents, pay the fees, and upon approval, you’ll receive your licence to practice auditing professionally in the UAE.

- Starting Your Own Audit Firm in the UAE

If you’re looking to create an independent practice through business setup in the UAE, here’s how to start an audit firm in the UAE.

#Step-by-Step Setup Process:

1. Select a Business Name 
   Ensure it aligns with UAE naming conventions and is available for registration.
2. Form a Partnership 
   Your firm must include at least two partners, one of whom must be a UAE national with a 25% stake. All partners must have five years of audit experience.
3. Verify Partner Licences 
   Each partner must hold a valid MoE-issued individual auditor licence.
4. Establish a Risk Management Framework 
   Demonstrate that your firm operates within accepted regulatory and ethical standards.
5. Provide International Experience (if applicable) 
   Foreign firms must show a minimum of five years of licenced practice in their country of origin.
6. Secure an Office Location 
   Set up a compliant and functional office space.
7. Open a Corporate Bank Account 
   Choose a UAE-based bank for business transactions and operations.
8. Obtain Insurance 
   Professional indemnity insurance of at least AED 1,000,000 is required.
9. Register with the MoE 
   Submit all business and personal documents and pay:

• Application Fee: AED 100
• Three-Year Firm Licence Fee: AED 10,500

- Renewing Your Audit Licence

1) Renewal Schedule:

Audit licences must be renewed every three years. This involves a review of compliance, updated documentation, and proof of CPD (Continuing Professional Development) hours.

2) CPD Requirements:

• Minimum of 30 CPD hours annually
• Audit firms must maintain records of each auditor’s CPD compliance.

3) Compliance and Ethics:

Auditors must adhere to ethical principles like integrity, objectivity, and independence. Violations can result in:

• Monetary fines
• Licence suspension or revocation
• Legal action or imprisonment

- UAE Corporate Tax: Audit Obligations

Since June 1, 2023, the UAE has implemented a corporate tax regime, requiring businesses with annual revenues over AED 50 million to submit audited financial statements by MoE-licensed auditors.

Additionally, Qualifying Free Zone Entities must provide audited financials to retain eligibility for the 0% tax rate. More information can be found at the Federal Tax Authority (FTA) website.

Building a Career in Auditing

Obtaining an audit licence in the UAE is more than a legal formality; it’s a professional milestone. Whether you aim to practice individually or establish a firm, your journey involves rigorous qualifications, ethical practice, and commitment to continued learning.

At Nimbus Consultancy, we specialise in helping professionals and businesses navigate UAE licensing requirements and ongoing compliance. From company formation in the UAE to visa processing and PRO services, we’re here to simplify your journey.