Up to Dhs30,000 fine if firms fail to keep accounting records

DUBAI: Cabinet resolution no.78 for 2022 relating to the list of administrative penalties for acts commited in violation of federal law no. 32 for 2021 on trading companies, has requested companies and establishments operating in the UAE to keep accounting records.

The resolution indicated that failing to keep accounting records renders companies liable to a fine of Dhs30,000. The administrative penalties indicated that partnerships and limited partnerships, which fail to keep accounting records to clarify their transactions, will be slapped with a fine of Dhs10,000.

Limited liability companies will be slapped with a fine of Dhs15,000 if they fail to keep accounting records to clarify their transactions, while private joint-stock companies that do not commit to keeping accounting records to clarify their transactions will be slapped with a fine of up to Dhs20,000.

There solution revealed that a fine ofdhs 30,000 will be imposed on public joint-stock companies if they do not commit to keeping accounting records to clarify their transactions.

In June this year, the Ministry of Economy held a media briefing on the updated implementing regulation of Federal Law No (12) of 2014 regarding Reorganization of Accounts Auditors Profession, pursuant to Cabinet Decision No. (48) of 2022.

During the briefing, Abdulaziz Al Nuaimi, Assistant Undersecretary for Commercial Affairs at the Ministry of Economy, confirmed that, thanks to the guidance of the wise leadership, the UAE has made great strides in strengthening its efforts to prepare and develop the business environment in the country in accordance with global best practices and standards.