ADGM Accounting and Compliance Guide for Companies
ADGM Accounting and Compliance in UAE: Setting up in the Abu Dhabi Global Market (ADGM) gives your business a common-law jurisdiction, a world-class financial centre on Al Maryah and Al Reem Islands, and access to international investors. But incorporation is only the first step. To stay in good standing, every ADGM entity needs reliable books, IFRS-compliant financial statements and on-time annual filings.
Miss a deadline or get the filing type wrong, and you risk late filing fines, enforcement action and problems with your UAE Corporate Tax position.
This guide explains the key ADGM accounting requirements, audit rules, ADGM annual accounts filing deadlines and how professional ADGM accounting services in UAE from HHMC (HLB HAMT Management Consultancy) can keep your company compliant, all year round.
ADGM Accounting: Accounting & Compliance Requirements for ADGM Companies
Under the ADGM Companies Regulations, companies must keep adequate accounting records that explain their transactions, show their financial position at any time and support the preparation of financial statements.
ADGM guidance states that all companies, including dormant companies and SPVs, must keep adequate accounting records for at least 10 years from the date they are made.
In practice, this means:
- Recording all income, expenses, assets and liabilities
- Keeping supporting invoices, contracts and bank statements
- Performing regular bank and balance-sheet reconciliations
- Preparing IFRS financial statements
- Maintaining audit-ready records, where an audit applies
- Preparing annual accounts for filing with the ADGM Registration Authority
- Keeping records that support UAE VAT and Corporate Tax compliance
The exact obligations depend on your legal form, size, activities and any available exemptions.
ADGM Accounting and Compliance: What Your Company Needs to Manage
In ADGM, accounting and compliance go hand in hand. Clean books feed directly into your financial statements, audit, annual filing and tax returns.
1. Bookkeeping and Accounting Records
Record transactions throughout the year, not just before the filing deadline. A well-run accounting system should cover:
- Sales, purchases, receivables and payables
- Bank transactions and cash
- Payroll and employee costs
- Fixed assets and depreciation
- Intercompany and related-party transactions
- Loans, financing and interest
- Accruals, provisions and prepayments
- Share capital and shareholder transactions
Regular bookkeeping makes year-end closing faster and the audit far smoother.
2. IFRS Financial Statements
ADGM entities are required to prepare their financial statements in accordance with International Financial Reporting Standards (IFRS), unless an exemption applies. The statements must give a true and fair view of the company’s financial position and performance, with the disclosures IFRS requires.
3. Audit Requirements
Audit obligations are not the same for every company. They depend on size, activities and applicable exemptions. Where an audit is required, it must be carried out by an ADGM Registered Auditor listed with the ADGM Registration Authority.
Eligible small companies may use the small companies regime and file simplified, unaudited accounts. ADGM currently treats a company or LLP as small where its turnover does not exceed USD 13.5 million and it has no more than 35 employees. Parent companies are assessed on a group basis, and public interest entities and financial services firms are excluded.
Important for Corporate Tax: if your ADGM company wants to be a Qualifying Free Zone Person (QFZP) and benefit from the 0% Corporate Tax rate, it must maintain audited financial statements, regardless of its size. In that case, the small company audit exemption under ADGM rules does not remove the need for an audit for tax purposes.
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ADGM Annual Accounts Filing Requirements
ADGM annual accounts filing is one of the most important ongoing obligations. Every ADGM company and LLP must file annual accounts with the ADGM Registration Authority, subject to specific exceptions:
- Branches and Foundations must keep accounting records but are not required to file annual accounts
- Restricted Scope Companies are exempt from filing unless the Registrar directs otherwise
Depending on your company’s circumstances, the filing may include:
- Financial statements
- Auditor’s report, where applicable
- Directors’ report, where applicable
- Board approval of the accounts
- Additional information requested in the ADGM filing system
ADGM’s annual accounts process now also asks for additional information, such as the financial period, type of accounts (audited or unaudited, standalone or group), audit details and fees, key financial and staffing data, and the currency of the accounts. These fields do not change the filing deadlines.
When Are ADGM Annual Accounts Due?
Deadlines are linked to your Accounting Reference Date (ARD):
- Private companies and LLPs: within 9 months of the ARD
- Public companies: within 6 months of the ARD
- First accounts, first financial year of 12 months or less: within 9 months of the ARD
- First accounts, first financial year longer than 12 months: within 9 months of the first anniversary of incorporation
Know your ARD from day one and build a compliance calendar. Late filing attracts fines, and ADGM has taken public enforcement action against companies and directors for repeated non-compliance.
What About Small Companies in ADGM?
The small companies regime lets eligible companies and LLPs file a simplified set of accounts, essentially an unaudited balance sheet, instead of full audited accounts.
But eligibility is not automatic. Before deciding which accounts to prepare and file, assess your company’s:
- Turnover
- Number of employees
- Group structure (parent companies are tested on a group basis)
- Business activity and regulatory status
- Corporate Tax position, especially if claiming QFZP status
Getting this wrong can mean filing the wrong type of accounts, or discovering too late that an audit was needed for tax purposes.
ADGM Financial Reporting: A Simple Process That Works
ADGM financial reporting requirements are designed to ensure reliable, transparent financial information. A strong process looks like this:
Monthly bookkeeping → Reconciliations → Management review → Year-end closing → IFRS financial statements → Audit, where applicable → Annual accounts filing
A disciplined monthly cycle catches errors early and avoids delays at audit and filing time. Make sure every significant transaction is properly documented and matches its supporting evidence.
ADGM Accounting Requirements for SPVs and Holding Companies
ADGM SPVs are widely used for holding, investment, family office and structured finance arrangements. A common misconception is that an SPV with little or no activity has no accounting obligations.
That is not the case. ADGM’s guidance specifically confirms that companies, including SPVs and dormant companies, must keep adequate accounting records.
An SPV typically needs records covering:
- Share capital and shareholder funding
- Investments and holdings
- Loans and interest
- Related-party transactions
- Professional and administration fees
- Bank transactions
- Assets and liabilities
Filing, audit and Corporate Tax requirements should be assessed for each SPV based on its circumstances and available exemptions.
Your Year-Round ADGM Accounting Checklist
The most common compliance problem? Leaving everything until year-end. A recurring process keeps you in control.
Monthly
- Record all transactions
- Reconcile bank accounts
- Review receivables and payables
- Post accruals and prepayments
- Review payroll and expenses
- Update fixed asset records
- Review related-party transactions
Quarterly
- Review management accounts
- Analyse significant movements in revenue and costs
- Review balance-sheet accounts
- Check VAT and Corporate Tax records
- Chase missing documentation
Year-End
- Close the books
- Complete balance-sheet reconciliations
- Prepare IFRS financial statements
- Finalise audit schedules, where applicable
- Coordinate with your ADGM Registered Auditor
- Obtain board approval
- Submit the annual accounts through the ADGM online registry before the deadline
The result: predictable reporting, a smoother audit and no last-minute surprises.
ADGM Accounting and UAE Corporate Tax
ADGM companies are subject to UAE Corporate Tax and must consider their tax obligations separately from their ADGM filing obligations.
Accurate accounting records support:
- Revenue and expense analysis
- Taxable income calculations
- Related-party transactions and transfer pricing documentation
- Qualifying and non-qualifying income for QFZP purposes
- Interest and financing costs
- Adjustments from accounting profit to taxable income
- Corporate Tax return preparation and supporting documents
ADGM accounting compliance and UAE Corporate Tax compliance are connected, but they are not the same requirement. Your accounting system should support both.
Financial Services Firms: Additional FSRA Reporting
Firms carrying out regulated financial services activities in ADGM are supervised by the Financial Services Regulatory Authority (FSRA) and must submit periodic prudential and regulatory returns through FSRA’s electronic reporting systems. The content and frequency depend on the firm’s prudential category and regulatory obligations.
Regulated firms therefore need a more robust accounting and reporting framework than a non-regulated commercial company and are excluded from the small companies regime.
Common ADGM Accounting Mistakes to Avoid
Leaving Bookkeeping Until Year-End
Missing transactions and documents are much harder to find months later.
Assuming a Dormant Company Has No Obligations
ADGM guidance is clear: all companies, including dormant companies, must keep adequate accounting records.
Assuming Every Company Files the Same Accounts
Accounts, audit and filing requirements vary with size, group structure, activity and exemptions.
Relying on the Small Company Exemption Without Checking Tax
A company that can file unaudited accounts with ADGM may still need audited financial statements to claim QFZP status for Corporate Tax.
Missing the Filing Deadline
Late filing triggers fines, and ADGM has taken enforcement action against companies and their directors for persistent defaults.
Poor Coordination With the Auditor
Unreconciled balances, incomplete schedules and missing support delay the audit and put your filing deadline at risk.
Why Outsource Your ADGM Accounting?
Handling bookkeeping, IFRS reporting, audit coordination, tax records and annual filings at the same time is demanding, especially without a full in-house finance team.
Professional ADGM accounting services in UAE give you structured, expert support across the full accounting cycle, without the cost of building a large finance department:
- ADGM bookkeeping services
- Monthly accounting and management reporting
- Accounts payable and receivable
- Bank reconciliations
- IFRS financial statement preparation
- Audit coordination with your ADGM Registered Auditor
- Annual accounts filing support
- Corporate Tax and VAT accounting support
- Catch-up and backlog accounting
- Related-party and intercompany accounting
- Accounting system review and implementation
How HHMC Supports ADGM Companies
HHMC (HLB HAMT Management Consultancy) is part of HLB International, the global advisory and accounting network, and supports businesses across Abu Dhabi and the wider UAE.
Our ADGM accounting services help companies, SPVs and holding structures keep organised books, produce reliable financial information and stay ahead of every compliance deadline. Our support includes:
- ADGM bookkeeping services in UAE
- Monthly and annual accounting
- IFRS financial statement preparation
- Audit coordination
- Annual accounts filing support
- Management Information System (MIS) reporting
- Accounting system review
- Backlog accounting
- Accounts payable support
- Corporate Tax and QFZP accounting support
- Compliance-focused accounting processes
Whether you are setting up a new ADGM company, managing an existing entity or SPV, or outsourcing your finance function, HHMC helps you build a structured process that keeps you in control and ready for statutory reporting.
Conclusion: ADGM Accounting and Compliance
Strong accounting is the backbone of a compliant ADGM company. Accurate records, IFRS financial statements, the right audit approach and on-time ADGM annual accounts filing protect you from fines, support your Corporate Tax position and give you better control over your business.
The key is simple: treat accounting as an ongoing business function, not a year-end scramble.
If you need ADGM accounting services in Abu Dhabi, bookkeeping support, IFRS reporting, audit coordination or annual filing assistance, HHMC can help you set up a structured accounting and compliance process.
Looking for a trusted ADGM accounting partner in Abu Dhabi? Contact HHMC today to discuss your requirements.
FAQ's: ADGM Accounting and Compliance
Yes. All ADGM companies, including dormant companies and SPVs, must keep adequate accounting records for at least 10 years from the date they are made.
Every ADGM company and LLP must file annual accounts, with some exceptions. Branches and Foundations keep records but do not file annual accounts, and Restricted Scope Companies are exempt unless the Registrar directs otherwise.
Private companies and LLPs must file within 9 months of their Accounting Reference Date, and public companies within 6 months. First-year deadlines depend on the length of the first financial year.
ADGM entities are generally required to prepare financial statements under IFRS, unless an exemption applies.
Yes. ADGM guidance confirms that SPVs must keep adequate accounting records. Filing and audit obligations depend on the SPV’s circumstances and applicable exemptions.
It depends on size, activity and exemptions. Where an audit is required, it must be carried out by an ADGM Registered Auditor. Companies claiming QFZP status for Corporate Tax need audited financial statements regardless of size.
It allows eligible companies and LLPs with turnover of no more than USD 13.5 million and no more than 35 employees to file a simplified, unaudited balance sheet. Public interest entities and financial services firms are excluded.
Yes. ADGM companies can engage professional providers for bookkeeping, financial reporting, audit coordination and annual filing support. Regulated firms should ensure any outsourcing arrangement meets FSRA requirements.