ADGM Accounting Services: What Every ADGM Company Needs to Know About Accounting & Compliance?
Key takeaways
- Every ADGM company including SPVs and dormant companies – must keep adequate accounting records, retained for at least 10 years.
- Financial statements are generally prepared under IFRS, unless an exemption applies.
- Annual accounts are due within 9 months of the Accounting Reference Date for private companies and LLPs (6 months for public companies).
- Small companies (turnover ≤ USD 13.5m and ≤ 35 employees) may file simplified, unaudited accounts – but Qualifying Free Zone Persons need audited accounts to access the 0% Corporate Tax rate.
Where an audit is required, it must be performed by an ADGM Registered Auditor.
Why Accounting Matters for ADGM Companies?
The Abu Dhabi Global Market (ADGM) gives businesses access to an internationally recognised financial centre and a common-law, business-friendly framework. But incorporation is only the beginning.
To stay in good standing, an ADGM company needs reliable books, appropriate financial statements, timely annual filings and, where applicable, an audit by an ADGM Registered Auditor. In ADGM, accounting and compliance go hand in hand.
ADGM Accounting Requirements At A Glance
Obligation | What it means in practice |
Accounting records | Records that explain every transaction and the company’s financial position, kept for at least 10 years from the date they are made. |
Financial statements | Annual financial statements, generally under IFRS, unless an exemption applies. |
Audit | Required depending on size, activity and exemptions. Must be carried out by an ADGM Registered Auditor. |
Annual accounts filing | Filed with the ADGM Registration Authority through the ADGM Online Registry Solution. |
UAE tax | Corporate Tax and VAT obligations apply separately from ADGM filing obligations. |
Your accounting system should capture enough detail to support all of the above. In practice, that means:
- Complete and accurate records of income, expenses, assets and liabilities
- Supporting invoices and documentation for every entry
- Regular bank and balance-sheet reconciliations
- Year-end financial statements and audit files, where applicable
- Records that also satisfy UAE tax and other regulatory requirements
The exact requirements depend on the company’s legal structure, size, activities and any exemptions it qualifies for.
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The Four Pillars of ADGM Accounting Compliance
1. Bookkeeping throughout the year
Transactions should be recorded as they happen – not in a rush before the filing deadline. A well-run system typically covers:
Operations | Balance sheet | Equity & group |
Sales and purchases | Fixed assets | Share capital |
Receivables and payables | Loans and financing | Shareholder transactions |
Bank transactions | Accruals and provisions | Intercompany transactions |
Payroll and employee costs | Expenses and reimbursements | Related-party balances |
2. IFRS financial statements
ADGM entities are generally required to prepare annual financial statements in accordance with International Financial Reporting Standards (IFRS), unless an exemption applies. The statements must fairly present the company’s financial position and performance, with the disclosures relevant to the entity.
3. Audit – where required
Audit obligations are not identical for every company. They depend on size, activities and available exemptions. Where an audit is required, it must be performed by an ADGM Registered Auditor.
Important: Corporate Tax can override the small-company exemption An ADGM company that is a Qualifying Free Zone Person (QFZP) and wants to benefit from the 0% Corporate Tax rate must maintain audited financial statements under the UAE Corporate Tax Law – regardless of its size, and even if it would otherwise qualify as a small company under ADGM rules. |
4. Annual accounts filing
Generally, ADGM companies and LLPs must file annual accounts with the ADGM Registration Authority. Depending on the company, the filing may include:
- Financial statements
- Auditor’s report, where applicable
- Directors’ report, where applicable
- Board resolution approving the accounts
- Additional data requested in the online filing – financial period, type of accounts, audit details, key financial and staffing data, and currency
Branches and Foundations must keep accounting records but have different filing treatment.
When Are ADGM Annual Accounts Due?
Deadlines are linked to the company’s Accounting Reference Date (ARD) – the last day of its financial year.
Situation | Filing deadline |
Private company or LLP (existing) | Within 9 months of the ARD |
Public company | 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 |
Pro tip Confirm your ARD at incorporation and build a compliance calendar around it. ADGM has taken enforcement action against entities for defaults on accounts and reports – late filing is avoidable. |
Does The Small Companies Regime Apply to You?
Eligible small companies and LLPs can file a simplified set of accounts, including an unaudited balance sheet, instead of full accounts.
Test | Small company / LLP |
Turnover | Not more than USD 13.5 million |
Employees | Not more than 35 |
Not eligible | Public interest entities and firms providing financial services |
Before deciding which accounts to prepare, assess the company’s turnover, headcount, business activity, entity type, regulatory status – and its Corporate Tax position (see the QFZP note above).
From Transaction to Filing: The Reporting Cycle
A dependable process makes year-end predictable:
- Monthly bookkeeping
- Reconciliations
- Management review
- Year-end closing
- Financial statements
- Audit, where applicable
- Annual accounts filing
Errors caught monthly are far cheaper to fix than errors discovered during the audit.
SPVs: Limited Activity Does Not Mean No Accounting
Special Purpose Vehicles are widely used in ADGM for holding, investment and structured transactions. ADGM’s accounting guidance applies to limited companies including SPVs and even dormant companies must maintain adequate accounting records.
Typical SPV records cover share capital, investments, loans, related-party transactions, interest income or expense, professional fees, bank transactions, and assets and liabilities. Filing and audit requirements should be assessed on the SPV’s own facts and available exemptions.
Your Year-Round ADGM Accounting Checklist
Monthly | Quarterly | Year-end |
Record all transactions | Review management accounts | Close the books |
Reconcile bank accounts | Analyse revenue and expense movements | Complete balance-sheet reconciliations |
Review receivables and payables | Review balance-sheet accounts | Prepare IFRS financial statements |
Post accruals and prepayments | Check tax and regulatory records | Finalise audit schedules and liaise with the auditor |
Review payroll and expenses | Chase outstanding documentation | Obtain board approval |
Update fixed assets and related-party records |
| File via the ADGM Online Registry Solution |
ADGM Accounting And UAE Corporate Tax
ADGM filing and UAE tax compliance are connected, but they are not the same obligation. Accurate books support the Corporate Tax return – including taxable income, related-party transactions, fixed assets, interest costs and the adjustments between accounting profit and taxable income. Make sure your accounting system is built to serve both.
Regulated Financial Services Firms
Firms carrying on regulated activities are also supervised by the Financial Services Regulatory Authority (FSRA) and must submit periodic regulatory and financial returns for many firms through ADGM’s Electronic Prudential Reporting System (EPRS), depending on their prudential category. These firms need a more comprehensive accounting and regulatory reporting framework than a non-regulated company.
Six Common ADGM Accounting Mistakes
Mistake | Why it hurts |
Delaying bookkeeping | Missing transactions and documents are hard to trace months later. |
Assuming a dormant company has no obligations | ADGM guidance is clear: all companies, including dormant ones, must keep adequate records. |
Assuming every company files the same accounts | Accounting, audit and filing requirements vary with size, activity and exemptions. |
Missing the annual accounts deadline | ADGM has taken enforcement action for defaults on accounts and reports. |
Treating accounting as a year-end task | You lose visibility of performance and cash during the year. |
Not coordinating accounting with the audit | Incomplete schedules and unreconciled balances delay sign-off. |
How HHMC Supports ADGM Companies?
HHMC (HLB HAMT Management Consultancy), a member of the HLB International network, helps UAE businesses keep organised books, produce reliable financial information and stay on top of compliance. Our ADGM accounting services include:
Accounting & bookkeeping | Reporting & compliance |
ADGM bookkeeping services in UAE | IFRS financial statement preparation |
Monthly and annual accounting | Audit coordination |
Accounts payable and receivable | Annual accounts filing support |
Bank reconciliations | MIS and management reporting |
Backlog and clean-up accounting | Corporate Tax accounting support |
Related-party and intercompany accounting | Accounting system review and implementation |
Whether you are setting up a new ADGM entity, running an existing one or outsourcing your finance function, we help you build a structured process that keeps you ready for statutory reporting without the cost of a full in-house team.
Good accounting is not a year-end exercise – it is how an ADGM company stays compliant, audit-ready and in control of its finances. Keep records current, know your ARD, confirm which accounts and audit apply to you, and file on time.
Need help with ADGM Accounting Services? Talk to HHMC about bookkeeping, IFRS financial statements, audit coordination and annual accounts filing. |
FAQ's: ADGM Accounting Services
Yes. ADGM companies must keep adequate accounting records, retained for at least 10 years from the date they are made.
Generally, companies and LLPs must file annual accounts, subject to specific exemptions. Branches and Foundations keep records but are treated differently for filing.
Within 9 months of the Accounting Reference Date for private companies and LLPs, and 6 months for public companies. First-year deadlines depend on the length of the first financial year.
Yes. Bookkeeping, reporting, audit coordination and filing can all be outsourced. Regulated firms should ensure the arrangement meets their FSRA requirements.
Yes. ADGM accounting guidance applies to limited companies, including SPVs. Filing and audit obligations depend on the SPV’s circumstances.
It depends on size, activity and exemptions. Where an audit is required, it must be carried out by an ADGM Registered Auditor. QFZPs seeking the 0% Corporate Tax rate need audited accounts regardless of size.
ADGM entities generally prepare financial statements under IFRS, unless an exemption applies.