What Accounting Records Should a UAE Company Maintain?

A UAE company should keep a full set of books that shows every sale, purchase, payment and payroll run, plus the documents that prove each entry. That means a ledger, invoices, bank statements, payroll files, asset and stock records, and yearly financial statements. Most of these must be kept for at least 5 years, and corporate tax records for 7.

The rules sit in more than one law, so the list can feel scattered. This guide puts it in one place: what to keep, how long to keep it, who needs an audit, and how to stay organised without losing your weekends to paperwork. It is current as of October 2026.

Which laws decide what a UAE company must keep?

Four sets of rules apply, and they overlap.

The Commercial Companies Law (Federal Decree-Law No. 32 of 2021) says every company must keep accounting records that give a clear picture of its financial position at any point in time. Under Article 26 of the law, those records stay at the company’s headquarters for at least five years from the end of the fiscal year. Limited liability companies and joint stock companies must also prepare a yearly balance sheet and profit and loss account, and appoint an auditor. In a limited liability company, the manager must prepare the balance sheet, the profit and loss account and an annual report within three months of the year end.

The Tax Procedures Law and its Executive Regulation set the detailed list of records for tax purposes. The Corporate Tax Law adds a seven-year retention rule, and the VAT Law adds invoice and supply records for registered businesses.

Free zone companies should check their zone’s own rules as well. The Companies Law gives way where a free zone has its own rules on a topic. Free zone companies that are registered for tax also follow the federal tax record rules.

What are the core accounting records every company should keep?

The Executive Regulation of the Tax Procedures Law gives the clearest list. It covers the books where you record payments, receipts, purchases, sales, revenue and expenses, and the documents behind each entry. In practice, that breaks down into nine groups of records.

• General ledger and books of account. The running record of every transaction, sorted by account. Your balance sheet and profit and loss account are built from it.
• Sales records. Copies of every invoice and credit note you issue, plus customer contracts and delivery notes.
• Purchase and expense records. Supplier invoices, receipts, purchase orders and credit notes you receive. For cash spending, keep a receipt with enough detail to show what the money was for.
• Bank and cash records. Statements for every company account, card and payment platform, plus monthly reconciliations that match the bank to your books.
• Payroll records. Wage and salary records, which the regulation names directly. Keep payroll sheets, proof of salary transfers and employment contracts so each figure can be traced.
• Fixed asset register. A list of equipment, vehicles, furniture and similar items, with purchase date, cost, depreciation and any sale or disposal.
• Inventory records. If you hold stock, keep quantities and values at the end of each tax period, plus the stock count sheets behind them.
• Financial statements. The yearly balance sheet and profit and loss account, with the trial balance and notes that support them.
• Contracts and supporting documents. Leases, loan agreements, supplier and customer contracts, and any paper that explains why an entry was made.

That last group matters more than it looks. You must keep the documents that support the entries in your books, not only the books themselves. A ledger line that reads “consulting, AED 12,000” is weak on its own. The invoice, the contract and the bank payment make it solid.

Which extra records does VAT add?

If your company is registered for VAT, keep these on top of the core list:

• Tax invoices and tax credit notes, both issued and received.
• Records of all supplies and imports of goods and services.
• Records of adjustments and corrections made to your accounts or invoices.
• Your VAT returns, with the workings that produced each figure.
• Capital asset records, meaning items bought for long-term business use.

Two recent changes affect this area. Since 1 January 2026, the self-invoice for reverse charge purchases, such as services bought from a supplier abroad, is no longer required. Keep the supplier’s invoice, the contract and other proof instead.

E-invoicing is the second change. It becomes mandatory on 1 January 2027 for businesses with revenue of AED 50 million or more, and on 1 July 2027 for other in-scope businesses. Once your date arrives, your invoices will be electronic, so your record system must be able to store them.

Tip: store each invoice with its payment proof and contract in one place. Matching the three takes seconds on the day and hours a year later.

What does corporate tax add to the list?

Under Article 56 of the Corporate Tax Law, a taxable person must keep every record and document that supports its tax return and lets the Federal Tax Authority (FTA) work out its taxable income. Exempt persons must keep records that prove their exempt status.

In practice, add these to your files:

• Financial statements for each tax period.
• The workings that move you from accounting profit to taxable income.
• Proof for every expense you deduct.
• Contracts and pricing support for any dealings with related parties.
• For free zone companies claiming the 0 percent rate as a Qualifying Free Zone Person, records that show you meet the conditions.

How long should you keep each record?

Different laws set different clocks. The simplest safe habit is to keep every accounting record for seven years, and to keep asset and property records longer.

Extra time can stack on top. If you have a dispute with the FTA over your tax obligations, you keep the records for another four years or until the dispute is settled, whichever is later. Since 1 April 2026, you also keep them for two more years when a refund application is pending and the FTA has not yet made a decision.

Does your company need audited accounts?

Not every company does, but many do. For corporate tax, you must prepare and keep audited financial statements if any of these apply:

• Your revenue is above AED 50 million in the tax period.
• You are a Qualifying Free Zone Person, at any revenue level.
• You belong to a tax group, which prepares audited special purpose statements.

Company law adds its own rule. Limited liability companies and joint stock companies must have an auditor carry out an annual audit. Many free zones also ask for audited accounts each year, either at licence renewal or within a set time after year end.

Your accounting standard depends on size. Companies with revenue of AED 50 million or less may use IFRS for SMEs, a simpler version of the international standard. Larger companies use full IFRS. Even if you never need an audit, keep your records in a state an auditor could pick up tomorrow.

Can you keep your records in digital form?

Yes. The Companies Law lets a company keep electronic copies of its original documents under guidelines set by a ministerial resolution. For tax, records must be stored in a way that lets the FTA verify your tax obligations, and the information must be as available as if you had kept the originals.

That points to a few habits. Scan documents at full quality. Use one naming pattern, such as date, supplier and amount. Back up to a second location. Limit who can edit or delete files. Keep the original paper until you have checked that the digital copy is complete and readable.

What happens if your records are missing?

Failing to keep the required records carries an administrative penalty of AED 10,000 per violation. A repeat violation within 24 months costs AED 20,000.

The penalty is not the only cost. Without the document, you may lose a deduction or a VAT claim you cannot prove. In an FTA audit, gaps also make every other figure in your books look less reliable.

A simple routine that keeps your books audit-ready

Good record keeping is mostly habit. This routine works for most small and mid-sized companies:

1. Capture every document the day it arrives, in one shared folder or accounting system.
2. Enter transactions into the ledger at least weekly, so nothing piles up.
3. Reconcile each bank account every month and fix differences straight away.
4. At each period end, count stock and update the fixed asset register.
5. After year end, prepare the financial statements and file everything in one folder per tax period.
6. Review your retention dates once a year, and delete nothing that is still inside its period.

A folder layout helps too. Make one folder per tax period. Inside it, add sub-folders for sales, purchases, bank statements, payroll, assets and stock, tax returns, and contracts. When the FTA or an auditor asks for a year, you can send one folder instead of searching through inboxes and chat threads.

When to get help with your books

A small team can fall behind on this work quickly, especially around VAT returns and year end. HA Group is a Dubai business consultancy that offers accounting and bookkeeping services alongside company setup, trade licence and visa support. A provider like this can set up your ledger, run monthly reconciliations and keep your files ready for an audit or an FTA request.

Whoever you choose, ask which accounting software they use, how they store documents, and how they track changes to tax rules.

Frequently asked questions

How long must a UAE company keep accounting records?

At least five years under the Companies Law and the general tax rules, and seven years for corporate tax records. Capital asset records need 10 years, and real estate records need 15. Keeping everything for seven years covers most cases.

Do small and free zone companies need accounting records too?

Yes. Every company must keep records of its transactions, whatever its size. Free zone companies follow their zone’s rules, and when they are registered for tax they follow the federal tax record rules as well.

Can I keep UAE accounting records only in digital form?

In most cases, yes. A company may keep electronic copies of original documents, and tax rules accept stored records if the FTA can verify your tax position from them. Make sure copies are complete, readable and backed up.

Which records does the FTA ask for in an audit?

Expect requests for the ledger, invoices, contracts, bank statements, payroll, asset and stock records, and the workings behind your returns. If your files are sorted by tax period, you can answer quickly and with less stress.

What is the penalty for not keeping the required records?

The administrative penalty is AED 10,000 per violation, rising to AED 20,000 for a repeat violation within 24 months. You may also lose deductions or VAT claims that you cannot support with documents.

Conclusion

A UAE company should keep its ledgers, sales and purchase documents, bank records, payroll, asset and stock records, and yearly financial statements, with VAT and corporate tax files added where they apply. Keep accounting records for at least five years, tax records for seven, and asset and property records longer. A good result looks like this: any entry can be traced to a document in minutes, and the books are ready if the FTA or an auditor asks.

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