Key Takeaways
4 insights · 8 min readIFZA’s Compliance Department asks for four things: a business plan for 2026–2027 (signed and stamped on letterhead), proof of address for every shareholder (passports are not accepted), audited or IFRS financial statements, and proof the company performed activities.
A company with no activity still submits financial statements (a simplified IFRS set) and a business plan, and confirms the nil activity in writing. “No activity” is answered with documents, not silence.
Our fees: IFRS financial statements AED 999, a 2026–2027 business plan AED 500 (AED 1,500 for both), or a full audit report AED 1,499 + VAT where an audit is required.
IFZA sets a deadline and warns that missing it risks administrative penalties and further compliance actions — so respond with one complete, correct set before it expires.
An IFZA compliance inspection asks for four documents: a business plan for 2026–2027 (signed and stamped), proof of address for every shareholder (not a passport), audited or IFRS financial statements, and proof the company operated. A dormant company still submits statements and a plan, confirming the nil activity in writing.
What is an IFZA compliance inspection?
It is a review by IFZA’s Compliance Department to confirm that a licensed company is genuine, correctly owned and compliant — part of the know-your-customer duty every UAE registrar carries, and separate from an FTA tax audit. It arrives as an email listing documents that are “outstanding or require re-submission”, and the same four come up every time:
- A business plan for 2026–2027, signed and stamped on your company letterhead.
- Proof of address for every beneficial owner and shareholder — a passport is not accepted.
- Audited or IFRS financial statements (balance sheet, income statement, cash flow).
- Proof the company performed activities — invoices, contracts, agreements, or share certificates for holding companies.
The tone causes most of the worry — “outstanding”, “penalties”, “further compliance actions”. Strip that away and it is a documentation request: answered with the right set, it closes; answered with a passport where an address document was asked for, or ignored until the deadline, it escalates.
Deadline alert: penalties for missing it
IFZA sets a deadline in the notice and is explicit that failing to provide the documents within the stipulated timeframe may result in administrative penalties and further compliance actions — so do not leave it. Get the documents prepared →
Expert Tip
A dormant company is not exempt — it has the most to gain from answering correctly. It still submits a simplified IFRS statement set, a business plan describing intended activity, proof of address for each owner, and a written confirmation of nil trading. Silence is what turns a routine inspection into penalties.
What preparing the documents costs
| Document | Fee | When it applies |
|---|---|---|
| Financial statements (IFRS) | AED 999 | A company with low or no activity |
| Business plan (2026–2027) | AED 500 | Signed & stamped on your letterhead |
| Both (statements + business plan) | AED 1,500 | The usual inspection bundle |
| Full audit report | AED 1,499 + VAT | Where a full audit is required |
| Proof of address & activity | You supply | No fee — we advise on what IFZA accepts |
Got the notice and short on time?
We prepare the IFRS statements and the business plan, advise on proof of address and activity evidence, and submit one complete file before your deadline.
How to respond to the inspection
Answer it as one complete file rather than piecemeal — a partial upload is bounced back for re-submission against the same clock:
- Read the list against your company — the four categories above — note which you can supply as-is and which need preparing.
- Prepare the financial statements — IFRS statements from your actual records; a simplified set where activity was minimal, never nothing.
- Draft the business plan — two years of intended activity, then sign and stamp it on company letterhead.
- Gather proof of address — a current utility bill, tenancy or bank statement for each owner — not a passport.
The documents that most often come back
• Proof of address — a passport is rejected; provide a utility bill, tenancy or bank statement for each owner.
• Financial statements — submitting nothing because “no activity” is the wrong answer; a simplified IFRS set still applies.
• The business plan — it has to be signed and stamped on letterhead, and cover 2026–2027; an unsigned draft comes back.
The deadline, the timeline, and nil-activity companies
The notice gives a deadline and warns of administrative penalties if it is missed, so a single complete, correct submission before it expires beats a rushed partial one that is returned. On timing, the statements and business plan are typically ready in a few working days once your records are provided — trade licence, MOA, 2025 bank statements (or confirmation there is no account), expenses, and your receivable/payable balances. [VERIFY the exact timeframe stated in your IFZA notice.] If you have not traded, the route is the same but lighter: a simplified statement set, a business plan of intended activity, and a written confirmation of nil business. The source-of-wealth side that often accompanies these inspections is covered in our guide to the IFZA Source of Wealth Declaration, and the wider KYC duty in our AML compliance service.
Fastlane Tax Team
FTA-registered tax agents with 4,000+ corporate tax and VAT filings across the UAE mainland and 40+ free zones. Every guide is reviewed against current FTA regulations before publishing.
Ask the team a question