Introduction: Why Companies in DIFC May Need to Change Their Accounting Period

In the fast-paced business environment of the Dubai International Financial Centre (DIFC), companies often need to adjust their accounting period. Whether it’s to align with a global parent company’s fiscal year, streamline reporting obligations, or optimize tax efficiency, this change requires a formal step—passing a Board Resolution.

Fortunately, with our free DIFC board resolution template, companies can simplify this process while ensuring compliance with DIFC corporate governance standards.

You can download our free DIFC Board Resolution template (Word) here.

Understanding DIFC Regulations on Accounting Periods

What is an Accounting Period?

An accounting period, also known as a financial year, is the specific timeframe for which a company prepares its financial statements. In DIFC, most companies adopt a 12-month period, but flexibility exists to modify this by way of a formal resolution.

DIFC Laws and Requirements for Financial Year End

Under DIFC Companies Law, every registered company must maintain accurate financial records and submit audited statements for its chosen accounting year. Any change in year-end must be authorized through a board resolution and reflected in filings with the DIFC Registrar of Companies.

Reasons for Changing an Accounting Period in DIFC

Aligning with Parent Company or Group Policies

Multinational corporations often require subsidiaries to synchronize reporting dates. Aligning with a parent company’s fiscal year ensures consistency across the group.

Taxation and Compliance Benefits

Although DIFC itself is tax-friendly, aligning financial periods with international tax jurisdictions can help reduce complexities.

Operational and Strategic Considerations

Companies may also change their accounting year-end to better match business cycles, seasonal industries, or investor reporting requirements.

Board Resolution: Legal Requirement and Best Practices

Why a Board Resolution is Needed

A board resolution formally documents the directors’ decision to change the accounting period. It acts as an official record and provides authority for filing the change with DIFC authorities.

Validity and Authority of Board Resolutions in DIFC

For a resolution to be valid, it must comply with the company’s Articles of Association, be properly dated, signed by directors, and executed in accordance with DIFC corporate governance rules.

Step-by-Step Process to Change Accounting Period in DIFC

Step 1: Drafting the Board Resolution

Use our free template to ensure all required details are included.

DIFC Board Resolution Template

Step 2: Approval and Execution by Directors

At least two directors, including the Chairman where applicable, must sign the resolution.

Step 3: Filing with DIFC Authorities

Once executed, the resolution must be filed with the DIFC Registrar of Companies to update the official company records.

Our Free Template: Board Resolution to Change Accounting Period in DIFC

To help you save time and stay compliant with DIFC regulations, we’ve prepared our ready-to-use board resolution template. It’s structured to include:

• Company details (name, type, and jurisdiction)

• The official resolution wording to change the accounting period

• Signature lines for directors and the chairman

• Compliance alignment with your Articles of Association

Instead of drafting from scratch, you can use our professionally formatted template to speed up the process and avoid costly errors.

Download Our Free DIFC Board Resolution Template (Word)

Common Mistakes to Avoid When Changing Accounting Period

• Missing director approvals

• Using inconsistent dates

• Ignoring Articles of Association compliance

Benefits of Using Our DIFC Board Resolution Template

• Saves time and legal drafting costs

• DIFC-compliant and professional format

• Reduces the chances of rejection by the Registrar

Frequently Asked Questions (FAQs)

1. Can a DIFC company change its accounting period anytime?

Yes, but it must be approved by the board and filed with the Registrar.

2. Who must sign the Board Resolution in DIFC?

At least two directors (including the Chairman, if applicable).

3. Is DIFC Registrar approval required?

Yes, the resolution must be filed with the Registrar of Companies.

4. Can a resolution be passed electronically?

Yes, electronic meetings and signatures are accepted under DIFC rules.

5. How does this affect audit timelines?

Auditors will adjust their reporting cycle to the new year-end.

6. Where can I download the Board Resolution template?

👉 You can download our free DIFC Board Resolution template here

Ready to Finalize Your DIFC Change of Year-End?

Changing an accounting period in DIFC doesn’t have to be complicated. With our free board resolution template, you’ll have the exact wording and structure your company needs to stay compliant.

But drafting the document is only the first step — ensuring it’s filed correctly with the DIFC Registrar and aligned with your company’s Articles of Association is where expert support makes all the difference.

Download Our Free DIFC Board Resolution Template (Word)

And when you’re ready to move forward with confidence, let Theta 7 guide you through the compliance process. From resolutions to filings, we make sure you’re always one step ahead.

🔗 Talk to Theta 7 Today