This will depend on the size of the company from a turnover and employee perspective.
It is not mandatory for companies that fall within the category of "small" or "micro" to appoint an auditor. You must be under both the turnover and employee limit to stay within a category.
If your company is classified as a "medium" company (35 or more employees or a turnover of USD 13.5m or greater) then the company must appoint an ADGM Recognised Auditor.
Category | Turnover | Employees |
Micro | < USD 2.5m | ≤ 9 |
Small | < USD 13.5m | ≤ 35 |
Medium | < USD 68m | ≤ 75 |
Other | > USD 68m | ≥ 75 |
If the company is a Parent or Subsidiary Undertaking, you must combine the revenue and employee count of the Company and its Parent and/or Subsidiary Undertaking to determine the size category.
Finally, even if you are not required under the ADGM Regulations to have an auditor appointed, the shareholders of your entity may require that your entity prepares audited accounts. This may be included in company's Articles of Association as an annual requirement, or it can be requested from year to year by the shareholders.