Business Accounting

Client:
MiraTech Solutions FZ-LLC – Mid-sized Software Development Company, Dubai Internet City

Legal Area:
Corporate Law / Business Accounting Compliance / Commercial Advisory

Background:
MiraTech Solutions faced inconsistencies in their financial reporting due to outdated accounting practices and a lack of formal internal controls. These issues were discovered during preparations for attracting external investors. There were also concerns about VAT compliance, employee gratuity liabilities, and unclear shareholder dividend distribution policies.

The client approached Ahcene Law Firm seeking legal and structural clarity before entering negotiations with potential stakeholders.

Legal Issues Identified:

• Improper classification of shareholder loans as capital contributions
• Missing or outdated employment contracts impacting financial liabilities
• VAT filings that were inconsistent with invoicing patterns
• Unstructured dividend policy causing potential internal disputes

Ahcene Law Firm’s Approach:

1. Legal & Financial Compliance Audit:
   We partnered with an accounting consultant to perform a full internal legal audit of the company’s financial structure, contracts, and tax filings from the previous 3 years.
2. Corporate Structuring Advisory:

1. 1. Drafted and implemented a formal shareholder agreement to govern dividend distribution and equity dilution in case of investment.

   2. Reclassified informal shareholder contributions under UAE Commercial Companies Law.

   3. Tax & Labor Compliance Corrections:

• Ensured alignment between accounting reports and Federal Tax Authority (FTA) VAT filings.
• Reviewed and updated all employment contracts, gratuity accruals, and end-of-service benefit calculations in compliance with the UAE Labour Law.

Investor-Readiness Legal Pack:
Prepared all legal documentation and compliance records to facilitate due diligence by investors, including board resolutions, audited financial summaries, and legal risk disclosures.

Investor-Readiness Legal Pack:
Prepared all legal documentation and compliance records to facilitate due diligence by investors, including board resolutions, audited financial summaries, and legal risk disclosures.

Outcome:

• MiraTech was deemed fully compliant by third-party auditors within 60 days.
• The company successfully secured AED 2.4 million in Series A funding with no legal objections.
• Internal governance was strengthened, improving shareholder trust and reducing long-term legal risk.