To obtain the qualifying free zone person (QFZP) status. A free zone must fulfill several conditions, one of which is maintaining adequate substance. Adequate substance refers to having a substantial presence and operational activity within the free zone or designated zone. This includes:

1. Core Income Generating Activity: The primary revenue-generating activities of the entity should be conducted within the free zone or designated zone.
2. Adequate Assets: The entity should possess sufficient tangible and intangible assets necessary to support its operations within the free zone.
3. Adequate Number of Qualified Full-time Employees: The entity should employ an adequate number of qualified full-time personnel to carry out its operations effectively.
4. Adequate Operating Expenditure: The entity should incur an appropriate amount of operating expenditure commensurate with the scale and nature of its activities within the free zone.

While the entity can outsource certain activities to other entities within the free zone or designated zone. The Qualifying Free Zone Person QFZP needs to exercise adequate supervision over these outsourced activities. This ensures that the core activities and substance requirements are met satisfactorily.

How MASAR Chartered Accountants Helps You:

MASAR Chartered Accountants can indeed provide outsourced services to assist free zone persons in fulfilling the adequate substance requirement. These services are designed to support entities in maintaining qualified substances within the free zones or designated zones. Our outsourced services include:

1. Financial Services: MASAR can offer a range of financial services tailored to the specific needs of the entity, including financial analysis, budgeting, forecasting, and financial reporting.
2. Bookkeeping Services: We can handle all aspects of bookkeeping, ensuring accurate and up-to-date records of financial transactions.
3. Management Services: Our team can provide strategic management support, assisting with decision-making processes, and helping to optimize operational efficiency.
4. Accounting Services: MASAR offers comprehensive accounting services, including preparation of financial statements, tax compliance, and adherence to accounting standards.
5. CFO Services: Our experienced professionals can act as virtual CFOs, providing high-level financial expertise and strategic guidance to the entity.

By availing of these outsourced services from MASAR Chartered Accountants. Free zone persons can meet the adequate substance requirement while benefiting from expert financial and management support tailored to their specific needs.