Corporate tax registration in the UAE: what every company should know

Who must register for corporate tax?

Companies and other legal entities set up in the UAE must register, both on the mainland and in free zones. This applies even if the company has not made a profit yet. Registration means the FTA knows your company exists; it does not mean you will pay tax.

Some individuals running a business in their own name must also register once their business turnover is more than AED 1 million in a calendar year. Salary income, personal investments and personal property are generally not subject to corporate tax.

When is the registration deadline?

The FTA set deadlines based on when your company was set up. For companies set up from 1 March 2024 onwards, the usual rule is that you must register within three months of incorporation. Older companies had deadlines based on the month their licence was issued.

Do not wait for your first tax return. If you are unsure whether your deadline has passed, check now and register as soon as possible. The FTA can charge an AED 10,000 penalty for late registration.

Do free-zone companies need to register?

Yes. A free-zone company must register, even if it hopes to pay 0% tax. Some free-zone companies can qualify for a 0% rate on certain income, but only if they meet specific conditions, including having real activity in the UAE and keeping proper records.

Qualifying status is checked every year. Ask an accountant whether your activities and customers fit the rules before you assume a 0% rate.

Still choosing a licence type? Our mainland vs free zone guide explains the basics.

What should you prepare?

You register online through EmaraTax. It usually goes faster when you have your documents ready before you start.

• A valid trade licence.
• Passport and Emirates ID copies of the owners and manager.
• Memorandum or articles of association, or a similar document.
• Proof that the signatory is allowed to act for the company.
• Company contact details and address.
• Your financial year start and end dates.

What happens after registration?

You receive a corporate tax registration number. From then on, keep accounts for each financial year. A tax return is usually due within nine months after your financial year ends, even when no tax is payable.

Small businesses with revenue of AED 3 million or less may be able to choose small business relief for tax periods ending by 31 December 2026. It must be chosen in the return, and it does not replace registration.

Also check whether you need VAT registration — it is a separate process.