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Tag: corporate tax registration uae

  • UAE Corporate Tax Registration: Who Must Register?

    UAE Corporate Tax Registration: Who Must Register?

    Corporate tax has transformed the business landscape in the UAE, bringing the country in line with global transparency and tax standards. Whether you operate a multinational company, a free zone entity, a small consultancy, or a freelance business, understanding the UAE Corporate Tax Registration rules is essential for staying compliant and protecting your license.

    The new tax framework is governed by Federal Decree-Law No. 47 of 2022, and registration is managed through the Federal Tax Authority (FTA) via the EmaraTax digital portal. Once registered, companies receive a Tax Registration Number (TRN) and are required to file an annual return, usually within nine months from the end of the financial year.

    Many assume that registration is only required for businesses that actually pay tax. However, under the law, registration is mandatory even if your income is below the taxable limit, or you qualify for exemptions. It proves your compliance, enables access to reliefs, and strengthens trust with banks, partners, investors, and regulators.

    Failing to register can result in:

    • An AED 10,000 penalty
    • Potential licensing restrictions or renewal blocks
    • Reputational risk and compliance issues

    Who Is Required to Register for Corporate Tax in the UAE?

    The Corporate Tax Law defines a wide range of entities that must complete corporate tax registration UAE procedures. Key categories include:

    1. Mainland and Free Zone Companies

    All incorporated legal entities operating in the UAE must register, regardless of size, revenue, or tax rate. This includes:

    • Mainland companies, LLCs, PJSCs, PSCs, and other registered entities
    • Free Zone companies, including those eligible for 0% tax on qualifying income
    • Holding companies and special purpose vehicles
    • Dormant companies that hold an active commercial license

    If you possess a UAE trade license, you are required to register. Free zones are not exempt from registration; only the potential tax payment varies.

    2. Foreign Companies with Taxable Nexus

    Foreign companies must register if they have a taxable presence in the UAE through:

    • A Permanent Establishment (PE), such as a branch, office, or fixed site
    • Effective place of management in the UAE
    • Income derived from real estate or immovable property inside the UAE

    Foreign investors should evaluate whether strategic decisions or operations in the UAE trigger the need for registration.

    3. Individuals Earning More Than AED 1 million Annually

    Corporate tax also applies to natural persons conducting business activities in the UAE. Must register once annual UAE business income exceeds AED 1 million, including:

    • Freelancers & consultants
    • Influencers and online earners
    • Sole proprietorships and traders
    • Independent professionals under permits or licenses

    Not included: salary income, personal dividends, savings, returns on real estate owned personally.

    4. Independent Partnerships

    Professional partnerships such as:

    • Legal firms
    • Accounting & audit firms
    • Medical or engineering partnerships

    These partnerships are treated as single taxable entities, not as individual partners.

    Who Is Exempt from Corporate Tax Registration?

    Specific categories are exempt, but may still need to apply for a TRN:

    Exempt Category Notes
    Government entities Fully exempt by law
    Government-controlled sovereign entities Exempt for specific activities
    Approved charities & public benefit organisations Must apply for recognition
    Qualifying investment funds Must meet conditions to maintain exemption
    Extractive and non-extractive natural resource activities Taxed under separate regimes

    Note: Some exempt persons must still register to file annual declarations.

    Voluntary UAE Corporate Tax Registration

    Businesses can voluntarily register before they become liable. Benefits include:

    • Enhanced credibility with banks and investors
    • Better accounting structure and record keeping
    • Easier scaling and compliance readiness
    • Ability to claim future exemptions or reliefs

    Voluntary registration does not trigger tax payments until thresholds are met.

    EmaraTax Pre-Registration

    The FTA introduced pre-registration invitations within the EmaraTax portal, encouraging businesses to register before deadlines. If your company did not receive an invitation, you should register manually without delay to avoid penalties.

    Documents Required for Corporate Tax Registration

    Below are the documents required for corporate tax registration in the UAE:

    For Companies

    • Trade license copy
    • MOA / AOA or partnership agreement
    • Passport & Emirates ID for shareholders/directors
    • Contact information and registered business address
    • Financial year details
    • Financial statements (if requested)

    For Individuals

    • Emirates ID or passport
    • Trade license or permit (for business activities)
    • Proof of UAE business income
    • Contact information and address details

    Strategic Benefits of Early Registration

    • Banking and investor confidence
    • Access to Free Zone relief & Small Business Relief
    • Smooth license renewals
    • Avoidance of penalties and delays
    • Strong compliance reputation

    Large Multinationals & OECD Pillar 2 Alignment

    For multinational groups with revenues exceeding €750 million (approx. AED 3.15 billion):

    • The UAE has implemented the Domestic Minimum Top-Up Tax (DMTT) at 15%
    • Applies to financial years beginning 1 January 2025
    • Applies to groups with multiple international entities operating across jurisdictions

    Multinationals should:

    • Review structure and data systems
    • Register all constituent entities
    • Prepare transition readiness

    Expert Guidance With UAE Corporate Tax Registration

    Understanding who needs to register for UAE Corporate Tax is the first step; executing it correctly is crucial to avoid penalties and secure compliance confidence.

    Shuraa Tax supports SMEs, free zone companies, partnerships, investors, individuals, and multinationals with complete compliance management, including:

    Start your registration with expert support

    📞 Call: +(971) 44081900
    💬 WhatsApp: +(971) 508912062
    📧 Email: info@shuraatax.com

    Frequently Aksed Questions

    Q1. Do all UAE businesses need to register for corporate tax?

    Yes. All companies must register, even if they have no profit.

    Q2. Do dormant companies need to register?

    Yes, if they still hold a valid trade license.

    Q3. Do small businesses below AED 375,000 profit need to register?

    Yes. Relief affects tax payable, not registration requirements.

    Q4. Are charities required to obtain a TRN?

    Most must register first and then apply for exemption.

    Q5. Can individuals register voluntarily below AED 1M?

    Yes, useful for credibility and growth readiness.

    Q7. Does registration mean tax must be paid?

    No. Filing is required, but payment depends on thresholds and reliefs.

    Q8. What is the penalty for late registration?

    AED 10,000.

    Q9. What if a business shuts down?

    Submit a deregistration request via EmaraTax.

  • How to Register Corporate Tax in UAE in 2026

    How to Register Corporate Tax in UAE in 2026

    The United Arab Emirates (UAE) introduced a corporate tax system to strengthen its economy and bring its tax policies in line with global standards. As of June 1, 2023, businesses in the UAE are required to pay a 9% corporate tax on profits above AED 375,000. While this change may seem new to many, it plays a key role in supporting the country’s growth and creating a more transparent business environment.

    In 2026, it’s more important than ever for companies and individuals doing business in the UAE to complete their corporate tax registration on time. Failing to register within the deadline set by the Federal Tax Authority (FTA) can result in penalties and legal issues.

    Additionally, starting January 1, 2025, the UAE will impose a 15% minimum top-up tax on large multinational companies with consolidated global revenues of €750 million or more, in line with the OECD’s global minimum tax agreement.

    Therefore, we will guide you through everything you need to know about how to register for corporate tax in UAE in 2026. We’ll explain who needs to register, what documents are required, and the simple steps to complete your registration.

    What is Corporate Tax in UAE?

    Corporate Tax (CT) is a direct tax imposed on the net profits of businesses. Introduced by the UAE government, this tax aims to diversify national revenue sources and align the country’s tax system with international standards.

    The implementation of corporate tax also enhances transparency and supports the UAE’s economic growth by ensuring that businesses contribute fairly to the nation’s development.

    UAE Corporate Tax Rates

    The corporate tax rates in the UAE are structured to support small businesses while ensuring larger entities contribute appropriately:

    • 0% on taxable income up to AED 375,000
    • 9% on taxable income exceeding AED 375,000

    This tiered approach encourages entrepreneurship and supports the growth of small to medium-sized enterprises.

    Exemptions and Exceptions

    Certain entities and income types are exempt from corporate tax in the UAE:

    • Government Entities: Federal and Emirate-level government bodies.
    • Government-Controlled Entities: Businesses wholly owned by the government.
    • Extractive and Non-Extractive Natural Resource Businesses: Companies involved in the extraction and exploitation of natural resources.
    • Qualifying Public Benefit Entities: Organizations serving the public interest.
    • Qualifying Investment Funds: Funds meeting specific regulatory criteria.
    • Pension or Social Security Funds: Both public and private funds under regulatory oversight.
    • Wholly Owned UAE Subsidiaries: Subsidiaries of exempt entities.

    Additionally, businesses operating in free zones may benefit from a 0% tax rate on qualifying income, provided they meet certain conditions, such as maintaining adequate substance and complying with transfer pricing rules.

    Who Needs to Register for Corporate Tax in UAE?

    UAE corporate tax registration is mandatory for various entities and individuals engaged in business activities.

    1. Mainland Companies

    All businesses operating in the UAE mainland, including Limited Liability Companies (LLCs), Public Joint Stock Companies (PJSCs), and other legal entities.

    2. Free Zone Entities

    Companies established in UAE Free Zones must register for corporate tax, even if they qualify for a 0% tax rate on certain income.

    3. Natural Persons (Individuals)

    Individuals conducting business activities in the UAE, such as freelancers or sole proprietors, must register for corporate tax if their annual turnover exceeds AED 1 million.

    4. Branches of Foreign Companies

    Foreign companies with a permanent establishment or a fixed place of business in the UAE are obligated to register for corporate tax.

    5. Non-Resident Juridical Persons

    Foreign legal entities that have a permanent establishment or derive income from the UAE are subject to corporate tax and must register accordingly.

    6. New Businesses

    Companies incorporated, established, or recognized in the UAE after 1 March 2024 must complete their corporate tax registration within three months from the date of incorporation.

    Failing to register for corporate tax by the specified deadlines can result in an administrative penalty of AED 10,000.

    When to Register for Corporate Tax in 2026?

    The deadlines for corporate tax registration in the UAE depend on your business type, incorporation date, and residency status.

    Resident Juridical Persons (Companies)

    For entities incorporated before 1 March 2024:

    The registration deadline is based on the month your business license was issued:

    License Issuance Month Registration Deadline
    January – February 31 May 2024
    March – April 30 June 2024
    May 31 July 2024
    June 31 August 2024
    July 30 September 2024
    August – September 31 October 2024
    October – November 30 November 2024
    December 31 December 2024

     

    Note: The corporate tax registration deadlines were issued by the UAE Federal Tax Authority in 2024 and apply to entities established before 1 March 2024. Businesses incorporated after that date must register within 3 months of incorporation.

    If your company holds multiple licenses, use the one with the earliest issuance date to determine your deadline.

    For entities incorporated on or after 1 March 2024: 

    • UAE-incorporated entities (including Free Zone companies): Register within 3 months of incorporation.
    • Foreign entities effectively managed and controlled in the UAE: Register within 3 months from the end of their financial year.

    Non-Resident Persons

    Permanent Establishment: Non-resident entities with a permanent establishment in the UAE before March 1, 2024, must register within nine months from the date the permanent establishment was established.

    Documents Required for UAE Corporate Tax Registration

    To register for corporate tax in the UAE, businesses are required to submit specific documents as part of the registration process. These documents help the Federal Tax Authority (FTA) to verify the business and tax details. The general documents include:

    • Trade license
    • Emirates ID / Passport
    • Proof of address
    • Shareholder and director information
    • Corporate bank account details
    • Financial statements (Balance sheets, income statements, etc.)
    • VAT Registration Details (if applicable)
    • Declaration of taxable period
    • Other relevant documents

    Ensure all documents are clear and legible. The FTA accepts digital submissions in PDF or Word formats, with a maximum file size of 5 MB per document. All registrations must be completed through the EmaraTax platform.

    How to Register for Corporate Tax in UAE?

    Here’s a simple step-by-step process for registering corporate tax in the UAE through the Federal Tax Authority’s (FTA) EmaraTax portal.

    1. Access the EmaraTax Portal

    Visit the EmaraTax portal (https://eservices.tax.gov.ae). If you already have an account (e.g., for VAT purposes), log in using your credentials. If you’re a new user, create an account by registering with your email and contact details.

    2. Select or Add a Taxable Person

    Upon logging in, navigate to the “Taxable Person” section. If your business entity isn’t listed, click on “Add Taxable Person” and provide the necessary details.

    3. Initiate UAE Corporate Tax Registration

    Within the Taxable Person dashboard, locate the “Corporate Tax” tile. Click on “Register” to begin the registration process.

    4. Complete Business Information

    Fill in the required details about your business, including:

    • Trade license number and issue date
    • Legal entity type (LLC, Sole Proprietorship, Free Zone Company, etc.)
    • Company address and contact details
    • Financial year start and end dates

    5. Upload Required Documents

    Upload all the necessary documents. Make sure the documents are:

    • Clear and valid
    • In PDF or JPEG format (as per FTA guidelines)
    • Within the file size limits specified on the portal

    6. Add Authorised Signatory

    Input the details of the individual authorised to sign on behalf of the business. Upload necessary identification documents, such as Emirates ID or passport.

    7. Review and Submit Application

    Carefully review all entered information for accuracy. Acknowledge the declaration confirming the correctness of the provided information. Click “Submit” to finalise your Corporate Tax registration application.

    8. Application Review by FTA

    The FTA will review your application and may request additional information if needed. You can track the status of your application through your EmaraTax dashboard.

    9. Receive Corporate Tax Registration Number (TRN)

    Upon approval, you will receive your Corporate Tax Registration Number (TRN) via email and through your EmaraTax account. Save this number for future tax filings and correspondence with the FTA.

    If you’re unsure about any step or need professional assistance, consider reaching out to tax consultants like Shuraa Tax for smooth and hassle-free corporate tax registration in UAE.

    Benefits of Timely UAE Corporate Tax Registration

    Registering for corporate tax on time in the UAE isn’t just about compliance, it also brings several important benefits for your business. Here’s why:

    1. Avoid Penalties

    One of the biggest advantages of registering on time is avoiding fines. The Federal Tax Authority (FTA) imposes an AED 10,000 penalty for late registration.

    2. Build a Strong Business Reputation

    Timely compliance shows that your company is reliable and professional. It helps build trust with clients, investors, and government authorities.

    3. Smooth Tax Filing Later

    Early registration gives you more time to understand the process and get your records in order. It helps you prepare for corporate tax filing and payments without last-minute stress.

    4. Access to FTA Services

    Once registered, you gain access to FTA resources and support for tax-related matters. This includes help with tax returns, exemptions, and any clarifications.

    5. Compliance with UAE Tax Law

    Most importantly, timely registration keeps your business compliant with the UAE Corporate Tax Law, which is mandatory for all applicable entities.

    How Shuraa Tax Can Assist

    Registering for corporate tax in the UAE in 2026 is very important for every business. It helps you follow the law, avoid big fines, and stay ready for future tax filings. The sooner you register, the smoother the process will be, and you won’t have to worry about missing any deadlines. If you’re unsure about where to start or need help with the process, Shuraa Tax is here for you.

    Our team makes corporate tax registration easy and stress-free. We also offer help with VAT registration, accounting & bookkeeping services, and all other tax-related services in the UAE. Get in touch with us today and let us handle all your tax needs

    Contact us today for personalised assistance:

    📞 Call: +(971) 44081900
    💬 WhatsApp: +(971) 508912062
    📧 Email: info@shuraatax.com

  • Documents Required for Corporate Tax Registration in UAE

    Documents Required for Corporate Tax Registration in UAE

    Corporate Tax is one of the biggest changes to business rules in the UAE, introduced on June 1, 2023. The aim is to bring the UAE in line with global tax practices while still keeping the rates attractive for businesses. Now, if you run a company in the mainland, a free zone, or even offshore, corporate tax registration with the Federal Tax Authority (FTA) has become a must.

    Registering on time is not just about following the law, it also helps you avoid penalties and shows your business is reliable and compliant. The whole process, however, depends on one key thing: having the right documents in place. If even one paper is missing or outdated, it can delay your registration and create unnecessary problems.

    Dealing with the legalities can be tricky, but you don’t have to do it alone. Shuraa Tax offers expert help with corporate tax services in UAE. We can guide you through everything, from essential documents required for corporate tax registration to filing your tax returns, to make sure your business is fully compliant.

    Who Needs to Register for Corporate Tax in UAE?

    Almost every business or person engaged in business activities in the UAE must register for Corporate Tax. This is a mandatory requirement to ensure compliance with the new tax laws.

    1. UAE-based businesses:

    This includes all companies, partnerships, and other juridical entities established in the UAE mainland and free zones. Even if a free zone company qualifies for a 0% tax rate, it still needs to register and get a Corporate Tax Registration Number (TRN).

    2. Foreign businesses:

    Non-resident companies must register if they have a “Permanent Establishment” in the UAE. This means having a fixed business presence, such as a branch, office, or long-term project.

    3. Individuals (Natural Persons):

    You might need to register if you’re an individual earning income from a business or freelance activity in the UAE and your annual turnover exceeds AED 1 million. This doesn’t apply to income from salaries, personal investments, or real estate (in your personal capacity).

    4. Exempted Persons:

    Even entities that are exempt from paying Corporate Tax, such as government bodies or qualifying public benefit organizations, may still be required to register with the Federal Tax Authority (FTA) to prove their exemption status.

    Note: Corporate tax is charged at 9% on profits above AED 375,000, while income up to AED 375,000 is taxed at 0% (to support small businesses and startups).

    Documents Required for Corporate Tax Registration in UAE

    When applying for corporate tax registration with the Federal Tax Authority (FTA), you’ll need to prepare and upload a set of documents. Each document plays an important role in proving your business’s identity, structure, and financial standing. Here’s a breakdown:

    1. Trade License Copy

    Your valid trade license is the most important document. It shows that your business is legally registered in the UAE and outlines the activities you are allowed to carry out. Make sure the license is renewed and up to date, as expired licenses can delay the registration process.

    2. Certificate of Incorporation (if applicable)

    This applies to certain types of businesses, such as companies incorporated in free zones or under specific laws. It’s proof that your company has been legally established and recognized by the authorities.

    3. Memorandum of Association (MOA) or Articles of Association (AOA)

    These documents explain the structure of your company, such as the roles of shareholders, shareholding percentages, and rules for company management. The FTA may need this to understand the ownership and control of the business.

    4. Lease Agreement / Ejari Certificate

    This serves as proof of your business address in the UAE. Whether it’s an office, warehouse, or shop, the FTA requires confirmation that your company has a registered physical location.

    5. Passport and Emirates ID Copies of Shareholders/Owners

    All major shareholders, owners, and sometimes directors need to provide valid passport copies and Emirates IDs (if they are UAE residents). This helps the FTA verify the individuals behind the business.

    6. Details of Directors and Managers

    Apart from the owners, you’ll need to submit details of people managing or controlling the business. This could include board members, directors, or managers authorized to make decisions on behalf of the company.

    7. Tax Registration Number (TRN) – If Registered for VAT

    If your business is already registered for VAT in the UAE, you’ll need to provide the VAT TRN certificate. It helps the FTA link your VAT and corporate tax records under one profile.

    8. Latest Audited Financial Statements (if available)

    While not mandatory for all businesses at the registration stage, submitting financial statements can support your application and help the FTA understand your company’s size and profitability. For larger businesses, this may become a requirement.

    9. Bank Account Details

    You’ll need to provide your company’s official bank account details, including the IBAN and account number. This ensures transparency and helps in linking financial transactions for tax purposes.

    10. Power of Attorney (if applicable)

    If someone else (like a tax consultant or PRO) is handling your corporate tax registration on your behalf, you’ll need to provide a notarized Power of Attorney. This document authorizes them to act for your business in front of the FTA.

    11. Approvals from Relevant Authorities (if required)

    Certain businesses in regulated sectors (like healthcare, education, or financial services) may need to submit approvals or licenses from their respective governing authorities. These are only required for specific industries.

    12. Group or Parent Company Details (if registering as a tax group)

    If your company is part of a bigger group or registering under the “tax group” scheme, you’ll need to provide:

    • Parent company details
    • Group ownership structure
    • Supporting documents linking subsidiaries

    This ensures the FTA recognizes the entire group as one tax entity where applicable.

    Note: It is highly recommended to have your financial statements ready. The FTA may request financial statements to determine your tax liability and to confirm your business’s financial status, especially if you are claiming a zero percent tax rate. These documents include the income statement, balance sheet, and cash flow statement.

    How to Register for Corporate Tax in the UAE?

    Here’s a simple step-by-step guide for corporate tax registration in the UAE:

    Step 1: Create an FTA Account

    Visit the official FTA website: tax.gov.ae If you don’t already have an account, create one by providing:

    • Email ID
    • Password
    • Security verification details

    You’ll receive a confirmation email to activate your account.

    Step 2: Log in to the FTA Portal

    Once your account is active, log in with your credentials. Go to the Corporate Tax section inside the portal.

    Step 3: Start a New Corporate Tax Registration Application

    Select “Register for Corporate Tax.” The system will generate an application form for you. Before starting, carefully read the FTA’s instructions on eligibility and compliance.

    Step 4: Fill in Basic Business Details

    You’ll need to enter:

    • Company name (as per license)
    • Trade license number and expiry date
    • Company type (mainland, free zone, offshore)
    • Legal structure (LLC, sole establishment, etc.)
    • Business activity

    Step 5: Provide Owner and Management Information

    Upload passport and Emirates ID copies of all shareholders/partners. Add details of directors, managers, or authorized signatories.

    Step 6: Enter Contact and Address Information

    Provide official company contact details (email, phone number). Enter your registered office address (lease/Ejari certificate details).

    Step 7: Upload Required Documents

    Attach all supporting documents, such as:

    • Trade license
    • MOA/AOA
    • Passport & Emirates ID copies
    • Bank account details
    • Financial statements (if available)

    Step 8: Review and Submit the Application

    Double-check all entered details and uploaded documents. Submit the application online through the portal.

    Step 9: FTA Review and Approval

    The FTA will review your application. If additional information is needed, they will notify you via email. Once approved, your Corporate Tax Registration Number (TRN) will be issued.

    Step 10: Maintain Compliance

    Keep your TRN safe as it will be required for filing returns. File corporate tax returns annually based on your financial year. Maintain accurate records to avoid penalties.

    Why Professional Assistance Can Help

    Getting your corporate tax registration right in the UAE starts with having the correct documents in place. It not only makes the process smoother but also ensures you avoid unnecessary delays or compliance issues later. The sooner you register, the smoother things will be for you in the long run.

    At Shuraa Tax, we’re here to make the process simple. From helping you collect the right papers to completing the registration, our team takes care of it all. Plus, we offer a full range of taxation services in the UAE, so whether it’s VAT, bookkeeping, audits, or compliance, we’ve got you covered.

    Reach out to Shuraa Tax today and let us take the stress out of corporate tax for you.

    📞 Call: +(971) 44081900
    💬 WhatsApp: +(971) 508912062
    📧 Email: info@shuraatax.com