The United Arab Emirates (UAE) has recently introduced a federal corporate tax regime, marking a major shift in how businesses operate in the region. With this new framework, understanding how to register for corporate tax in UAE has become essential for companies of all sizes. Whether you’re a startup, SME, or freelancer, registering correctly—and on time—is now a critical part of staying compliant and avoiding penalties.
Previously known for its tax-free business environment, the UAE still remains highly attractive for investors, but now it requires most active businesses to register for corporate tax with the Federal Tax Authority (FTA). Companies generating annual taxable income above AED 375,000 must register, file returns, and pay a 9% corporate tax rate on profits exceeding that threshold.
This guide is designed to help you navigate the registration process with ease. Whether you’re setting up a new business or already operating in the UAE mainland, free zone, or offshore, we’ll walk you through everything—from eligibility to required documents—so you can register quickly and correctly.
Let’s dive in and make corporate tax compliance simple and stress-free.
Who Needs to Register for Corporate Tax in UAE?
With the UAE’s corporate tax framework now in effect, most businesses are legally required to register with the Federal Tax Authority (FTA). Whether you’re operating on the mainland, in a free zone, or managing a holding company, it’s important to know if your business qualifies for registration—and when.
Eligibility Criteria
- Mainland Companies: All businesses registered and operating in the UAE mainland must register for corporate tax, regardless of their annual revenue. This includes both active trading businesses and those providing services locally or internationally.
- Free Zone Entities: Free zone companies are also required to register for corporate tax. However, many may still benefit from a 0% tax rate if they meet the conditions of a Qualifying Free Zone Person (QFZP), such as earning qualifying income and maintaining proper substance.
- Holding Companies: Entities set up primarily to hold shares, real estate, or intellectual property may also need to register, especially if they earn income from taxable sources like dividends, royalties, or rental income.
In short, if your business is licensed in the UAE, you are most likely required to register—even if you don’t expect to pay tax initially.
Income Threshold
Corporate tax in the UAE applies to companies that generate net taxable income above AED 375,000 per financial year. Here’s how it works:
- Income up to AED 375,000 is taxed at 0% (no corporate tax).
- Income above AED 375,000 is taxed at 9%.
Note: Even if your current income is below the taxable threshold, registration is still mandatory unless your business is legally exempt.
Exempted Entities
While most companies must register, certain types of entities are automatically exempt from corporate tax in the UAE. These include:
- Government and government-controlled entities
- Companies involved in extracting natural resources (oil, gas, etc.), which may already be subject to Emirate-level taxation
- Charities and public benefit organizations that are approved by the Ministry of Finance
- Pension and social security funds
- Certain investment funds under specific conditions
However, even exempt entities must apply for an exemption status through the FTA and may still need to complete registration depending on their business activity.
When to Register for Corporate Tax in UAE
Understanding when to register for corporate tax in UAE is just as important as knowing if you need to. The UAE government has set specific registration deadlines based on each business’s license issue date—so acting on time is critical to stay compliant and avoid penalties.
Corporate Tax Effective Date: From June 2023
The UAE’s corporate tax law officially came into effect on June 1, 2023. From this date onward, businesses operating in the UAE are required to register for corporate tax with the Federal Tax Authority (FTA)—even if their taxable income is currently below the AED 375,000 threshold.
Your business will be taxed based on its financial year starting on or after June 1, 2023. For example:
- If your financial year runs from January to December, your first tax period starts January 1, 2024.
- If it runs from July to June, your first tax period started July 1, 2023.
Regardless of when your tax year begins, registration is mandatory before your deadline.
Why You Should Register Early
Waiting too long to register can lead to serious consequences, including:
- Fines of AED 10,000 or more for late registration
- Delays in future tax filings or refund claims
- Risk of non-compliance during audits or inspections
- Legal complications when renewing your trade license
By registering early, you give your business enough time to prepare financial records, consult with professionals, and avoid last-minute issues.
After Registration: What Comes Next?
Once you’ve completed the process of how to register for corporate tax in UAE, your responsibilities don’t stop there. Staying compliant involves a few important follow-up steps that every business owner should be aware of.
Corporate Tax Registration Number (TRN)
After successful registration, you’ll receive a Corporate Tax Registration Number (also called a TRN) from the Federal Tax Authority (FTA). This unique number confirms that your business is officially registered and eligible to file returns under UAE’s corporate tax system. It should be kept safe and used in all official tax-related communications.
Maintain Proper Financial Records
To stay compliant, you must keep detailed financial records such as:
- Profit and loss statements
- Invoices and receipts
- Payroll data
- Expense reports
- Bank statements
These documents must be retained for at least seven years and should be audit-ready in case the FTA requests a review. Accurate records also help ensure you claim all eligible deductions and file correct returns.
Know Your Filing Deadlines
After your financial year ends, your business is required to:
- Submit a Corporate Tax Return within 9 months
- Pay any tax due by the same deadline
For example, if your financial year ends on December 31, 2024, your filing and payment deadline would be September 30, 2025.
Common Mistakes to Avoid
When learning how to register for corporate tax in UAE, many businesses unintentionally make avoidable mistakes that can lead to delays, penalties, or non-compliance. Here are some of the most common ones:
Delayed Registration
Waiting until the last minute to register can result in missing the FTA’s deadline, which may lead to financial penalties or complications in submitting your first tax return. It’s always best to register early, especially if your business is already generating taxable income.
Using Incorrect Entity Details
Submitting wrong information—like trade license number, legal name, or business structure—can cause your registration to be rejected or delayed. Always double-check your entries and ensure they match your official trade license and legal documents.
Not Updating Business Information
Failing to update your business information (such as address changes, license renewals, or change in business activities) on the FTA portal can lead to compliance issues or missed communication from authorities. Keep your FTA account current to avoid unnecessary complications.
Role of Professional Help
Navigating the process of how to register for corporate tax in UAE can be overwhelming—especially with evolving laws, portal requirements, and documentation. That’s where professional support becomes invaluable.
Why Hiring a Tax Consultant or PRO Service Matters
Tax consultants and PRO services understand the finer details of UAE corporate tax regulations. They ensure that your registration is done accurately and on time, minimizing the risk of errors, delays, or penalties. Their experience helps avoid costly mistakes that new businesses often make.
How Experts Simplify Registration and Ongoing Compliance
Professionals can handle the entire tax registration process—from setting up your FTA account to uploading required documents. Beyond that, they help maintain compliance by assisting with:
- Recordkeeping
- Tax return preparation
- Timely filing
- Responding to FTA inquiries or audits
Recommended for SMEs and Complex Business Structures
While freelancers or small sole proprietors might manage on their own, professional help is highly recommended for SMEs, free zone entities, holding companies, or businesses with multiple stakeholders or international ties. These structures often involve more complex tax planning and compliance needs.
How SH Typing Center Can Help
When it comes to how to register for corporate tax in UAE, SH Typing Center makes the process smooth, accurate, and stress-free—especially for startups, SMEs, and first-time business owners.
Comprehensive Tax Registration Services
SH Typing Center offers end-to-end assistance for corporate tax registration in the UAE. From helping you understand your tax obligations to successfully completing your registration, our team ensures everything is done correctly and on time.
Support with EmaraTax Portal & Documentation
We guide you through the entire process on the EmaraTax portal—including:
- Account creation
- Uploading trade licenses and legal documents
- Ensuring accurate business details
- Submitting the final registration form to the FTA
Our experts make sure no critical step is missed.
Tailored Support for Small Businesses and Startups
Whether you’re a new entrepreneur, a freelancer, or a growing small business, we provide personalized service that fits your needs and budget. Our team understands the specific challenges faced by smaller ventures and ensures you’re fully compliant without unnecessary complexity.
Let SH Typing Center handle your tax registration, so you can focus on running your business with peace of mind.
Stay Compliant—Let SH Typing Center Handle the Rest
Registering for corporate tax in the UAE is now a legal requirement for most businesses. Understanding the process, staying compliant, and avoiding penalties starts with taking the right steps early.
Need assistance? Contact SH Typing Center today for expert help with your corporate tax registration. Our team is ready to guide you every step of the way—quickly, accurately, and affordably.
