UAE Corporate Tax: How to Register Your Business

andreaj59
Jul 24
3 min read

The UAE has always been a global hotspot for businesses thanks to its attractive tax policies. But with the introduction of the UAE Corporate Tax on business profits, it’s crucial for every company to understand how to register and comply with these new rules.

In this comprehensive guide, we’ll walk you through what UAE Corporate Tax is, who needs to register, and exactly how to register your business with the Federal Tax Authority (FTA), ensuring you meet all legal requirements with confidence.

What is UAE Corporate Tax?

As of June 1, 2023, the UAE implemented a federal 9% Corporate Tax on business profits exceeding AED 375,000. This move brings the UAE in line with global tax standards, enhancing transparency while maintaining a competitive business environment.

Profits up to AED 375,000 are tax-exempt, encouraging startups and SMEs.
The standard tax rate is 9% for profits above this threshold.
Certain sectors, such as the extraction of natural resources, follow different rules under the Emirate-level taxation framework.

The Corporate Tax applies to all businesses operating in the UAE, including mainland companies, free zone entities, branches of foreign companies, and individuals conducting business activities under a trade license.

Who Must Register for UAE Corporate Tax?

According to the UAE Federal Tax Authority (FTA), the following entities must register for Corporate Tax:

All UAE businesses with annual profits exceeding AED 375,000.
Businesses with profits below this threshold are encouraged to register but may be exempt.
Foreign companies operating in the UAE or earning income from UAE sources.
Freelancers and self-employed individuals holding valid trade licenses.
Free Zone entities benefiting from corporate tax incentives must still register unless fully exempt under FTA guidelines.

Important: Government entities and certain other organizations are exempt. Always consult official FTA resources or a licensed advisor for specific cases.

Step-by-Step Guide to Register Your Business for UAE Corporate Tax

Step 1: Create an Account on the FTA Portal

Start by visiting the official Federal Tax Authority (FTA) website at https://www.tax.gov.ae. Create an EmaraTax account by providing your business license number, Emirates ID (for UAE nationals and residents), or passport number (for foreign nationals).

Step 2: Gather Required Documents

Before applying, ensure you have:

A valid trade license
Passport and Emirates ID of business owner(s) or authorized signatories
Memorandum of Association (MOA) or company formation documents
Financial records such as audited statements or profit and loss summaries
Details about your business activities

Step 3: Log in and Complete the Corporate Tax Registration Form

Once registered, log into the FTA portal and navigate to the Corporate Tax section. Fill out the registration form accurately, including:

Business details and legal status
Financial year dates
Expected taxable income and accounting period

Step 4: Submit Your Application and Receive Tax Registration Number (TRN)

After submission, the FTA will review your application. If all details are in order, you’ll receive a Tax Registration Number (TRN). This number must be used in all tax filings and correspondence with the FTA.

Important Deadlines and Penalties

The FTA has assigned deadlines based on business license issuance dates for registration. Missing your deadline can result in fines starting at AED 10,000.

Even if your profits are below the taxable limit, you must still register unless you qualify for an exemption. Keep a close eye on official communications from the FTA or consult Verde for updates and reminders.

Benefits of Registering Early

Avoid late registration penalties
Establish credibility with banks, investors, and partners
Prepare for accurate and timely Corporate Tax filings
Gain access to FTA support and compliance resources

How Verde Supports Your Corporate Tax Registration

Understanding and complying with new tax laws can be overwhelming. At Verde FZCO, we specialize in guiding businesses through the entire Corporate Tax registration and compliance process, ensuring:

Accurate document preparation and submission
Liaison with the FTA on your behalf
Strategic tax planning aligned with your business goals
Continuous support for filing and audits

Our expert consultants keep updated with the latest regulations, so you don’t have to worry about missing critical deadlines or making costly mistakes.

Navigating UAE Corporate Tax with Confidence

The introduction of UAE Corporate Tax marks a significant shift in the country’s business landscape. But with the right knowledge and expert support, registering your business and staying compliant can be straightforward and stress-free.

Register early, keep clear records, and lean on trusted partners like Verde FZCO to ensure your business thrives under the new tax regime.