The United Arab Emirates has established itself as an international business center for many years, using its strategic location, easy business regulations & tax structure to attract foreign investment.
Effective June 2023, all businesses in the UAE are required to operate under a new Corporate Tax Law, so companies need to adjust to the legal and regulatory requirements of operating a business in this area.
For entrepreneurs planning a company setup in Dubai and for existing business owners, one important question remains: how can businesses stay compliant in this new tax era? The answer lies in understanding and completing the corporate tax registration process correctly and on time.
This blog, Register for Corporate Tax in the UAE: Step-by-Step Process, explains the full registration journey in a clear and practical manner. For professional guidance and end-to-end assistance, you can connect with Damaar Business Set Up Consultants.
Why Corporate Tax Matters in the UAE
The introduction of corporate tax has reshaped the UAE’s business environment, making compliance a key part of sustainable operations.
- Aligns the UAE with global tax standards
- Improves transparency in business operations
- 0% tax on income up to AED 375,000
- 9% tax on income above AED 375,000
- Registration mandatory, even for eligible free zone entities
- Helps avoid penalties such as late registration fines
- Enables smooth dealings with the Federal Tax Authority
- Supports long-term business growth and stability
Who needs to register for corporate tax in the UAE?
All businesses and individuals engaged in commercial activities in the UAE must register for corporate tax. This includes mainland and free zone companies, foreign entities with a taxable presence in the UAE, and sole proprietors or freelancers with annual revenue over AED 1 million. Even those qualifying for the 0% corporate tax rate must register with the Federal Tax Authority to fulfil their obligations and confirm their status as corporate tax registrants. Registration also allows organisations to benefit from applicable exemptions or relief.
Who must register:
- Mainland and free zone companies
- Foreign entities with taxable UAE presence
- Sole proprietors and freelancers with annual revenue > AED 1 million
- Obligation: Register with the Federal Tax Authority regardless of 0% tax eligibility
Purpose of registration:
- Confirm status as a corporate tax registrant
- Access applicable exemptions or relief
Step-by-Step Guide to Register for Corporate Tax in the UAE
Registering for corporate tax in the UAE is a structured and online process. Understanding each step in advance can save time, reduce errors, and make the experience stress-free.
Step 1: Determine Your Eligibility
Before starting the registration process, businesses must confirm whether they fall under the corporate tax regime. The UAE corporate tax applies to mainland companies, free zone entities, foreign companies with a taxable presence in the UAE, and individuals conducting business under a commercial license.
Natural persons, such as freelancers and sole proprietors, are required to register if their annual turnover exceeds AED 1 million. While certain entities, including government bodies and natural resource extraction businesses, may be exempt, these cases are limited. If eligibility is unclear, consulting experts in company formation in the UAE can help avoid compliance risks.
Step 2: Gather the Required Documents
Having the necessary documents ready in advance makes the registration process smoother. The Federal Tax Authority uses these documents to verify the legitimacy and structure of your business.
- Submit a valid trade license
- Provide passport copies of owners or authorized signatories
- Provide Emirates ID copies of owners or authorized signatories
- Submit the Memorandum or Articles of Association (MOA/AOA)
- Include company contact details
- Provide financial year information
- Ensure all documents are scanned clearly in PDF format to prevent delays or rejection
Step 3: Access the EmaraTax Portal
Corporate tax registration is completed through the EmaraTax portal, the official online platform managed by the Federal Tax Authority.
You need to:
- Log in to the portal using existing FTA credentials, UAE Pass, or by creating a new account
- Access the dashboard to create or select a taxable person profile
- Proceed with corporate tax registration through the portal
- Use the portal as a central hub to manage all tax-related obligations
Step 4: Start the Corporate Tax Registration Application
After accessing the portal, businesses can initiate the registration by selecting corporate tax from the available services. Applicants must review the provided guidelines carefully and confirm their agreement before proceeding.
At this stage, businesses are required to choose the correct entity type, whether natural person or legal person. This selection determines the structure of the registration form and the details that must be provided.
Step 5: Provide Entity and Business Details
Accurate information is essential at this stage of the registration process. Businesses must enter trade license details, legal structure, trade name, and registration number exactly as they appear on official documents.
Applicants are also required to list their business activities as mentioned on the trade license. Each activity is linked to a specific classification code, and incorrect selection can lead to compliance issues later.
Step 6: Review and Submit the Application
Before submitting the application, businesses should carefully review all the entered details to ensure accuracy and completeness. Any errors at this stage may result in delays or the need to restart the process.
Once reviewed, applicants must confirm the declaration and submit the application. A reference number will be generated, allowing businesses to track their application status. The Federal Tax Authority typically processes registrations within 20 business days and may request additional documents if necessary.
Step 7: Receive Your Tax Registration Number
After successful approval, the business will receive a Tax Registration Number. This number is essential for filing corporate tax returns, making payments, and communicating with the Federal Tax Authority.
For free zone companies, the Tax Registration Number also supports applications for Qualifying Free Zone Person status or Small Business Relief, where applicable. At this point, the business is officially registered under the UAE corporate tax system.
Post-Registration Compliance Requirements
Corporate tax registration is only the beginning of a business’s tax responsibilities. Ongoing compliance is critical to avoid penalties and audits.
Businesses must file their corporate tax return within nine months from the end of their financial year and settle any tax liabilities within the same timeframe. Maintaining accurate financial records for at least seven years is also mandatory. Many businesses choose to work with accounting professionals or tax consultants to manage these obligations effectively.
Registering for corporate tax in the UAE is now an essential requirement for businesses operating in the country. While the process is designed to be digital and straightforward, a clear understanding of each step is key to avoiding mistakes and penalties.
With the right preparation and professional support, businesses can remain compliant while focusing on growth and expansion.
For expert guidance on corporate tax registration and company setup in Dubai, Damaar Business Set Up Consultants provides reliable, end-to-end solutions tailored to your business needs.
