The United Arab Emirates (UAE) has experienced significant growth to become one of the world’s most attractive business destinations, boasting a conducive regulatory framework, a strategic location, and tax benefits. Nevertheless, with the introduction of the new corporate tax regime, all businesses operating in the UAE are required to comply with the country’s tax registration laws. Companies must understand business tax registration laws to operate within the law and avoid penalties. This step-by-step guide will walk entrepreneurs and business owners through what is essential when registering for taxes in the UAE, with a particular emphasis on Corporate Tax Registration. For those who need professional help, Maydor Advisory provides one-stop solutions to manage this process effectively.

Introduction to Business Tax in the UAE

Historically, the UAE has enjoyed a reputation for being tax-free, which has attracted investors and multinational companies. In line with global standards, however, the UAE introduced the Value Added Tax (VAT) in 2018 and the more recent federal corporate tax, which took effect from June 2023. This translates to the fact that businesses must now adhere to two primary tax registration requirements:

VAT Registration (if applicable)

Corporate Tax Registration in UAE

Corporate Tax Registration in UAE

These advances aim to enhance fiscal transparency, broaden government revenue, and align with global tax compliance standards established by organizations such as the OECD.

Step 1: Establish Tax Applicability

Before commencing the registration process, companies must determine whether they are required to register for VAT and corporate tax.

VAT: Companies with taxable supplies and imports exceeding AED 375,000 per year are required to register for VAT.

Corporate Tax: Corporate tax applies to firms with a net profit exceeding AED 375,000 per year, at a general rate of 9%.

Note: Special rules and exemptions apply for free zone entities under the “Qualifying Free Zone Person” criteria.

Step 2: Set Up a Valid Business Entity

To register for tax, a business must be legally registered and hold an active trade license issued by a relevant UAE authority, whether on the mainland or in a free zone. This includes:

  • Sole proprietorships
  • Partnerships
  • Limited liability companies (LLCs)
  • Foreign branch offices

Ensure that your entity’s legal structure and activities are compliant with UAE laws, as this will impact your eligibility and tax obligations.

Step 3: Create an Account with the Federal Tax Authority (FTA)

All tax filing and registration operations are handled via the Federal Tax Authority (FTA) portal. To begin:

  1. Go to the FTA website (www.tax.gov.ae).
  2. Use your business’s email address to create a new account.
  3. Fill in simple business details, such as trade license, Emirates ID/passport of the authorized signatory, and contact information.

After you create your account, you can go ahead with the respective tax registration procedures.

Step 4: Corporate Tax Registration in UAE

With the introduction of corporate tax, companies are required to register, regardless of whether they meet the AED 375,000 profit threshold. This ensures that the FTA has a complete list of companies and can calculate tax dues accordingly.

To register:

  1. Log in to the FTA portal.
  2. Choose Corporate Tax Registration.
  3. Submit documents required:
  • Valid trade license
  • Owners/partners’ passports and Emirates ID
  • Details of business activities
  • Financial statements (if they exist)
  1. Wait for FTA review and approval.
  2. Get your Tax Registration Number (TRN) for business tax.

Failure to register will incur administrative charges, even if your business does not initially have any tax liability.

Step 5: VAT Registration (If required)

If your business qualifies for the VAT threshold:

  1. Sign in to your FTA account.
  2. Select VAT Registration.
  3. Enter detailed information about the operations of your business, expected revenues, imports/exports, and contact details.
  4. Upload supporting documents like trade license, contracts, and utility bills.
  5. Get your VAT TRN after approval.

File your VAT returns quarterly or monthly, depending on your tax period.

Step 6: Keep Proper Financial Records

Tax compliance in the UAE requires businesses to maintain proper and accurate accounting records for a minimum of five years. These records can include:

  • Sales and purchase invoices
  • Bank statements
  • General ledgers
  • Payroll and employee records
  • Contracts and agreements

Inability to maintain proper records may result in penalties during FTA audits.

Step 7: Hire a Tax Agent (Optional but Recommended)

Although not required, hiring a registered tax agent can make compliance easier. A tax agent assists with:

  • Filling out returns
  • Advising on legal requirements
  • Representing your business in interactions with the FTA
  • Ensuring timely registration and renewals

Maydor Advisory, with its experienced team of UAE tax consultants, offers comprehensive tax registration and compliance services to help businesses navigate this evolving tax landscape.

Step 8: Keep Up with Changes in Tax Legislation

UAE tax laws continue to develop, particularly since the introduction of corporate tax. Companies need to keep up with:

  • Tax threshold adjustments
  • Return and payment due dates
  • Clarification of exemptions or special zones
  • FTA administration guidelines

Failing to keep up with new developments may result in legal problems or fines.

Keep Up with Changes in Tax Legislation

Conclusion: Keep Tax Compliance Your Business Priority

Knowing and completing your tax registration requirement in the UAE is no longer a choice—it’s an essential legal mandate for every enterprise doing business in the country. From determining eligibility and preparing documents to filing applications through the FTA portal, Corporate Tax Registration in UAE requires precision and time sensitivity.

Given the complexities involved, it is advisable to collaborate with a reliable advisory company to save time, mitigate risks, and ensure long-term compliance. Maydor Advisory provides a comprehensive range of corporate tax and VAT registration services, guiding you through each step from establishment to filing and offering post-registration support.

Whether you are a start-up or a multinational business based in the UAE, the time to take action is now. Get your tax affairs in order and register your company with the FTA today with expert assistance from Maydor Advisory.