New UAE company? Register for Corporate Tax within three months

Many founders assume Corporate Tax only matters once the business makes a profit. It does not work that way. Every UAE company must register for Corporate Tax, whatever its revenue, and the deadline for new companies is short.

The deadline

Under Federal Tax Authority Decision No. 3 of 2024, a company incorporated or established in the UAE on or after 1 March 2024 must register for Corporate Tax within three months of its incorporation or establishment date. This applies to mainland and free zone companies alike.

A company set up under foreign law but effectively managed and controlled in the UAE has a different clock: three months from the end of its financial year.

The penalty

Registering late carries an administrative penalty of AED 10,000. For a new business that is often more than a year of accounting fees, and it is entirely avoidable.

What you need to register

• Your trade licence
• Passport and Emirates ID of the owners and authorised signatory
• Memorandum or articles of association
• Proof of authorisation for the person registering
• Contact details and address of the business

Registration is completed online through the Federal Tax Authority's EmaraTax platform. Once approved, you receive a Tax Registration Number.

After registration

Registration is only the start. You will need to keep proper accounting records from day one, file a Corporate Tax return within nine months of the end of each tax period, and decide whether reliefs such as Small Business Relief apply to you. Corporate Tax records must be kept for at least seven years.

How NAMAA can help

When we help you set up your company, Corporate Tax registration is part of the plan, so the three-month deadline is never missed. We then keep your books in order so your first return is straightforward.