Corporate Tax Registration in UAE
Comprehending the complex UAE Corporate tax landscape seems like a daunting task. However, when you work with BTU Tax Consultant, you get a partner you can trust who is fully committed to helping you stay compliant.
The UAE has made a massive change to its economic strategy by putting in place a federal corporate tax. The goal is to diversify income and make taxes comparable to global standards. During this change, BTU Tax Consultant helps businesses with every step, from the initial registration to ongoing compliance. This way, you can be certain that you're compliant and avoiding any penalties.
What is the UAE's corporate tax?
The corporate tax in the UAE is a direct tax on the net profit of the country's businesses. A flat rate of 9% is charged on all taxable income over AED 375,000. It's part of the UAE's plan to become a well-known financial center around the world.
Corporate Tax was put in place by the Federal Tax Authority (FTA) and started to be used on June 1, 2023. Businesses on the mainland and in the Free Zone are both subject to this rule. However, qualifying Free Zone Persons (QFZPs) may get a 0% rate in some cases.
Following OECD rules, the goal of Corporate Tax is to bring in money and also encourage fair competition, openness, and international investment.
Who is Required to Register for Corporate Tax?
Entities Required to Register for UAE Corporate Tax
The Corporate Tax Law of the UAE gives a broad definition of "taxable persons." These are the main groups:
- Companies on the mainland and in free zones: Mainland businesses like LLCs, PJSCs, and other incorporated groups have to register, even if they don't have a high turnover or profit.
Even if a free zone company is eligible for the 0% rate on certain income, they still have to register. Registration makes sure they can get help and keeps them in line with the law.
Holding and special-purpose companies need to register even if they are dormant or minimal activity.
- You also have to sign up if you have a current UAE trade license.
Foreign Businesses That Are Taxable In UAE
If a foreign legal person has a financial presence in the UAE, they need to register:
- Setting up a permanent business (PE): A branch, office, spot, or agent that has a permanent presence.
- Management that works well in the UAE: A foreign company can be treated as a resident in places where important choices are made.
- Nexus through UAE real estate: Non-resident entities that earn UAE property revenue have a taxable nexus.
Foreign investors need to carefully check to see if their businesses in the UAE require them to be registered.
Individuals Exceeding the 1 million AED Threshold
Natural Persons who do business or business activities in the UAE are also subject to corporate tax obligations. This includes business, professional, and other actions that generate money that are done under a trade license or permit.
- When a business in the UAE makes more than AED 1 million in a year, it has to be registered.
- It applies to people who work as freelancers, sole proprietors, influencers, experts, and traders who have business licenses or permits.
- Income from jobs, personal dividends, savings, and most passive assets are not counted.
For example, a freelance expert who makes 1.2 million AED a year from their business needs to register. A sole seller making AED 800,000 a year doesn't have to register yet, but they should get ready to do so once the threshold is crossed.
Partnerships operating independently
The FTA has explicitly stated that individuals and groups operating independently must also register. Firms like law firms, accounting firms, and professional partnerships where partners split income are all included.
- Partnerships are registered as businesses, not as individuals.
- Partners still have to pay taxes on the partnership, even if the gains are split among them.
- Registration is needed unless a ministerial order says otherwise.
Corporate Tax For Large Multinationals in UAE
The UAE's Domestic Minimum Top-up Tax (DMTT), which was put in place by Cabinet Decision 142 of 2024, now applies to large multinational groups with global consolidated income above €750 million (≈ AED 3.15 billion). This is in line with the Pillar Two Global Anti-Base Erosion Model Rules from the OECD.
For tax years that begin on or after January 1, 2025, these rules will apply.
Important parts:
- If a business in the UAE has an effective tax rate less than 15%, the country will add a surcharge to it.
- The UAE doesn't follow the IIR or UTPR domestically; instead, it uses its own DMTT.
- Ministerial Decision 88 of 2025, made in April 2025, added OECD comments to UAE law, retroactive to January 1, 2025.
Big companies should already:
- Look at the group structures and transactions between companies
- Set up systems to collect data and streamline reporting mechanisms.
- Make sure that all of the UAE constituent entities are fully registered to pay their corporate taxes and DMTT.
Early alignment leads to a smoother transition, more trust with regulators, and a better situation as new rules become more established.
Documents Required for Corporate Tax Registration UAE
Make sure your business has all the necessary paperwork and systems in place before you start the UAE company tax registration process. Being ready makes sure that the application goes smoothly and helps you avoid fines or delays in processing.
Trade License: In order for your business to properly operate in the UAE, it must have a trade license that is still valid.
Records of finances: Make up up-to-date financial statements that show your income, costs, and profits. These will be used to figure out if you owe taxes and how much of your income is taxed.
Information about authorized signers: Identify the person or people who will handle tax issues for your business. If someone else is doing the filing, you may need to give them a Power of Attorney.
Emirates copies of your ID and passport Bring in valid forms of identification for any business owners, partners, or leaders.
Details on how to reach the business: These are your listed business address, phone number, and email address. All of these must be correct and up to date.
Clarification on entity type: Find out what kind of business structure you have (main land, free zone, branch, or foreign company) because it affects your eligibility, tax rates, and possible exemptions.
Status of VAT registration (if any): Make sure you have your Tax Registration Number (TRN) ready if you have already signed up for VAT. This will connect your tax accounts in the system of the Federal Tax Authority.
You can avoid delays or mistakes when you register your business for taxes once all of these things are in order.
How to Sign Up for UAE Corporate Tax
Step 1: Sign up for EmaraTax.
Go to https://tax.gov.ae/en/services/corporate.tax.registration.aspx to access the EmaraTax website. Use your email address and phone number, or your UAE Pass, to sign up.
Step 2: Add person subject to tax
You'll see a screen with a list of Taxable Persons tied to your profile after you log in. If there are no Taxable Persons already listed, you can make a new one by giving it a formal name, a trade name, a license number, and information about its legal structure.
Step 3: Start the process of registering for corporate tax
Go to the dashboard and find the Corporate Tax area. Then, click "Register." Follow the steps and rules shown on the screen.
Step 4: Give information about the entity
Fill out the application form online and give detailed details about your business, such as:
- Details about the entity (its name, legal framework, and trade license)
- Information about who you are (copies of your business license and passport)
- Activities that businesses do
- Contact Information about owners or shareholders
- Details of the authorized signature
Step 5: Recheck and send
Carefully check that all the information you entered is correct. Declare that the information given is correct and full.
Step 6: Get a Tax Registration Number (TRN).
Send in the Corporate Tax Registration application. After you are registered, you will get a TRN, which is necessary for tax purposes.
For the most precise and up-to-date information, we strongly suggest that you talk to the UAE tax experts at BTU Consultants; they can guide you throughout the process.
Why Should You Choose BTU Tax Consultants?
- Help from Experts: Our staff members know a lot about the tax laws and rules in the UAE. We keep up with the latest changes so that we can give you correct and timely help.
- Solutions That Fit Your Needs: We know that every business is different. Our services can be changed to fit the needs of your business, which makes the registration process go smoothly.
- Complete Support: We provide full help from the first consultation to the final registration. Our staff will help you get the paperwork you need, fill out forms, and send in applications.
- Streamlined Process: We want to make your routine work as easy as possible. Our quick processes are meant to free up your time and resources so you can focus on what you do best: running your business.
- Ongoing Compliance: Registering a business for taxes is only the beginning. We offer ongoing support to help you stay in line with your tax responsibilities. For example, we file your tax returns and handle audits.
Our Services
- Initial Consultation: We look at how your business is set up and give you advice on how to best register for taxes.
- Getting the papers Ready: Our team will help you get all the papers you need for registration and get them ready.
- Sending the Application: We send your application to the right authorities and make sure it is correct and full.
- Follow-up: We keep an eye on your application's progress and talk to the officials on your behalf.
- Support After Registration: Once you're registered, we'll continue to help you with compliance and reporting needs.
Get Help From Corporate Tax Consultants
The first step is to determine who needs to register for company tax. The next step is to verify that your application is correct, that your licenses are in order, and that all of your deadlines have been met.
Our FTA-certified experts have helped several small and medium-sized businesses in the UAE follow the rules. When it comes to company tax registration and filing, we help mainland businesses, free zone businesses, partnerships, foreign investors, and individuals at every step of the way.
Start your Corporate Tax Registration Process Today! Get in touch with us to set up a free consultation.
Frequently Asked Questions (FAQs)
Do all companies in the UAE have to sign up for corporate tax?
Most companies in the UAE have to sign up for corporate tax. No matter how much profit a company makes, it has to register. People in the UAE who make more than AED 1 million from their business must register. Partnerships, multinationals, and exempt entities are also usually needed to register unless they are specifically exempt.
Do companies that are dormant need to register?
Yes, unless it is liquidated and taken off the record (deregistered).
Do small companies that make less than AED 375,000 a year have to register?
Yes. Taxes are affected by profit limits, but not registration.
Are charities needed to get a TRN?
Most charities have to sign up and then ask to be excused.
Do teams that work on their own register?
Yes. Partnerships are taxed as individuals unless they are specifically exempt.
Can people voluntarily sign up for less than AED 1 million?
Yes, to build trust, get investors ready, and make progress go more smoothly.
Does registering a business mean that it has to pay taxes?
Not at all. Reliefs, exemptions, and limits may lower your responsibility, but you still need to file.
What will happen if I file on time even though I registered late?
The FTA can fine people a set AED 10,000 for registering late, even if they file on time.
Should a joint company have its own registration?
Yes, unless it is set up as a part of a business that is already listed.
What will happen if my business shuts down?
Once all of your obligations have been met, use EmaraTax to ask to be deregistered.