Corporate Tax Registration In UAE: A Step-by-Step Process for Businesses

With the introduction of Federal Decree-Law No. 47 of 2022, which establishes the UAE's corporate tax framework, businesses operating in the region must comply with the corporate tax registration in the UAE process to ensure tax compliance and avoid penalties. Whether you're a new startup, an established enterprise, or a non-resident entity conducting business within the UAE, understanding the corporate tax registration process is essential to avoid unnecessary fines and legal complications.

In this comprehensive guide, we’ll walk you through the step-by-step process of UAE corporate tax registration, outline key deadlines, and explain the requirements necessary to ensure your business complies with the Federal Tax Authority (FTA). Businesses are required to register for UAE corporate tax to comply with federal corporate tax regulations and submit the filing of corporate tax returns accurately.

The applicable tax and corporate tax rate will depend on your business type and activities. It is important to complete your registration and submit the form with your business details to the tax authority and Abu Dhabi or the Federal Tax Authority to ensure compliance. Failure to comply with the registration process can result in fines and penalties. The UAE pass for tax compliance allows businesses to access relevant tax standards, with minimum tax obligations being applicable to certain businesses.

At Young & Right, our corporate tax advisors provide expert guidance to ensure that your business is compliant with corporate tax laws. We help you navigate the different tax rate structures, make sure you apply for corporate tax registration on time, and ensure your business meets the requirements set by the UAE tax system.

What is UAE Corporate Tax Registration ?

UAE Corporate Tax Registration is a mandatory process where businesses must register with the Federal Tax Authority (FTA) to obtain a Tax Registration Number (TRN). This applies to taxable persons, including companies, sole proprietors, and non-resident entities conducting taxable activities in the UAE.

The introduction of corporate tax in the UAE effective from June 2023, aligns the country with global standards. Corporate tax registration in the UAE is mandatory for businesses to comply with the UAE CT regime and ensure proper tax filing. Businesses must meet deadlines for corporate tax registration to avoid penalties and tax liabilities.

Once registered, companies must comply with the corporate tax rate and file corporate tax returns accurately to avoid penalties in the UAE. At Young & Right, we provide expert corporate tax compliance services, helping businesses navigate the registration process and stay compliant with all UAE tax regulations.

 How to Register for Corporate Tax UAE

To register for corporate tax in the UAE, businesses must create an account on the EmaraTax portal, managed by the Federal Tax Authority (FTA). After creating an account, businesses need to complete the corporate tax registration form, providing details such as business name, trade license information, taxable activities, and ownership structure. Once the form is submitted with the required documents, the FTA will process the application, and businesses will receive their Tax Registration Number (TRN). Corporate tax registration is mandatory for all taxable persons, including companies, sole proprietors, and businesses in the UAE. This ensures compliance with corporate tax regulations introduced by the UAE government. The registration guide outlines all the steps required to apply, and businesses in the UAE must adhere to these regulations to avoid penalties.

Why is UAE Corporate Tax Registration Important?

The UAE corporate tax registration process is vital for businesses to remain compliant with the law and avoid penalties. Here’s why it’s important:

• Legal Compliance: Compliance with the UAE corporate tax law is essential to avoid fines and legal complications.

• Timely Tax Filing: A TRN is required to file accurate corporate tax returns and make tax payments on time.

• Business Legitimacy: Registering for corporate tax not only meets tax regulations but also enhances the legitimacy and credibility of your business within the UAE’s tax system.

• Avoid Penalties: Non-compliance can result in penalties, including an AED 10,000 fine for failing to submit the corporate tax registration application within the stipulated deadlines.

 Corporate tax in uae registration penalty waiver

The UAE Corporate Tax Registration penalty waiver allows businesses that missed the initial registration deadline to avoid the AED 10,000 penalty for late registration, provided they submit their corporate tax return within seven months from the end of their first tax period. The waiver applies to all taxable persons and exempt entities who meet the filing requirement. If the penalty has already been paid, businesses can apply for a refund through the EmaraTax portal. The waiver is applicable under corporate tax in UAE and is a one-time relief for the first tax period. The relief was introduced by the Federal Tax Authority and Abu Dhabi to help businesses comply with the corporation tax regulations. However, the waiver is only available for the first tax period and is a one-time relief under the new rules UAE introduced.

 Documents required for UAE Corporate Tax registration

To complete UAE Corporate Tax registration, businesses must provide the following required documents:

• Trade License (for UAE-based businesses)

• Proof of Business Activities (to confirm taxable activities)

• Financial Statements (if applicable)

• Ownership Structure and Shareholder Details

• Passport Copies of owners (if applicable)

• Business Address Proof (e.g., tenancy agreement or office proof)

For non-resident entities, additional documents related to Permanent Establishment (PE) or nexus in the UAE may also be required.

Step-by-Step Process for UAE Corporate Tax Registration

Below is a step-by-step guide to help businesses navigate the UAE corporate tax registration process:

Step 1: Check Eligibility for Corporate Tax Registration

Before beginning the registration, you must determine if your business is subject to corporate tax in the UAE. The businesses that need to register include:

• Resident Juridical Persons (UAE-based companies)

• Non-resident Juridical Persons with a Permanent Establishment (PE) or nexus in the UAE

• Natural Persons (individuals conducting business with turnover exceeding AED 1 million annually)

• Free Zone Companies with taxable activities outside their Free Zone or exceeding the specified revenue thresholds

Exemptions: Certain government entities and businesses that qualify for exemptions under Free Zone rules may be exempt from registration.

Step 2: Gather Required Documents

To complete the UAE corporate tax registration process, businesses must gather the following documents:

• Trade License (for UAE-based businesses)

• Proof of Business Activities (to confirm taxable activities)

• Financial Statements (if applicable)

• Ownership Structure and Shareholder Details

• Passport Copies of the owners (if applicable)

• Business Address Proof (e.g., tenancy agreement or office proof)

For non-resident entities, additional documents related to the Permanent Establishment (PE) or nexus in the UAE may be required.

Step 3: Create an Account on the EmaraTax Portal

The corporate tax registration process is conducted online through the EmaraTax portal, managed by the Federal Tax Authority (FTA). To start the process:

1. Visit the EmaraTax Portal: Go to EmaraTax.

2. Click on Register: Create a new account by clicking the “Register” button.

3. Enter Required Information: Provide details like business name, contact information, and entity type.

4. Complete Verification: Verify your account via email or phone number.

Once the account is created, businesses can access the registration dashboard.

Step 4: Complete the Corporate Tax Registration Form

Once your account is set up, you will need to fill out the corporate tax registration form. This form will require the following key details:

• Business Name and Trade License Information: Official business name and trade license issued by UAE authorities.

• Taxable Activities: A description of activities subject to corporate tax.

• Financial Year Information: Provide details of the fiscal year and financial data.

• Ownership Structure: Information on shareholders, beneficial owners, and partners.

• Employee Count and Annual Turnover: Required for businesses conducting taxable activities.

• Entity Type: Specify if you are a mainland business, Free Zone company, or a non-resident entity with a Permanent Establishment (PE).

Step 5: Submit Your Registration Application

After filling out all required information and uploading the necessary documents, review your registration for accuracy. Once confirmed, submit your corporate tax registration application via the EmaraTax portal.

Step 6: Wait for Approval and Receive Your Tax Registration Number (TRN)

After submission, the FTA will process your application, which usually takes a few business days. Once your application is approved, you will receive your Tax Registration Number (TRN), which you’ll use for:

• Filing corporate tax returns

• Making tax payments

• Complying with UAE corporate tax regulations

Important Deadlines for UAE Corporate Tax Registration

It is crucial for businesses to meet the following deadlines for UAE corporate tax registration to avoid penalties:

• For entities established before 1 March 2024: Register by 31 May 2024.

• For new entities: Registration must be completed within 3 months of licence issuance.

• For non-resident entities with PE: Register within 9 months from the date of PE establishment.

• For non-resident entities with nexus: Register by 31 May 2024, or within 3 months from establishing nexus.

Failure to register on time will incur a penalty of AED 10,000 under Cabinet Decision No. 75 of 2023.

Post-Registration Requirements

Once registered, businesses must comply with the following corporate tax obligations:

• File Annual Tax Returns: Businesses are required to submit tax returns annually based on their taxable income.

• Maintain Financial Records: Accurate financial records must be kept for auditing purposes.

• Adhere to Filing Deadlines: Ensure timely submission of tax returns and payments to avoid penalties.

How Young & Right Help You with UAE Corporate Tax Registration

At Young & Right, we simplify the UAE corporate tax registration process and ensure your business stays compliant with all tax regulations. Here's how we can help:

Expert Guidance

We guide you through the registration process in the UAE, from obtaining your corporate tax registration number (TRN) to submitting your CT registration application accurately and on time.

Document Preparation

We assist with gathering and submitting all documents required for corporate tax registration, ensuring compliance with UAE corporate tax requirements.

Tax Compliance & Deadlines

We help track tax deadlines and ensure timely registration to avoid administrative penalties for late registration.

Maximizing Tax Benefits

We advise on tax incentives, help minimize tax liabilities, and ensure compliance with the UAE’s corporate tax regime.

Filing & Representation

We support you with corporate tax filing, tax payments, and act as your representative before the Federal Tax Authority (FTA).

At Young & Right, we ensure your business complies with UAE corporate tax laws and avoids penalties, helping you focus on growth.

Conclusion

UAE corporate tax registration is a vital step for all businesses operating in the UAE. Completing the corporate tax registration in the UAE process accurately and on time ensures compliance with the UAE’s corporate tax regime and avoids administrative penalties. It is required to register with the Federal Tax Authority (FTA) and obtain your corporate tax registration number (TRN) to stay compliant with the latest tax regulations. This process also helps your business understand its tax liabilities, including the tax rate applicable to your entity, whether you're operating in mainland UAE or a Free Zone.

At Young & Right, we provide comprehensive corporate tax consultancy services to guide you through the EmaraTax platform for corporate tax registration. We help ensure your business stays compliant with the new UAE corporate tax framework introduced by the Ministry of Finance. Our team also offers expert advice on corporate tax filing, understanding tax incentives, and managing tax deadlines to avoid late registration penalties and ensure you meet the relevant tax period.

Whether you're a UAE branch, non-resident, or operating a corporation in the UAE, we assist in obtaining a corporate tax registration number and provide detailed support for all documents required for corporate tax registration. This includes ensuring your business complies with harmful tax practices, direct tax, and the standards for tax transparency set out by the UAE authorities. Qualifying Free Zone persons can also benefit from our services to navigate the unique requirements for these types of entities.

Contact us today to get professional assistance with your corporate tax registration and ensure your business complies with the UAE’s corporate tax regulations, tax penalties, and tax filing requirements. With Young & Right, you can rest assured your business will comply with all regulatory requirements and avoid unnecessary fines and complications.