Corporate Tax in the UAE is no longer optional. Starting from 2024, all LLC companies must register for UAE Corporate Tax within 1 month of starting business operations—or face a monthly penalty of AED 10,000.
Many business owners are unaware of this new legal requirement. If you’re a company owner or entrepreneur in the UAE, this guide is essential to protect your business from heavy fines.
Let’s walk you through who must register, when, exemptions, and how to complete the process step-by-step.
Who Must Register for UAE Corporate Tax?
According to the UAE Federal Tax Authority (FTA):
Mandatory Registration Applies to:
- LLC Companies (Limited Liability Companies)
- Must register within 1 month of the license issue/start of business
- Failure results in AED 10,000/month penalty
Establishment Companies (Sole Proprietors):
- Registration is only required when annual turnover exceeds AED 1 million
VAT Thresholds (Reminder):
- Voluntary VAT registration: AED 187,500/year
- Mandatory VAT registration: AED 375,000/year
Key Deadlines and Penalties
| Company Type | Registration Deadline | Penalty if Missed |
|---|---|---|
| LLC Companies | Within 1 month of license | AED 10,000/month |
| Establishment | When turnover > AED 1M | None if under limit |
🔍 Tip: Even if you’re not earning yet, you must register if you’re a registered LLC.
How to Register for Corporate Tax in UAE (Step-by-Step)
Registering for corporate tax is simple but crucial. Follow these steps:
1. Create an EmaraTax Account
- Visit: https://tax.gov.ae
- Sign up using your UAE PASS or email.
2. Login and Go to Corporate Tax Section
- Select “Corporate Tax” under available services.
3. Prepare Your Documents
You’ll need:
- Trade license
- MOA (for LLCs)
- Passport & Emirates ID (owner/partners)
- Financial details (turnover, expenses)
- Company Email and Phone Number.
4. Fill in the Corporate Tax Registration Form
- Business type, income details, ownership info
- Upload supporting documents
5. Submit and Wait for TRN (Tax Registration Number)
- Usually issued within 5–7 working days
Expert Insights: Why This Matters
- FTA Enforcement is Real: Businesses across Dubai, Abu Dhabi, and Sharjah have already received fines.
- Compliance Builds Trust: Registered companies are taken more seriously by banks, clients, and investors.
- Avoid Business Disruptions: Unregistered companies may face issues in visa renewals, tenders, or account audits.
🗣️ “Don’t wait for a notice—once the deadline passes, the fines start adding up monthly,” says Samser Muthu Muttath, UAE business advisor.
FAQ – UAE Corporate Tax Registration
❓Do I need to register if my company is not making profit yet?
Yes, if you’re an LLC, you must register regardless of profit.
❓Is there any exemption for free zone companies?
Some Free Zone companies may qualify for 0% tax but must still register.
❓What happens if I miss the deadline?
A AED 10,000 fine is imposed per month of non-compliance.
❓Is this the same as VAT registration?
No. Corporate tax is different from VAT and has separate requirements.
Conclusion: Stay Compliant, Avoid Penalties
UAE is serious about tax compliance, and ignorance is not an excuse. Registering for Corporate Tax is now a legal obligation, and the consequences of missing the deadline are costly.
Whether you’re running an LLC or a sole establishment, it’s time to check your turnover, know your deadlines, and act fast.
Need help with Corporate Tax or VAT Registration?
Our expert team at Harf Typing and Documents Clearing can handle it for you — quickly and hassle-free.
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