Dubai — as part of the United Arab Emirates — introduced its first federal corporate tax regime under Federal Decree-Law No. 47 of 2022, which took effect for financial years starting on or after June 1, 2023. Under this system, most businesses, whether located on the mainland or in free zones, must register for corporate tax with the Federal Tax Authority (FTA) and meet ongoing compliance obligations.
Registering corporate tax is now a mandatory step in doing business in the UAE — and failure to do so on time can lead to penalties. This article explains in detail who needs to register, how to register, deadlines, required documents, and practical tips for businesses in Dubai.
Who Must Register for Corporate Tax in Dubai?
Under UAE law:
1. All Legal Entities
All companies incorporated in Dubai — including LLCs, free zone companies, branches of foreign companies, partnerships, and other juridical persons — are required to register with the FTA for corporate tax.
2. Natural Persons Conducting Business
Individuals carrying out business activities in the UAE must register for corporate tax if they meet certain revenue thresholds — generally if annual gross revenue exceeds AED 1 million.
3. Free Zone Entities
Free zone companies must also register even if they may qualify for a 0% tax rate on qualifying income. Registration ensures compliance regardless of whether tax is ultimately payable.
Even if a business has no taxable income (e.g., it operates at a loss or earns below the threshold), registration is still required — it is not optional.
Why Timely Registration Matters
Timely registration protects your company from administrative penalties. The FTA may impose a fine of AED 10,000 for late registration, even if no tax is due.
Beyond financial penalties, late or incorrect registration can lead to operational delays, banking compliance issues, and difficulties in filing corporate tax returns.
Step-by-Step Guide: How to Register for Corporate Tax in Dubai
Step 1: Prepare Your Documents
Before starting, make sure you have all necessary information and documents scanned and ready in PDF or Word format (typically up to 5MB per file). For example:
- Trade License of the company
- Certificate of Incorporation / Establishment
- Memorandum & Articles of Association (MoA/AoA)
- Passport and Emirates ID copies of owners or authorized signatories
- Power of Attorney for authorized representatives
- Company contact details and business address
- Financial year end details
For individuals registering as natural persons, Emirates ID or passport and business details are required.
Step 2: Create or Access Your EmaraTax Account
Corporate tax registration must be completed online via the official EmaraTax portal (the FTA’s digital tax platform). Registration is free and accessible 24/7.
- If your business is already registered for VAT or Excise Tax, you can use the existing login credentials.
- If not, you will need to create a new user profile using your email address and UAE mobile number.
You can log in directly or use UAE Pass for secure authentication.
Step 3: Start the Registration Application
Once logged in:
- Select your tax profile — natural person or juridical entity.
- Choose the option “Register for Corporate Tax” from the list of available services.
- Enter your business details, including legal name, license number, activities, and financial year end.
- Upload all required documents.
- Provide details for owners/shareholders and authorized signatories.
Before submitting, carefully check all data to avoid mistakes that could delay approval.
Step 4: Submit and Track Your Application
After submission:
- The FTA reviews your application and may request additional information within a designated window.
- A typical processing time is around 20 business days, though this may vary if the FTA requests more information.
- Once approved, the FTA issues your Corporate Tax Registration Number (CTRN), which is essential for future corporate tax filings.
Key Deadlines for Corporate Tax Registration
Dubai businesses must generally register within specific timelines:
1. New Companies
Newly incorporated entities must register within three months from the date of license issuance.
2. Existing Businesses
Deadlines for existing businesses were phased in based on license issuance dates, typically within months tied to financial year ends. However, most established companies should already have completed registration.
3. Natural Persons
Individuals must register by March 31, 2025, for the 2024 corporate tax period if they meet the criteria.
Missing deadlines can lead to fines unless specific relief measures apply.
After Registration: What’s Next?
Once registered, companies are required to:
- Maintain proper accounting records (e.g., ledgers, balance sheets, P&L).
- File corporate tax returns annually within 9 months after the end of the financial year.
- Pay any taxes due alongside or following your tax return submission.
Practical Tips for Smooth Registration
✅ Start early: Don’t wait for the deadline — starting early avoids mistakes and penalties.
✅ Keep documents updated: Expired or mismatched documents are a common reason for delays.
✅ Use UAE Pass: It simplifies login and enhances security.
✅ Seek professional help: Tax consultants and chartered accountants can guide you, especially if you operate across free zones or have complex ownership structures.
✅ Stay compliant: Even if your income qualifies for a 0% rate, registration and annual filings are required.
Conclusion
Registering corporate tax in Dubai is a mandatory legal requirement for most businesses and individuals conducting commercial activities. Though the process is fully digital and free via the EmaraTax portal, an accurate and complete application is key to avoiding penalties and ensuring timely compliance.
With the right preparation, understanding of deadlines, and organizational discipline, corporate tax registration becomes a manageable part of your business operations — safeguarding your company’s legal standing and financial integrity in Dubai’s dynamic economic environment.