Every company and other juridical person subject to UAE corporate tax must register with the Federal Tax Authority (FTA), including free zone companies. Individuals must register if their business turnover is over AED 1 million in a calendar year. Some non-residents must register too. Registration is free, and late registration carries a penalty of AED 10,000.
Who Must Register: Quick Answer
| Who | Must register? |
|---|---|
| UAE companies and other juridical persons | Yes |
| Free zone companies (including those on the 0% rate) | Yes |
| Individuals with business turnover over AED 1 million a year | Yes |
| Non-resident companies with a permanent establishment or nexus in the UAE | Yes |
| Non-resident companies with only UAE-sourced income | No |
| Exempt persons (such as government entities) | Only if the FTA asks |
| UAE branches of a UAE company | No, the company registers |
Source: Ministry of Finance | FTA
Companies and Free Zone Persons
UAE companies and other juridical persons incorporated or effectively managed and controlled in the UAE are subject to corporate tax. The Ministry of Finance says all taxable persons, including free zone persons, must register and get a corporate tax registration number.
A free zone company that qualifies for the 0% rate on its qualifying income still has to register. See our free zone corporate tax guide.
Source: Ministry of Finance
Individuals (Natural Persons)
An individual who runs a business in the UAE, for example as a sole proprietor or partner, must register if their business turnover is over AED 1 million in a calendar year. The FTA says salary, personal investment income and real estate investment income don't count towards this amount.
The FTA's deadline is 31 March of the year after the one in which turnover first went over AED 1 million. For freelancers, see our corporate tax guide for freelancers and sole establishments.
Non-Residents
A foreign company must register if it has a permanent establishment in the UAE, or a nexus such as income from UAE land or buildings. A foreign company that only earns UAE-sourced income, without a permanent establishment or nexus, doesn't need to register.
A non-resident individual must register if their turnover from a UAE permanent establishment is over AED 1 million in a calendar year.
Source: FTA
Exempt Persons
The Ministry of Finance lists these exempt persons:
- Government entities and government-controlled entities named in a Cabinet Decision
- Extractive and non-extractive natural resource businesses, if they notify the Ministry and meet the conditions
- Qualifying public benefit entities listed in a Cabinet Decision
- Pension and social security funds, qualifying investment funds, and certain wholly owned subsidiaries, if approved by the FTA
The FTA can ask some exempt persons to register.
Source: Ministry of Finance
How to Register (EmaraTax)
- Log in to EmaraTax with UAE PASS and create a taxable person profile.
- Under Corporate Tax, choose Register and fill in the application.
- Upload your trade licence, incorporation documents, and the Emirates ID and passport of owners with more than 25% and of authorised signatories.
- Submit. The FTA says the form takes about 25 minutes, and it processes a complete application in up to 20 business days.
Registration is free.
Source: FTA
Deadlines and Penalty
Companies must register by the deadline set in FTA Decision No. 3 of 2024. See our corporate tax registration deadline guide.
Late registration carries an administrative penalty of AED 10,000. Under the FTA's Late Registration Penalty Waiver Initiative, the penalty is waived if the first tax return is filed within 7 months of the end of the first tax period. Penalties already paid are credited back.
Source: FTA
Frequently Asked Questions
Do free zone companies need to register for corporate tax?
Yes. The Ministry of Finance says all taxable persons, including free zone persons, must register, even if they qualify for the 0% rate.
Do individuals need to register for corporate tax in the UAE?
Only if they run a business with turnover over AED 1 million in a calendar year. Salary and personal investment income don't count.
Is corporate tax registration free?
Yes. The FTA doesn't charge for registration.
What is the penalty for not registering?
AED 10,000, but it can be waived if the first tax return is filed within 7 months of the end of the first tax period.
Does a branch need its own registration?
No. A UAE branch of a UAE company isn't a separate legal entity, so the company registers.
Note: This article provides general information only and is not tax advice. Confirm the current requirements with the Federal Tax Authority or a qualified tax professional.