Corporate Tax (CT) Registration in the UAE: A Complete Guide

Introduction to Corporate Tax in the UAE

The UAE introduced Corporate Tax (CT) effective June 1, 2023, as part of its economic reforms and alignment with global tax standards. The tax is administered by the Federal Tax Authority (FTA) and applies to companies, businesses, and certain individuals conducting business activities in the UAE.

In this guide, we will cover:

✔️ Who needs to register for Corporate Tax?
✔️ Mandatory vs. voluntary registration
✔️ Step-by-step process of CT registration
✔️ Documents required for registration
✔️ Consequences of non-compliance

Who Needs to Register for Corporate Tax in the UAE?

All businesses subject to UAE Corporate Tax must register with the Federal Tax Authority (FTA) and obtain a Corporate Tax Registration Number (TRN).

Mandatory Registration

Businesses that are required to register include:

✅ UAE-incorporated companies (LLCs, PJSCs, PSCs, etc.)
✅ Foreign companies with a Permanent Establishment (PE) in the UAE
✅ Individuals conducting business under a commercial license
✅ Entities in Free Zones (except those eligible for 0% CT under Free Zone Tax Rules)
✅ Partnerships and joint ventures conducting business in the UAE

Exempt Entities (Not Required to Register for CT)

Some entities are exempt from Corporate Tax and may not need to register:
🚫 Government entities
🚫 Wholly government-owned companies carrying out sovereign functions
🚫 Qualifying Public Benefit Organizations (Non-Profits, Charities)
🚫 Pension and investment funds
🚫 Businesses engaged in natural resource extraction (subject to Emirate-level taxation)

✅ Even if exempt, some entities may still be required to apply for a Corporate Tax Exemption Certificate from the FTA.

Corporate Tax Registration Process in the UAE

The Corporate Tax registration process is entirely online via the FTA e-Services portal.

Step-by-Step Registration Process:

🔹 Step 1: Create an FTA e-Services Account

Visit the FTA website and sign up for an account.
Provide a valid email ID and phone number.

🔹 Step 2: Select “Corporate Tax Registration”

🔹 Step 3: Fill in Business Details

Enter key business details, including:
✔️ Legal Name of the Business
✔️ Trade License Number
✔️ Nature of Business Activities
✔️ Company Structure (LLC, Sole Proprietorship, Partnership, etc.)

🔹 Step 4: Upload Required Documents

Submit all necessary documents (listed below).

🔹 Step 5: Review and Submit Application

Ensure all details are correct and submit the application for FTA review.

🔹 Step 6: Receive Corporate Tax Registration Number (TRN)

Once approved, the FTA issues a Corporate Tax Registration Number (TRN).

Documents Required for Corporate Tax Registration

Businesses must submit the following documents during the registration process:

✅ Trade License (copy)
✅ Certificate of Incorporation or Business Registration
✅ Memorandum of Association (MOA) & Articles of Association (AOA)
✅ Passport copy of Business Owners/Partners
✅ Emirates ID of Business Owners/Partners
✅ Tax Residency Certificate (if applicable)
✅ Financial Statements or Revenue Proof
✅ Company Bank Account Details (IBAN, Bank Statement)
✅ Customs Registration Details (if applicable for import/export businesses)
✅ Details of Parent Company (if applicable)

Corporate Tax Compliance After Registration

Once registered for Corporate Tax, businesses must comply with ongoing obligations:

✔️ Maintain Proper Accounting Records – Businesses must prepare and retain financial statements for at least 7 years.
✔️ File Annual Corporate Tax Returns – Returns must be submitted within 9 months after the financial year-end.
✔️ Pay Corporate Tax on Time – Any tax liabilities must be paid before the due date to avoid penalties.
✔️ Issue Tax-Compliant Invoices – Businesses must maintain tax records for transparency.

Consequences of Non-Compliance with CT Registration

Failure to register for Corporate Tax when required can result in FTA-imposed penalties.

Violation	Penalty
Failure to register for Corporate Tax	AED 10,000
Late filing of Corporate Tax return	AED 1,000 (first offense), AED 2,000 (repeat offense)
Failure to maintain proper records	AED 10,000 – AED 50,000
Late Corporate Tax payment	14% per annum on unpaid tax

How Accuvat Chartered Accountants Can Help

Corporate Tax registration and compliance require expert guidance to avoid penalties and ensure efficient tax planning. Accuvat Chartered Accountants provides:

✔️ Corporate Tax Registration Assistance
✔️ Corporate Tax Compliance & Filing
✔️ Corporate Tax Advisory & Planning
✔️ FTA Audit Assistance