First steps after company registration
Straight after company registration in the UAE, close out the basics: open a corporate bank account, process visas for the founder and staff, register the office lease (through Ejari on the Dubai mainland, or under the free zone's rules) and check that the details on the licence, MoA and registers all match. Mistakes here tend to resurface with the bank and the tax authority.
Corporate Tax: registration and returns
The UAE has levied federal Corporate Tax since 2023: 0% on taxable income up to AED 375,000 and 9% above that. All resident juridical persons must register with the Federal Tax Authority (FTA) via EmaraTax, including free zone companies, even if they make no profit or expect to pay nothing. Registration deadlines are set by FTA decisions, and late registration carries an AED 10,000 penalty.
- The return is due within 9 months of the end of the tax period.
- Small businesses with revenue up to AED 3 million may elect Small Business Relief in the return; we check the current conditions and period of availability at the time of filing.
- Free zone companies can only apply 0% to qualifying income if they meet the conditions for Qualifying Free Zone Person status.
More on our tax and compliance page.
VAT: when registration is mandatory
UAE VAT is 5%. Registration is mandatory once taxable supplies and imports exceed AED 375,000 over the previous 12 months, or are expected to within the next 30 days. Voluntary registration is possible from AED 187,500. Once registered you file periodic returns and must meet invoicing rules. The threshold is based on turnover, not profit, so track it from your first month of trading.
UBO, ESR and corporate registers
- Beneficial owners (UBO). Mainland and free zone companies must keep a register of ultimate beneficial owners and a register of shareholders, and file the information with their registrar. Changes generally have to be reported within 15 days. Breaches attract administrative fines.
- ESR (economic substance). The Economic Substance Regulations were withdrawn for financial years ending after 31 December 2022. Obligations for 2019–2022 remain where they applied — worth checking for an older company.
- Shareholder resolutions. Changing a director, address, activities or shareholders requires resolutions and amendments to the licence and MoA.
Bookkeeping, audit and record keeping
The Corporate Tax law requires records to be kept for at least 7 years. Many free zones require annual audited accounts to renew the licence, and audited statements are also needed for tax purposes for Qualifying Free Zone Persons and larger businesses. Line up an accountant and auditor early — before your first financial year ends.
Licence renewal and keeping track of deadlines
The licence, lease, visas and Emirates IDs all renew on their own cycles. A missed licence renewal leads to fines, blocked visa transactions and problems with the bank. We take over deadline tracking as part of corporate legal support: a compliance calendar, reminders and document preparation, on a retainer from AED 3,500 per month. For a one-off check that nothing has been missed, see our legal audit.
FAQ
Yes. Registration is mandatory for resident juridical persons regardless of profit, including free zone companies. Late registration carries an AED 10,000 penalty.
Mandatorily once taxable supplies over 12 months exceed AED 375,000, or are expected to within the next 30 days. Voluntarily from AED 187,500.
No. ESR requirements were withdrawn for financial years ending after 31 December 2022. Obligations for 2019–2022, where they applied, remain.
Many free zones require annual audited accounts for licence renewal, and Qualifying Free Zone Persons also need them for tax purposes. Requirements vary by zone.