Every UAE company, including free zone companies, must register for corporate tax, even if it expects to pay no tax. As of October 2026, a company incorporated in the UAE on or after 1 March 2024 must register within three months of its incorporation date. Missing the deadline triggers a fixed AED 10,000 penalty, although a waiver may be available if you register and file your first return on time.
Who must register?
- All UAE companies, mainland and free zone, from the date they are set up.
- Foreign companies effectively managed and controlled in the UAE, or with a permanent establishment or nexus here.
- Individuals doing business (including freelancers and sole establishments) once business turnover exceeds AED 1 million in a calendar year.
Registration is free and done online on the FTA’s EmaraTax platform. If you are not sure whether you are in scope, our tax page explains the basics, and our earlier article “UAE corporate tax 2026: what small businesses need to know” covers rates and reliefs.
Registration deadlines
| Who | Deadline (FTA Decision No. 3 of 2024) |
|---|---|
| UAE company (mainland or free zone) set up on or after 1 March 2024 | 3 months from incorporation |
| Foreign company managed and controlled in the UAE | 3 months from the end of its financial year |
| Non-resident with a UAE nexus from 1 March 2024 | 3 months from the date the nexus arises |
| Resident individual with turnover above AED 1 million | 31 March of the following year |
| Non-resident individual | 3 months from becoming subject to tax |
Companies set up before 1 March 2024 had staggered deadlines during 2024 based on their licence issue month. If yours has still not registered, register as soon as possible.
The AED 10,000 penalty and the waiver
The late registration penalty is AED 10,000 per taxable person. The FTA has confirmed that it will waive this penalty if the business registers and submits its first tax return within seven months of the end of its first tax period. As of October 2026, the FTA has not announced an end date for this approach, but you should not rely on it as a planning strategy.
Other corporate tax penalties
| Violation | Penalty |
|---|---|
| Late registration | AED 10,000 |
| Late tax return | AED 500 a month for the first 12 months, then AED 1,000 a month |
| Late payment | 14% per year, applied monthly on the unpaid tax |
| Late deregistration | Monthly penalty up to a cap |
The corporate tax return and any payment are due within nine months of the end of each tax period. For a company with a calendar financial year, that is 30 September of the following year.
What you need to register
- Trade licence.
- Passport and Emirates ID of the owners and authorised signatory.
- Memorandum or Articles of Association.
- Proof of authority for the signatory.
- Contact details and financial year end.
Most registrations are straightforward, but mistakes in the financial year or legal form can cause problems later, so check the details carefully before you submit.
Registered: what comes next?
- Keep proper accounting records from day one.
- Decide whether to elect for Small Business Relief (revenue of AED 3 million or less, for tax periods ending on or before 31 December 2029). You still need to file a return.
- If you are a free zone company, check whether you meet the Qualifying Free Zone Person conditions, including audited financial statements.
- Diary your first return deadline: nine months after your first tax period ends.
- Remember to deregister within three months if the business stops trading.
Quick self-check
- Do you know your incorporation date and three-month deadline?
- Do you know your first tax period end date?
- Is your TRN saved and shared with your accountant?
- Have you diarised the return and payment date?
Special cases
Exempt persons
Some entities, such as qualifying public benefit entities and certain investment funds, can be exempt from corporate tax. Many of them still need to register or apply to the FTA to confirm their status, so do not assume an exemption removes the need to register.
Free zone companies
Free zone companies register in exactly the same way as mainland companies. Being in a free zone does not change the three-month deadline, and the 0% rate on qualifying income is only available to companies that are registered and meet all the conditions.
Dormant or new companies
A company that has not started trading is still a taxable person from incorporation and must register on time.
Common mistakes
- Assuming a free zone licence means no corporate tax obligations.
- Waiting for the first profit before registering.
- Entering the wrong financial year, which shifts every future deadline.
- Registering the owner as an individual instead of the company.
How Tajnes can help
We build corporate tax registration into every company set-up so the deadline is not missed, and coordinate with qualified tax professionals for filings. Fees are shown separately and VAT applies to our service fee only. See the tax page, the cost calculator or book a consultation.
Frequently asked questions
Do free zone companies need to register for corporate tax?
Yes. All free zone companies must register, even if they expect to benefit from the 0% rate.
What is the deadline for a new company?
Three months from the date of incorporation, for companies set up on or after 1 March 2024.
What is the penalty for late corporate tax registration?
AED 10,000. The FTA may waive it if you register and file your first return within seven months of the end of your first tax period.
Do freelancers need to register?
Only once business turnover exceeds AED 1 million in a calendar year. Resident individuals then register by 31 March of the following year.
Is there a fee to register for corporate tax?
No. Registration on EmaraTax is free of charge.
When is the corporate tax return due?
Within nine months after the end of the tax period.
General information, not legal or tax advice. Rules and fees change and authorities make all final decisions. T&Cs apply.
