Who Must Register for Corporate Tax in the UAE?

Introduction:

With the implementation of UAE Corporate Tax from June 1, 2023, businesses across the country must assess their tax obligations — and registration is the first legal step. But not everyone is required to register. Whether you’re a company owner, freelancer, or running a Free Zone entity, knowing the registration criteria can save you from penalties and ensure legal compliance.

Who Is Required to Register for Corporate Tax in the UAE?

The following must register for UAE Corporate Tax with the Federal Tax Authority (FTA):

1. UAE Resident Companies:

All mainland (onshore) companies incorporated or effectively managed in the UAE
All Free Zone entities, whether qualifying for 0% or subject to 9%

2. Branches of Foreign Companies:

UAE branches of non-resident companies conducting business activities in the UAE.

3. Holding companies:

Holding companies and SPVs (Special Purpose Vehicles) must also register if they carry on any business activity or earn income.

4. Natural Persons Conducting Business:

If you’re a freelancer, sole proprietor, or individual entrepreneur, you must register if:

Your annual business income exceeds AED 1,000,000

Note: This includes online businesses, influencers, consultants, and any individual carrying out licensed or regular business activities in the UAE.

Who Is Exempt from Registration?

The following entities are not required to register, unless they earn unrelated business income:

Government entities and government-controlled entities
Extractive and non-extractive natural resource businesses (with Ministerial approval)
Public benefit organizations (registered and approved)
Regulated investment funds and pension funds
Non-resident persons with no permanent establishment or nexus in the UAE

Do Freelancers Need to Register?

Yes — if you’re a freelancer earning more than AED 1 million/year, you are required to:

Register for corporate tax
Maintain records of your income and expenses
File an annual return

However, if your income is below AED 1 million, you are not required to register.

Do Free Zone Companies Need to Register?

Yes — all Free Zone businesses must register with the FTA, regardless of whether they qualify for the 0% rate as a Qualifying Free Zone Person (QFZP).

They must:

Submit corporate tax returns
Maintain adequate substance and separate records
Meet other QFZP conditions to retain 0% tax rate

If these conditions are not met, the standard 9% tax rate will apply.

What About Small Businesses?

If you’re a UAE-resident business with annual revenue under AED 3 million, you may be eligible for Small Business Relief until 2026.

But:

You still need to register for corporate tax
You must file a return to claim the relief

When to Register?

Every taxable person must register before the end of their first tax period. As per the FTA guidelines:

For companies with financial years starting on or after June 1, 2023, registration should be completed in advance or during the period
Freelancers or new businesses must register within a set timeline from license issuance or when income exceeds AED 1 million

Penalties apply for late registration or failure to register when required.

Documents Required for Corporate Tax Registration:

Depending on the type of entity, you will typically need:

Trade License copy
Passport and Emirates ID of the owner/manager
MOA or AOA (for companies)
Financial records (last audited or management accounts)
Business activity description
Contact details of the entity

All registration is completed through the FTA Portal.

Summary Table:

Entity Type	Registration Required?	Threshold/Condition
Mainland (onshore) companies	✅ Yes	All must register
Free Zone entities (QFZP or not)	✅ Yes	All must register
Freelancers & sole proprietors	✅ If income > AED 1M	Optional if income ≤ AED 1M
Branches of foreign companies	✅ Yes	If conducting business in UAE
Holding companies / SPVs	✅ Yes	If earning any income or doing business
Government/public entities	❌ No (if approved)	Must be listed as exempt
Investment funds/pension funds	❌ No (if approved)	Must meet exemption conditions

Final Thoughts:

Registration is mandatory for most businesses and freelancers above specific thresholds. Failing to register on time could result in hefty fines, missed relief opportunities, or tax audit risks. If you’re unsure about your status, it’s best to consult a corporate tax advisor.

Need Help with Tax Registration?

Think Biz Management Consultancies can help you:

Determine your eligibility
Complete your corporate tax registration with the FTA
Stay compliant and avoid penalties

Get in touch today and protect your business from non-compliance.

Email ID: info@alphabets.ae