Dubai Corporate Tax Services & Expert Consultation

Common Issues Impacting Corporate Tax Registration in the UAE

With the introduction of Corporate Tax (CT) in the UAE, many businesses are now required to register and comply with the new tax laws. While the registration process seems straightforward, several common issues can delay or complicate corporate tax registration in the UAE. Understanding these challenges helps businesses stay compliant and avoid penalties.

To register your business for corporate tax with the Federal Tax Authority (FTA), make sure you have the following information and documents ready:

1. Entity Type:

Ensure that correct entity type and entity sub-type is selected.

Mainland LLC, Free Zone Company, Offshore, Civil Company, or Sole Establishment
Clarify if it’s a natural person (freelancer/self-employed) or juridical person (registered business)

2. Identification Documents

Trade License (valid copy)
Emirates ID and Passport of owner(s)/authorized signatory
UAE residency visa (if applicable)
Memorandum of Association (MOA) or Articles of Association (AOA)
Power of Attorney (if someone else is signing or handling the application)

3. Shareholding Details

Ensure that the percentage shareholding assigned to each shareholder is correct and up-to -date (shareholders with a 25% or more shareholding must be registered under ownership details )

Full list of shareholders/partners
Ownership percentage of each shareholder
Passport/Emirates ID copies of shareholders
UBO (Ultimate Beneficial Owner) declaration (if applicable)

4. Incorporation Date

The Incorporation Date Must Match The Company's Commencement Date Stated In The Memorandum Of Association (MOA)

Exact date your business was incorporated as per the trade license
This determines your registration deadline with the FTA

5. Financial/Tax Period

Financial year start and end date (e.g., Jan–Dec or Apr–Mar)
This will determine your first tax return filing period

6. Business Activity Details

Clear description of your commercial activity
Select from the activity list on the FTA portal (matching your license)

1. Lack of Awareness of Deadlines

Many businesses are unaware that registration deadlines vary depending on their trade license issue date, leading to missed deadlines and AED 10,000 penalties.

2. Incorrect or Incomplete Documentation

Companies often submit incorrect trade license details, missing Emirates ID copies, or outdated company information — causing rejections or delays in registration

3. Not Knowing Taxable Status

Businesses are unsure if they’re exempt, below the threshold, or need to register — especially small companies or sole proprietors.

4. No Proper Accounting Records

The FTA requires financial statements and proper bookkeeping. Businesses without updated accounts face difficulty proving financials during registration or later audits.

5. Confusion Between VAT and Corporate Tax

Some companies mistakenly believe that registering for VAT automatically registers them for Corporate Tax — which is not true.

6. Late Action by Free Zone Companies

Some Free Zone businesses wrongly assume they are exempt from Corporate Tax and delay registration, especially if they don’t qualify as a “Qualifying Free Zone Person.”

7. Technical Glitches on the FTA Portal

Users sometimes face login errors or portal downtime, particularly during high traffic periods.

8. Lack of Professional Help

Trying to DIY the process without tax knowledge leads to errors, delays, or even wrong tax group applications.

9. Language Barriers or Misunderstanding Legal Terms

Non-native speakers may misinterpret FTA guidelines or fail to follow updates correctly.

10. Multiple Licenses or Branches

Companies with multiple branches or licenses sometimes register incorrectly or under the wrong legal entity.

How to Avoid Corporate Tax Registration Issues

Hire a professional corporate tax consultant in Dubai for guidance.
Ensure all documentation is complete and verified before submission.
Start the registration process early to meet deadlines.
Maintain accurate accounting and bookkeeping records.
Stay informed about the latest UAE corporate tax laws and updates.

Looking to file your corporate tax in the UAE? At KrezKo, our expert corporate tax consultants in Dubai are here to help with seamless corporate tax registration, filing services, and ongoing support like bookkeeping and virtual CFO solutions. We also offer a free tax consultation to get you started. Need to file your corporate tax? Contact us today!

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