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or Incomplete Documentation Companies often submit incorrect trade license details, missing Emirates ID copies, or outdated company information — causing rejections or delays in registration 3.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!​ Avoid Tax Filing Mistakes

Corporate Tax Filing Deadline 2025: File by 28 September to Avoid Penalties If your total turnover exceeds 1 Million for the year 2024 then you must comply with Corporate Tax Registration by 31 March 2025. Corporate Tax Filing: After the tax registration you must file your Corporate Tax Return by 28 September 2025. What is Corporate Tax in the UAE? Corporate tax is a direct tax levied on the net income or profit of corporations and other businesses. Starting from 1 June 2023, the UAE introduced a 9% corporate tax rate on taxable profits exceeding AED 375,000. This move aligns the UAE with global tax standards while still offering a highly competitive business environment. Requirement                                                    Deadline Corporate Tax Registration                           31 March 2025 Corporate Tax Filing                                        28 September 2025 What is the New Tax in UAE from January 2025? Starting January 2025, the UAE will introduce a Global Minimum Tax (GMT) under OECD Pillar Two, affecting: Multinational companies (MNCs) with revenue over €750 millionA 15% minimum effective tax rateAdditional reporting requirements While this mainly impacts large corporations, all businesses should stay updated on tax changes.​ Krezko provides: 📌 Corporate Tax Advisory 📌 GMT Compliance Support 📌 CFO Services for Financial Planning Important for All LLC Businesses in the UAE All LLC (Limited Liability Company) businesses operating in the UAE are required to register for Corporate Tax and file a Corporate Tax Return, regardless of their profit level. Even if your taxable income is below AED 375,000, you must still: ✅ Register with the Federal Tax Authority (FTA) for Corporate Tax  ✅ File your Corporate Tax Return to report zero tax due (if applicable). What happens if you don’t comply? Failure to register or file on time can result in FTA penalties, including: AED 10,000 for failure to register for Corporate Tax AED 1,000 (increasing monthly up to AED 10,000) for late filing of Corporate Tax Return. Why You Should File Before the Deadline Missing the corporate tax return deadline can lead to: Hefty penalties and fines from the Federal Tax Authority (FTA) Legal consequences and compliance issues Restricted business operations ​Who Needs to File Corporate Tax in the UAE? A mainland company with an annual turnover above AED 1 millionA freelancer or sole proprietor registered under a trade licenseA free zone company (depending on activity and exemptions)A foreign business earning income in the UAE Even if your taxable income is below the AED 375,000 threshold, you still need to register and file to declare zero tax due. What You Need for Corporate Tax Filing? Valid Trade License Tax Registration Number (TRN) from FTA Details of business expenses and deductions All records in line with UAE Corporate Tax Law Need Help Filing? Let the Experts Handle It At KrezKo, we provide end-to-end corporate tax support to keep your business compliant and stress-free. Our Services : Free Tax Consultation – Get clarity on your corporate tax obligations Corporate Tax Registration – Ensure you’re registered before the FTA deadline Tax Return Filing – We prepare and submit your Corporate Tax Return accurately and on time Accounting & Bookkeeping – Stay organized with professional financial tracking Virtual CFO Services – Strategic financial planning and advisory support for your growth Get Help With Tax Filing

Mainland vs. Free Zone: What’s Best for Your Business in the UAE? Setting up a business in the UAE is a strategic move, thanks to its thriving economy, investor-friendly policies, and tax advantages. However, one of the first decisions you’ll need to make is whether to set up your company in the Mainland or a Free Zone. Both options have their unique benefits and limitations. Here’s a detailed comparison based on essential factors to help you choose the right structure for your business. 1. Ownership StructureMainland: As of recent reforms, foreign investors can now own 100% of their business in many sectors without the need for a local Emirati sponsor. However, some activities may still require local participation.Free Zone: Offers 100% foreign ownership from the start, making it highly attractive for international entrepreneurs. No local partner is required.​ 2. Business Activity and ScopeMainland: Businesses can operate anywhere in the UAE and internationally. You can trade directly with UAE local markets without restrictions.Free Zone: Generally limited to operating within the Free Zone and internationally. To trade within the UAE mainland, you’ll need a local distributor or agent. Office Space Requirement: Free Zone vs. Mainland Office space is a key factor when choosing between a Free Zone and Mainland company setup in the UAE. Here’s how requirements differ: Free Zone Office Requirement  Many Free Zones offer flexi-desk or virtual office options Physical office is optional for most license packages (especially for service-based or consulting businesses)  Ideal for startups, freelancers, and remote-first businesses Upgrades to shared offices or private workspaces are available if you need visas or banking approvals IFZA, Meydan, and SHAMS Free Zones allow license issuance without requiring a dedicated office. Mainland Office Requirement  Mandatory to lease a physical office space before license issuance Must have a valid Ejari (tenancy contract) approved by Dubai Municipality Minimum office space is typically around 200 sq. ft. but can vary based on business activity The size of your office impacts your visa quota (e.g., 1 visa per 9 sq. meters) Some co-working solutions and business centers are accepted if they meet DED standards. ​4. Visa Eligibility Mainland: Visa eligibility is based on the size of the office. Larger offices can sponsor more employees.Free Zone: Each Free Zone has its own visa quota, usually starting from 1 to 6 visas with standard packages, with options to increase based on office size.​ 5. Regulatory AuthorityMainland: Regulated by the Department of Economic Development (DED) of the respective emirate.Free Zone: Regulated by the specific Free Zone Authority where the company is registered.​ 6. Taxation and CustomsMainland: Subject to 5% VAT and 9% corporate tax (if annual profit exceeds AED 375,000). Customs duties apply when importing goods.Free Zone: Many Free Zones offer corporate tax exemptions (for qualifying Free Zone entities) and 0% personal income tax. Customs exemptions apply for goods imported within the zone or exported internationally. 7. Business FlexibilityMainland: Offers more flexibility in terms of market reach, office location, and government contracts. Ideal for companies targeting UAE residents and businesses.Free Zone: Limited to the Free Zone and international markets unless working with a local distributor. Less ideal for retail or service-based businesses targeting UAE residents.​ 8. Cost of SetupMainland: Typically involves higher initial costs due to office rental, licensing, and government fees.Free Zone: Offers more affordable setup packages, especially for startups and solo entrepreneurs. Flexi-desk packages and shared facilities help reduce costs.​ 9. Compliance and ReportingMainland: Requires more rigorous compliance, including annual audits, ESR (Economic Substance Regulations), and maintaining proper accounting records.Free Zone: Some Free Zones require annual audits, but compliance is generally less stringent compared to Mainland companies.​ The best route for your Dubai company registration depends on your business model, goals, and target audience. A Mainland setup is ideal if you plan to serve the local UAE market extensively. On the other hand, a Free Zone company is perfect for international operations, tech startups, and service providers looking for cost-effective solutions with minimal hassle. At KrezKo, we specialize in business setup in Dubai and across the UAE, helping you choose the best path to success. From legal paperwork to finding the right location, our experts will guide you every step of the way.