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 the 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)
Top 10 Common Issues Impacting Corporate Tax Registration in the UAE
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Companies often submit incorrect trade license details, missing Emirates ID copies, or outdated company information — causing rejections or delays in registration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.
Why Choose KrezKo for Corporate Tax Services in the UAE?
Corporate tax registration & filing
FTA compliance & advisory
Accounting & bookkeeping
VAT & audit assistance
Virtual CFO solutions
Our experienced corporate tax consultants in Dubai ensure your business remains compliant while maximizing tax efficiency.
1. Who needs to register for corporate tax in the UAE?
All UAE companies, including mainland, free zone, and offshore entities, must register for corporate tax with the FTA if their taxable income exceeds AED 375,000. Even if your business qualifies for 0% tax, registration is still mandatory.
2. What is the penalty for late corporate tax registration in the UAE?
The FTA imposes a penalty of AED 10,000 for late corporate tax registration. Businesses are advised to register before their respective FTA deadlines based on their trade license issue date to avoid fines.
3. Are Free Zone companies exempt from corporate tax?
Only Qualifying Free Zone Persons (QFZPs) meeting specific FTA conditions can enjoy 0% corporate tax. Other Free Zone companies that don’t qualify must register and pay 9% corporate tax on taxable profits above AED 375,000.
4. Does VAT registration automatically include corporate tax registration?
No. VAT and corporate tax are separate registrations under the Federal Tax Authority (FTA). Businesses must register for corporate tax independently through the FTA portal.
5. What documents are required for UAE corporate tax registration?
Businesses need a valid trade license, Emirates ID and passport, MOA/AOA, shareholder details, financial year information, and business activity description for successful registration on the FTA portal.
6. How can KrezKo help with corporate tax filing in Dubai?
KrezKo’s tax experts manage your corporate tax registration, filing, and compliance, ensuring accuracy, timely submission, and audit-ready records. We also offer free tax consultations for UAE businesses.