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Corporate tax registration in the UAE is free on EmaraTax, and it is not optional for a free zone company. A company set up on or after , free zone persons included, must apply within 3 months of incorporation. Missing that deadline brings an AED 10,000 penalty. The FTA takes about 20 business days to process a complete application. If you are also registered for VAT, see the guide to your VAT certificate and TRN.
We are UAEFreeZoneDirectory.com, a directory of free zones, not the Federal Tax Authority or a tax agent. You can register yourself at no cost. If you want a professional to do it, we hand your details to a licensed partner.
Looking ahead: see Free zone corporate tax 2027.
The deadline and the penalty
| Item | Rule |
|---|---|
| Who | Every resident juridical person, including free zone persons |
| Deadline for new companies | 3 months from incorporation |
| Government fee | Free |
| Processing | 20 business days from a complete application |
| Late registration penalty | AED 10,000 |
| Waiver | Penalty waived if the first tax return or annual declaration is filed within 7 months from the end of the first tax period |
| First return and payment | Within 9 months from the end of the tax period |
Source: FTA corporate tax registration service page, FTA Decision No. 3 news release and Ministry of Finance penalty notice, checked .
The waiver is a second chance, not a plan. It only helps if your first return goes in on time, and that return needs accounts behind it. A company that registers late and then files late pays the full amount.
Corporate tax rates for free zone companies
The headline rates apply to mainland companies and to free zone companies that do not qualify for special treatment:
- 0% on taxable income up to AED 375,000
- 9% on taxable income above AED 375,000
A qualifying free zone person (QFZP) pays 0% on qualifying income and 9% on taxable income that is not qualifying income. The conditions sit in the Corporate Tax Law, Cabinet Decision No. 100 and a Ministerial Decision. Fail one of them in a tax period and you lose QFZP status for that period and the next four. That is why the rate on your licence brochure tells you very little. What counts is whether your income and your setup meet the conditions every year.
Two more points catch people out. First, QFZPs need audited financial statements, so a free zone company aiming for 0% has an audit cost every year. Our audit for free zone companies page covers that. Second, the FTA has not published one list of corporate tax free zones. It tells taxpayers to confirm their status with their free zone authority. Ask your zone in writing.
Small business relief
Small business relief is open to a company whose revenue was AED 3,000,000 or less in the current tax period and in every earlier one. You elect it period by period. It covers tax periods ending on or before , under Ministerial Decision No. 73.
A qualifying free zone person cannot elect it. A small free zone company therefore chooses between two routes: meet the QFZP conditions, or give up QFZP status and use the relief. A tax adviser can run both against your real figures.
What registration costs if you pay someone
Tax and setup agencies publish corporate tax registration fees of about AED 299 to AED 1,500 (published prices of 3 setup agencies, checked ). AED 299 is a promotional price. Some firms fold registration into a monthly tax plan instead of charging it alone. RAKEZ sells the service to its own companies for AED 1,249. All of these are professional fees. The FTA charges nothing.
How to register for corporate tax
- Log in to EmaraTax with the account you use for VAT, or create one.
- Open the taxable person profile for the company, or add it from your trade licence.
- Choose corporate tax registration and fill in the company, owner and manager details.
- Upload the documents EmaraTax asks for. Expect the trade licence, the ID of the authorised signatory and the memorandum or articles of association.
- Give your financial year end. This sets your first tax period and every deadline after it.
- Submit and answer any FTA question quickly. The 20 business days run from a complete file.
- Save the corporate tax TRN and certificate with your company records.
Mistakes to avoid
- Counting 3 months from your first sale. The clock runs from incorporation.
- Thinking a 0% rate means no registration. Every company registers.
- Picking a financial year end without checking it against your audit and bank timings.
- Electing small business relief while claiming QFZP status. You cannot have both.
- Losing track of the 9 month return deadline once you are registered.
Economic substance reports are no longer part of this list for recent years. Our ESR guide explains what changed.
Get it filed
Use the form on this page with your free zone, licence date and financial year end. A licensed tax partner checks the deadline, files the registration and quotes one fee before starting. Many owners ask for VAT registration and bookkeeping at the same time, since the return needs both. Comparing set up options first? Read free zone vs mainland.
Sources
- https://tax.gov.ae/en/services/corporate.tax.registration.aspx (free registration, 20 business days, penalty waiver)
- https://tax.gov.ae/en/media.centre/news/federal.tax.authority.issues.new.decision.on.specified.timeframes.for.corporate.tax.registration.aspx (3 month deadline)
- Ministry of Finance notice on the late registration penalty (AED 10,000 penalty)
- https://u.ae/en/information-and-services/finance-and-investment/taxation/corporate-tax (rates)
- https://mof.gov.ae/en/public-finance/tax/corporate-tax/ (QFZP rate, return deadline)
- FTA basic tax information bulletin for free zone persons (audited accounts, 9% on non qualifying income)
- https://tax.gov.ae/en/taxes/corporate.tax/corporate.tax.topics/small.business.relief.23.aspx (small business relief)
- https://rakez.com/en/promotions/corporate-tax, https://thevatconsultant.com/product-pricing, https://egsh.ae/services/corporate-tax-registration-uae and https://www.uniwide.com/company-formation-in-uae-dubai/cost-of-services/ (service fees)
