Who must register for Corporate Tax?

WHO MUST REGISTER FOR CORPORATE TAX?

Who must register for Corporate Tax in the UAE? Learn which businesses, freelancers, and free zone companies must register and why. TAXESMAN explains.

Who Must Register for Corporate Tax?

Who must register for Corporate Tax in the UAE?

This is one of the most important compliance questions facing businesses today, especially now that the UAE Corporate Tax regime is in force.

Many business owners assume Corporate Tax only applies to large companies, or that free zone status means automatic exemption. In reality, the registration requirement is much broader.

In this guide, you will learn who must register for Corporate Tax, which businesses are included, and how to avoid common registration mistakes.

If you are unsure whether registration applies to you, TAXESMAN can review your situation quickly and clearly.

Who Must Register for Corporate Tax in the UAE?

In simple terms, any person or entity conducting a business or business activity in the UAE may be required to register for Corporate Tax, even if no tax is ultimately payable.

This includes businesses operating in:

1. Dubai
2. Abu Dhabi
3. Sharjah
4. UAE free zones

Corporate Tax registration is a legal obligation and is separate from whether you actually owe Corporate Tax.

If you want confirmation specific to your case, TAXESMAN can help.

Mainland Companies: Who Must Register for Corporate Tax?

All mainland companies licensed in the UAE must register for Corporate Tax if they carry out a business activity.

This includes:

1. Limited Liability Companies (LLCs)
2. Branches of foreign companies
3. Professional firms
4. Holding companies

Even if your taxable profit is below AED 375,000 and taxed at 0%, registration is still mandatory.

If you are a mainland business, TAXESMAN can handle your Corporate Tax registration end to end.

Free Zone Companies: Who Must Register for Corporate Tax?

A very common misunderstanding is that free zone companies do not need to register.

In fact, free zone companies must also register for Corporate Tax, even if they may qualify for a 0% rate on qualifying income.

Registration is required in order to:

1. Declare income correctly
2. Demonstrate eligibility for free zone incentives
3. File Corporate Tax returns where applicable

If you operate in a free zone, TAXESMAN can confirm your position and manage registration properly.

Freelancers and Individuals: Who Must Register for Corporate Tax?

Corporate Tax in the UAE is not limited to companies.

Freelancers, sole proprietors, and individuals conducting a business activity may also be required to register for Corporate Tax.

This applies if you:

1. Hold a freelance or professional license
2. Earn income from a business activity
3. Operate independently in the UAE

Nationality or visa type does not affect this requirement.

If you are a freelancer or consultant, TAXESMAN can assess whether Corporate Tax registration applies to you.

Foreign Companies: Who Must Register for Corporate Tax?

Foreign companies may also need to register if they:

1. Have a permanent establishment in the UAE
2. Conduct business through a UAE branch
3. Generate taxable UAE-sourced income under Corporate Tax rules

This often affects international groups with UAE operations.

If your company is based abroad but active in the UAE, TAXESMAN can guide you through the registration requirements.

Do Non-Profit or Exempt Entities Need to Register?

Some entities may be exempt from Corporate Tax, but exemption does not always mean automatic exclusion from registration.

In many cases:

1. Formal exemption approval is required
2. Registration or notification may still be necessary

Assuming exemption without confirmation can lead to compliance issues.

TAXESMAN can help verify exemption status properly.

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What Happens If I Don’t Register for Corporate Tax?

If you are required to register but fail to do so:

1. Administrative penalties may apply
2. You risk compliance issues during FTA reviews
3. Future filings may become more complex

Once you fall within the scope of Corporate Tax, registration is not optional.

If you are unsure whether you missed a registration deadline, TAXESMAN can help you act quickly.

Practical Examples: Who Must Register for Corporate Tax?

Dubai Example: Small Consulting Firm

A consulting firm in Dubai earns profits below the 0% threshold.

Even though no tax is payable, Corporate Tax registration is still mandatory.

Abu Dhabi Example: Freelancer

A freelance IT consultant in Abu Dhabi operates under a professional license.

They are conducting a business activity and must register for Corporate Tax.

Free Zone Example: Startup

A startup in a UAE free zone qualifies for 0% tax on qualifying income.

Registration is still required to declare this status correctly.

TAXESMAN can confirm eligibility and ensure proper reporting.

Who Must Register for Corporate Tax?

To recap, who must register for Corporate Tax in the UAE?

1. Mainland companies conducting business activities
2. Free zone companies, even if eligible for 0% tax
3. Freelancers and sole proprietors
4. Foreign companies with UAE business presence
5. Any entity carrying out a taxable business activity

Corporate Tax registration is a compliance requirement, not a choice.

Do not take chances with Corporate Tax obligations. Let TAXESMAN assess your situation, handle registration, and manage ongoing compliance with confidence.

FAQs: Who Must Register for Corporate Tax?

Who must register for Corporate Tax in the UAE?

Any business or individual conducting a business activity in the UAE may be required to register.

Do free zone companies need to register for Corporate Tax?

Yes. Registration is required even if a 0% rate may apply.

Do freelancers need to register for Corporate Tax?

Yes, if they are conducting a taxable business activity.

If my profits are below AED 375,000, do I still need to register?

Yes. Registration is required even if no tax is payable.

Who can help me with Corporate Tax registration?

TAXESMAN provides full Corporate Tax registration and compliance support.