Owners often ask whether they must register, when and what happens if they miss it. For most businesses the answer is yes, even if no tax will be due.
The short answer
Registration is required for most mainland businesses, free zone companies and foreign companies with UAE links, and for some individuals. The FTA issues a tax registration number. Businesses that owe no tax, such as free zone companies taxed at 0% on qualifying income, must still register to prove their status.
Who must register
- Mainland companies: LLCs, private joint stock companies and foreign branches. A small bakery with profit under AED 375,000 must still register.
- Free zone companies: must register to confirm eligibility for the 0% treatment.
- Non-resident entities: if they have a permanent establishment or other nexus in the UAE.
- Individuals: if annual business turnover exceeds AED 1 million. This covers freelancers, consultants, online sellers, commercial landlords and influencers.
Who is exempt
- Government entities
- Natural resource businesses, such as oil and gas, already subject to emirate-level taxes
- Public benefit organisations, if approved by the Cabinet (they may still need to register)
- Non-residents with no office, staff or UAE income
- Firms the FTA asks to register only for record-keeping
Free zone companies
Free zones offer 100% foreign ownership and, in some cases, 0% tax. Registration confirms the status. Qualifying income is taxed at 0% for a Qualifying Free Zone Person, and non-qualifying income, such as certain mainland sales, is taxed at 9%.
Penalties
- Late registration: AED 10,000.
- Other risks: trouble renewing the trade licence, banking difficulties and lost government or corporate contracts.
- A temporary relief for late registrants was announced in 2025. Check whether it applies to you. See our article on late corporate tax registration.
Registering step by step
1. Log in to the EmaraTax portal, for example with UAE PASS. 2. Select individual or company. 3. Enter the business details: licence number, company name, activity, legal structure and contacts. 4. Upload the documents: a valid trade licence, memorandum of association, passport and Emirates ID copies and proof of authority if you act for the company. 5. Review and submit. 6. Receive the registration number once it is approved.
Common mistakes
Expired trade licences, unclear scans, spelling errors in company names and registering at the last minute.
FAQs
- Do dormant companies need to register? Yes, if they hold a valid trade licence.
- Do freelancers need to register? Yes, if yearly income exceeds AED 1 million.
- Is corporate tax registration the same as VAT? No. They are separate registrations with different numbers.
See our corporate tax services.
Key takeaways
- Most mainland, free zone and some foreign businesses must register even with no tax due.
- Individuals register if business turnover exceeds AED 1 million.
- Late registration costs AED 10,000.
Frequently asked questions
Do dormant companies need to register?
Yes, if they hold a valid trade licence.
Is corporate tax registration separate from VAT?
Yes, with separate registration numbers.
Do free zone companies at 0% need to register?
Yes.
Talk to a chartered accountant
Questions about your own situation? Reach us directly and we will reply with clear next steps.
This article is general information and not advice for your specific circumstances. Rules and thresholds change, so confirm the current position before you act.
