New UAE Company: Corporate Tax & VAT Checklist (2026)

A new UAE company must register for corporate tax within three months of incorporation, start keeping proper accounting records from day one, register for VAT within 30 days of its taxable supplies passing AED 375,000, and file its first corporate tax return within nine months of the end of its first tax period. Missing the corporate tax registration deadline alone costs a fixed AED 10,000, even if the company has not made a sale.

This checklist takes you through your first 12 months in order, so you know what to do and when. It applies to mainland and free zone companies incorporated on or after 1 March 2024.

Your first 12 months at a glance

When	What to do
Month 1	Set up your books, bank account and record keeping. Decide your financial year
By month 3	Register for corporate tax on EmaraTax
Every month	Track taxable supplies against the VAT thresholds
Within 30 days of passing AED 375,000	Register for VAT
Before your phase start date	Appoint an e-invoicing Accredited Service Provider (ASP)
Quarterly, once VAT registered	File VAT returns
Within 9 months of your first year end	File your first corporate tax return

Month 1: set up your books properly

Corporate tax and VAT rules require you to keep accounting records and supporting documents, such as invoices, contracts and bank statements, for at least seven years. Setting this up on day one is far cheaper than reconstructing it later.

Open a business bank account and keep business and personal spending separate.
Choose accounting software such as Zoho Books, Xero or QuickBooks, and connect your bank feeds.
Record your opening position: share capital, any founder loans, set-up costs and licence fees.
Keep every invoice and receipt, including set-up costs paid before the bank account opened.
Decide your financial year. Your corporate tax period normally follows it, and it sets your filing deadline.

If you are not doing this yourself, an outsourced accountant for startups can set it up and keep it running.

By month 3: register for corporate tax

Every UAE company must register for corporate tax and get a Corporate Tax Registration Number, even if it expects no profit. Under FTA Decision No. 3 of 2024, a company incorporated on or after 1 March 2024 must apply within three months of incorporation. Free zone companies follow the same rule.

Registration is done online on the FTA's EmaraTax portal. You will need your trade licence, memorandum or articles of association, Emirates ID and passport details of the authorised signatory, and your contact details. Our step-by-step corporate tax registration guide walks through each screen, and our corporate tax registration service can handle it for you.

Missing the deadline triggers a fixed administrative penalty of AED 10,000 under Cabinet Decision No. 10 of 2024. The FTA's waiver initiative cancels or refunds it if you file your first corporate tax return within seven months of the end of your first tax period. Check the current status on the FTA website. See our guide to the corporate tax penalty waiver.

Every month: track the VAT thresholds

You must register for VAT if your taxable supplies and imports:

exceeded AED 375,000 over the previous 12 months, or
are expected to exceed AED 375,000 in the next 30 days.

You must apply within 30 days of becoming liable. You can also register voluntarily once taxable supplies, imports or taxable expenses pass AED 187,500. Voluntary registration lets a startup recover VAT on its set-up and running costs, but it also means filing returns from then on.

Because the test looks back over a rolling 12 months, check your running total every month. Our VAT registration guide explains the tests, and the FTA's VAT User Guide sets an AED 10,000 penalty for registering late.

Before your start date: prepare for e-invoicing

UAE e-invoicing becomes mandatory from 1 January 2027 for businesses with revenue of AED 50 million or more and from 1 July 2027 for all other in-scope businesses. Every in-scope business must appoint an Accredited Service Provider before its start date. If you invoice other businesses, choose accounting software that can connect to an ASP now, so you are not migrating systems in your second year. Our e-invoicing guide covers the phases and penalties.

Free zone companies: decide on Qualifying Free Zone Person status early

A free zone company can pay 0% corporate tax on qualifying income if it meets the conditions to be a Qualifying Free Zone Person. Those conditions include adequate substance in the free zone, qualifying activities, staying within the de minimis limit for non-qualifying revenue, and audited financial statements every year.

The conditions affect who you contract with and how you invoice from the start, so decide in your first months whether you are aiming for it. A Qualifying Free Zone Person cannot elect Small Business Relief. See our guide to Qualifying Free Zone Person status.

Within 9 months of your first year end: file your first return

Your first corporate tax return, and any tax due, must be filed within nine months of the end of your first tax period. For example, a company whose first financial year ends on 31 December 2026 must file by 30 September 2027.

Two choices in that first return matter for a startup:

Small Business Relief. A resident business with revenue of AED 3 million or less can elect to be treated as having no taxable income, for tax periods ending on or before 31 December 2029. Read Small Business Relief extended to 2029.
Tax losses. Many startups make a loss in year one. Electing Small Business Relief means that period's tax losses cannot be carried forward, so compare both options before you file.

Filing within seven months instead of nine also protects the late registration penalty waiver, if it applies to you. Our corporate tax calculator gives a quick estimate of where you stand.

The new company checklist

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TaxBox handles corporate tax and VAT registration, monthly bookkeeping and every filing for new UAE companies, for one fixed fee from AED 790 per month on yearly billing. See outsourced accounting for startups.

Frequently asked questions

When does a new company have to register for corporate tax in the UAE? Within three months of incorporation, for companies incorporated on or after 1 March 2024. This applies to mainland and free zone companies, even if they expect no profit.

What is the penalty for a new company that registers late? A fixed administrative penalty of AED 10,000. The FTA's waiver initiative cancels or refunds it if the first corporate tax return is filed within seven months of the end of the first tax period.

Does a new company have to register for VAT straight away? Only once taxable supplies and imports exceed AED 375,000 over 12 months, or are expected to in the next 30 days. You must then apply within 30 days. Voluntary registration is possible from AED 187,500.

When is a new company's first corporate tax return due? Within nine months of the end of its first tax period. If the first financial year ends on 31 December 2026, the return is due by 30 September 2027.

Can a startup pay 0% corporate tax? Often, yes. Taxable income up to AED 375,000 is taxed at 0%, and businesses with revenue of AED 3 million or less can elect Small Business Relief for tax periods ending on or before 31 December 2029. Qualifying Free Zone Persons can get 0% on qualifying income. You still have to register and file.

Sources

This article is general information, not tax advice. Rules, dates and penalty amounts change, so check the Ministry of Finance and Federal Tax Authority before you act.

Accounting

Corporate Tax

VAT

Not sure where to start?

New Company in the UAE? Your Corporate Tax and VAT Checklist for the First 12 Months