Setting up a company in the UAE comes with a lot of paperwork, and tax is easy to leave for later. But some deadlines start running the day your license is issued, and missing them is expensive.
This checklist covers what a new mainland or Free Zone company needs to do about tax in its first year, in the order you need to do it.
| Task | When |
|---|---|
| Set up UAE Pass and EmaraTax | First week |
| Register for Corporate Tax | Within 3 months of incorporation |
| Start bookkeeping and a business bank account | From day one |
| Track sales against the VAT threshold | Every month |
| Register for VAT, if required | Within 30 days of passing AED 375,000 |
| File your first Corporate Tax return | Within 9 months of your first year-end |
1. Set Up UAE Pass and EmaraTax
Every tax registration and return is done online on EmaraTax, the FTA's platform, and you sign in with UAE Pass. Set both up in your first week, using the details of the owner or authorized signatory, so nothing delays your registrations later.
2. Register for Corporate Tax Within 3 Months
A company set up on or after 1 March 2024 must register for Corporate Tax within 3 months of incorporation. This applies even if you expect no profit, a loss, or a 0% rate, and it applies to Free Zone companies too.
Miss the deadline and the FTA charges a fixed penalty of AED 10,000. It is one of the most common, and most avoidable, fines for new companies. Our Corporate Tax registration guide covers the details.
3. Start Bookkeeping From Day One
- Open a separate business bank account and keep personal spending out of it.
- Record every sale, purchase and expense, and keep the invoices and receipts.
- Keep records for at least 5 years for VAT and 7 years for Corporate Tax.
Catching up on a year of missing records is far harder than recording as you go. Our accounting and bookkeeping service can set this up from the start.
4. Check Whether You Need VAT
You must register for VAT once your taxable supplies and imports pass AED 375,000 over any 12 months, or if you expect to pass it in the next 30 days. You then have 30 days to apply.
You can register voluntarily from AED 187,500, and expenses count toward that amount. This can make sense for a new company with large setup costs, because registration lets you reclaim the VAT you pay on business purchases. Our VAT registration guide explains the steps.
5. Get Your Invoices Right
Once you are registered for VAT, every tax invoice must show your TRN and the VAT charged. Failing to issue a tax invoice when required costs AED 2,500 for each case, so set up a correct invoice template before your first sale. See our TRN guide for what it is and where to find it.
6. Plan for Your First Corporate Tax Return
Your first Corporate Tax return is due within 9 months of the end of your first financial year. Most new companies pay little or nothing at first:
- 0% on taxable income up to AED 375,000, and 9% above that
- Small Business Relief if your revenue is AED 3 million or less. It is available for tax periods ending on or before 31 December 2029, and you must claim it in your return.
As Your Company Grows
Once the basics are in place, the next step is planning: budgets, cash flow forecasts and regular reports that show where the business is heading. Our Virtual CFO service gives growing companies that support without the cost of a full-time finance manager.
This guide is general information based on FTA rules as of 22 October 2026. Tax rules change, so speak to a consultant before acting on it.