Yes. Every company that is a taxable person in the UAE must register with the Federal Tax Authority (FTA), and the FTA has said this includes all free zone companies. Registration is needed even if the company expects to pay no tax.
When to register
The FTA has set deadlines for companies set up on or after 1 March 2024.
- A company incorporated in the UAE, including in a free zone, has three months from its date of incorporation or establishment.
- A company formed abroad but managed and controlled in the UAE has three months from the end of its financial year.
- A foreign company with a permanent establishment in the UAE has six months from the date that establishment exists.
The late registration penalty
Missing the deadline brings an administrative penalty of AED 10,000. The FTA runs a waiver for a first tax period. The penalty is waived automatically if the company registers and files its first return, or annual declaration, within seven months of the end of that first period. The usual filing window is nine months. If the penalty was already paid, the FTA credits the amount to the company's EmaraTax account.
Individuals in business
An individual can also have to register. A UAE resident whose turnover from business in the UAE goes above AED 1 million in a calendar year must register by 31 March of the following year.
How to register
Registration is done online through the FTA's EmaraTax platform, which is open at all hours. Once registered, the company receives a tax registration number and must file returns. Free zone companies then need to look at whether they qualify for the 0% rate. See Who qualifies for the 0% free zone rate?
An example
Lucas Ferreira, a Brazilian consultant living in Dubai, receives his free zone company licence on 10 February 2026. His first contracts start in the summer, so he assumes there is nothing to do yet. His deadline to register is in fact 10 May 2026, three months after incorporation. He registers on EmaraTax in April, before any income arrives, and so avoids the AED 10,000 penalty.
Quick questions
Does a free zone company paying 0% still need to register?
Yes. The FTA has said all free zone persons must register, whether or not they qualify for the 0% rate.
What is the penalty for registering late?
The FTA charges an administrative penalty of AED 10,000. It can be waived for a first tax period if the first return is filed within seven months of the period end.
Sources: FTA: Public clarification on registration timelines for corporate tax (June 2024); FTA: Awareness workshop in Dubai on corporate tax for free zone persons (September 2024); FTA: Late registration penalty waiver initiative (May 2026).
General information as at October 2026, not advice. The examples are fictional and simplified, and the rules have conditions and exceptions not covered here. Take advice on your own circumstances, in each country involved, before acting.