For founders with a first UAE licence
Your first UAE licence: books, VAT and corporate tax from month one
The short answer
A new UAE company must apply for corporate tax with the Federal Tax Authority (FTA) within three months of incorporation, establishment or recognition, whether or not it has traded. VAT registration is mandatory once taxable supplies and imports exceed AED 375,000, and optional above AED 187,500. Books kept from month one supply the proof for both.
A new company's first year is easier to see from outside than from inside. Corporate tax registration is due within three months of incorporation, establishment or recognition under FTA Decision No. 3 of 2024. The application is free on EmaraTax, and the FTA's stated processing time is 20 business days from a complete application. The first tax period runs from the date the FTA assigns, not from the first sale. VAT registration follows your figures. It is mandatory above AED 375,000 of taxable supplies and imports, or when you expect to pass that within the next 30 days. It is open voluntarily above AED 187,500 of taxable supplies, imports or taxable expenses. Each of those dates depends on facts the books have to prove.
The books are simple at this stage: a chart of accounts that fits the activity, a bank account reconciled monthly, sales and purchase invoices that carry the VAT details the law requires, and a calendar of the filings that follow. Registration also asks for documents worth keeping in one folder: the trade licence, the Memorandum of Association or partnership agreement if available, the Emirates ID and passport of any owner above 25% and of authorised signatories, and proof of the signatory's authority. Starting the books late means preparing the first VAT return from unreconciled bank statements.
At a glance
- Indicative cost
- The FTA charges nothing for corporate tax registration, and the auditor's fee, where one is engaged, is theirs. The Velarozone service fee for registration, bookkeeping and returns is stated in your engagement letter before the first month.
- Timing
- Corporate tax registration lodged within three months of incorporation; the books monthly; VAT returns on the authority's cycle.
- What's included
- Corporate tax registration and the VAT decision on your figures
- A chart of accounts, invoices and a reconciled bank feed
- Returns and year-end accounts on one calendar
This is for you if
- Your licence was issued recently, so the three-month corporate tax registration window is running and there is no bookkeeping yet.
- You are not sure whether your taxable supplies are near AED 375,000, or whether voluntary registration above AED 187,500 would suit you.
- You want corporate tax registration lodged on EmaraTax within its deadline and the first tax period understood.
- You want a monthly rhythm you can run the business on, not a year-end scramble.
This may not be the right route if
- You want tax advice on your home-country position; that belongs with an adviser there.
- You expect the firm to sign an audit opinion; audits are signed by a registered auditor.
- You would rather keep the books yourself and only want the filings done; that is a narrower engagement we can scope.
At a glance
- Indicative cost
- The FTA charges nothing for corporate tax registration, and the auditor's fee, where one is engaged, is theirs. The Velarozone service fee for registration, bookkeeping and returns is stated in your engagement letter before the first month.
- Timing
- Corporate tax registration lodged within three months of incorporation; the books monthly; VAT returns on the authority's cycle.
- What's included
- Corporate tax registration and the VAT decision on your figures
- A chart of accounts, invoices and a reconciled bank feed
- Returns and year-end accounts on one calendar
What this service includes
- Corporate tax registration prepared and lodged on EmaraTax within three months of incorporation; the first tax period confirmed.
- The VAT position assessed against the AED 375,000 and AED 187,500 thresholds, and registration lodged when it is due or elected.
- A chart of accounts, invoice templates and a monthly bank reconciliation set up for the activity.
- Monthly bookkeeping and the VAT returns on the authority's cycle.
- Year-end accounts, and the file prepared for an auditor where the licence requires one.
- One calendar for the filings, held with the licence and visa renewals.
What it does not include
- Statutory audit, which is performed and signed by a Ministry of Economy registered auditor.
- Home-country tax advice.
- Any promise about the outcome of an authority review.
Process
How the work is sequenced
Each stage has its own dependencies (activity approvals, document legalisation, authority processing, and bank review), and we report progress against them rather than against one overall date.
- 01
Registration
Corporate tax registration lodged; the VAT position decided on the figures.
- 02
Set-up
Chart of accounts, invoices and the bank feed configured for the activity.
- 03
Monthly
Bookkeeping and reconciliation; VAT returns on the authority's cycle.
If you rely on the free-zone rate, its conditions are tested every tax period, and the records are what prove them.
Prefer to start in writing? Send the details through the contact form.
Start with a structure assessment
In an initial consultation you receive a plain-language decision summary, a document-preparation list, and the next actions for your situation. Current figures are confirmed within your adviser-reviewed route comparison.
The first year
What starts when the licence is issued
The dates are the authority's; the records are yours to build before they arrive.
The obligations that begin with a first UAE licence, and what each needs from the books.
Corporate tax registration
- What triggers it
- Incorporation, establishment or recognition; apply within three months
- What the books must show
- Trade licence, constitutional documents, ID of owners above 25% and signatories
First tax period
- What triggers it
- The period the authority assigns from registration
- What the books must show
- Income, expenses and adjustments computable from records
VAT registration
- What triggers it
- Taxable supplies and imports above AED 375,000, or a voluntary election above AED 187,500
- What the books must show
- Monthly taxable supplies, showing when AED 375,000 was passed or expected within 30 days
VAT returns
- What triggers it
- Registration, on the authority's cycle
- What the books must show
- Output and input VAT per invoice, reconciled to the bank
Year-end accounts
- What triggers it
- The financial year end
- What the books must show
- A trial balance that closes, with supporting schedules
Audit, where required
- What triggers it
- The free zone or licence type
- What the books must show
- Records an auditor can test
| Obligation | What triggers it | What the books must show |
|---|---|---|
| Corporate tax registration | Incorporation, establishment or recognition; apply within three months | Trade licence, constitutional documents, ID of owners above 25% and signatories |
| First tax period | The period the authority assigns from registration | Income, expenses and adjustments computable from records |
| VAT registration | Taxable supplies and imports above AED 375,000, or a voluntary election above AED 187,500 | Monthly taxable supplies, showing when AED 375,000 was passed or expected within 30 days |
| VAT returns | Registration, on the authority's cycle | Output and input VAT per invoice, reconciled to the bank |
| Year-end accounts | The financial year end | A trial balance that closes, with supporting schedules |
| Audit, where required | The free zone or licence type | Records an auditor can test |
The guide
UAE corporate tax for new businesses
Registration, the first tax period and what taxable income is not, explained in full.
Read the guide
Every route is planned against how the business will actually operate in the UAE.
After the licence
What you may also need
The four services most founders in this situation ask about next, each on its own page.
Visas & PRO services
Residence visas for owners, staff and family, plus the MOHRE labour files, medicals and Emirates ID renewals that keep a licence and its people in good standing. A sponsored visa lasts 1, 2 or 3 years; approval stays with the authority.
→UAE bank account setup
A bank-ready file built around your ownership, activity and expected transactions, matched to the bank whose risk appetite suits your profile. The bank alone decides approval and timing.
→Accounting & tax
Monthly bookkeeping, VAT and corporate-tax filings and year-end accounts, with statutory audit signed by a registered auditor.
→Legal services
Contracts, corporate documents, disputes and regulatory matters, advised by lawyers licensed to practise in the UAE and named in the engagement letter.
→
Next decision
Related reading
Questions
Frequently asked
- Do I have to register for VAT straight away?
- Not until taxable supplies and imports exceed AED 375,000, or you expect them to within the next 30 days. Below that you may register voluntarily once taxable supplies, imports or taxable expenses pass AED 187,500 in the previous 12 months, or are expected to within the next 30 days. Whether voluntary registration suits you depends on who your customers are and whether you incur VAT on your costs; we set it out on your figures.
- When does corporate tax start?
- Registration is due within three months of incorporation, establishment or recognition under FTA Decision No. 3 of 2024, and that includes free zone companies. The first tax period is the one the FTA assigns. Late applications attract administrative penalties under Cabinet Decision No. 75 of 2023. The rate and thresholds are the authority's; what the books decide is how much of your income is taxable and what can be deducted.
- Do I need an auditor?
- Some free zones and licence types require audited financial statements at renewal, and the free-zone corporate tax rate has its own conditions. Where an audit is required it is performed by a registered auditor under its own engagement; we prepare the records it tests.
- Can I do the bookkeeping myself?
- Yes, and some founders do. What we would still ask is that the chart of accounts, the invoice format and the reconciliation are set up properly at the start, because the filings are prepared from them either way.
- What does it cost?
- The scope is stated before the first month: registration, monthly bookkeeping, returns and year end. The Velarozone service fee is itemised in your engagement letter. FTA corporate tax registration is free of charge, and the auditor's fee, where one is engaged, is theirs.
Sources
- Federal Tax Authority: corporate tax
- Federal Tax Authority: VAT registration thresholds
- Federal Tax Authority: VAT legislation and guides
- Ministry of Finance: corporate tax in the UAE
Regulations, fees, and eligibility can change. Every regulatory statement is re-checked before publication and dated above.
Legal notes and scope
Velarozone provides setup and operational-readiness coordination. This page is general information, not legal, tax, immigration, or banking advice.
General information drawn from the CBUAE Rulebook, including the Retail Payment Services and Card Schemes Regulation (C 15/2021), and Cabinet Resolution No. (134) of 2025 as published, not legal or tax advice. Rules and guidance change, so confirm the current text and each institution's own requirements before you submit.
UAE corporate tax and VAT deregistration depend on your specific facts, including whether returns and liabilities are up to date. Home-country obligations may also apply. We coordinate with your tax adviser and do not give a tax opinion.