A new free zone company incorporated on or after 1 March 2024 must register for corporate tax on the FTA's EmaraTax portal within three months of its date of incorporation, establishment or recognition (FTA Decision No. 3 of 2024, Article 3) — and registration is mandatory even if the company expects to pay 0% as a Qualifying Free Zone Person. Missing the deadline is a fixed AED 10,000 administrative penalty.
TL;DR
- Register on EmaraTax within 3 months of incorporation (FTA Decision No. 3 of 2024, Art. 3) — 0% free zone companies included.
- Late registration is a fixed AED 10,000 administrative penalty (Cabinet Decision No. 75 of 2023).
- QFZP conditions met = 0% on qualifying income; conditions fail = 9% on taxable income above AED 375,000.
- First corporate tax return is due within 9 months of your first financial year-end.
- Registration is free — you only pay a tax agent, or the penalty if you miss the window.
How to register a new free zone business for corporate tax
Every free zone company is a taxable person under Federal Decree-Law No. 47 of 2022 and must register for corporate tax through the FTA's EmaraTax portal using UAE Pass — regardless of profit, revenue, or whether it qualifies for the 0% free zone rate. For a company incorporated on or after 1 March 2024, the deadline is three months from incorporation, establishment or recognition (FTA Decision No. 3 of 2024, Article 3). The late-registration penalty is a fixed AED 10,000 under Cabinet Decision No. 75 of 2023, even when zero tax is owed.
Most new free zone founders skip this step because they assume free zone means no tax. The reality in 2026 is that free zone companies pay 0% only on qualifying income and 9% on everything else above the AED 375,000 threshold — and the registration clock starts at incorporation, not at first revenue.
Who must register, and by when
Free zone company incorporated on or after 1 March 2024
- Registration deadline: Within 3 months of incorporation / establishment / recognition
- Source: FTA Decision No. 3 of 2024, Art. 3
Company licensed before 1 March 2024
- Registration deadline: Staggered by first licence month — all those 2024 deadlines have now passed; register immediately
- Source: FTA Decision No. 3 of 2024, Art. 2
Foreign-incorporated company managed and controlled from the UAE
- Registration deadline: Within 3 months of the end of its financial year
- Source: FTA Decision No. 3 of 2024, Art. 3
Natural persons (freelancers) with turnover above AED 1m
- Registration deadline: By 31 March of the year following the year they exceeded the threshold
- Source: FTA Decision No. 3 of 2024, Art. 4
The three-month clock does not pause for licensing delays, bank account opening or first revenue. It also does not interact with VAT: corporate tax and VAT registration are separate obligations, and completing one does not cover the other.
How to register: step by step
- Create an EmaraTax account with UAE Pass. One account per entity; a free zone company registers as a legal entity.
- Select Corporates, then Corporate Tax Registration. Choose the entity type matching your free zone licence (FZ-LLC, branch, etc.).
- Enter core details: legal name, licence number, licence issue and expiry dates, incorporation date, and the free zone authority's details.
- Declare your business activities. List all licensed activities. Accuracy here protects your later Qualifying Free Zone Person assessment — do not stretch the description.
- Choose your financial year. Most free zone companies default to a 12-month Gregorian year. Your first filing deadline is 9 months after the first financial year-end.
- Upload documents: valid trade licence, memorandum or articles of association, and Emirates ID and passport of the authorised signatory.
- Declare related parties and connected persons where applicable — usually none for a brand-new company.
- Submit and await your Tax Registration Number (TRN). Approval typically takes a few business days; the TRN arrives by email and appears in your EmaraTax dashboard.
What does it cost?
Registration itself is free — the FTA charges nothing to file. Costs appear only if you engage a tax agent to prepare the submission, or if you miss the deadline: the fixed AED 10,000 administrative penalty under Cabinet Decision No. 75 of 2023. Since 14 April 2025 the FTA waives or refunds this penalty where the first corporate tax return is filed within 7 months of the end of the first tax period (FTA Public Clarification CTP006) — but the reliable path is simply registering on time.
Free zone 0% vs 9%: what decides your rate
Being in a free zone does not make income non-taxable. Under Article 3 of Federal Decree-Law No. 47 of 2022, a Qualifying Free Zone Person (QFZP) pays 0% on qualifying income and 9% on non-qualifying income, provided all of these hold:
- Qualifying income as defined by Cabinet Decision No. 55 of 2023, subject to de minimis rules
- Adequate substance in the free zone (assets, employees, operating expenditure)
- No excluded activities beyond the de minimis threshold (5% of total revenue or AED 5 million, whichever is lower)
- Audited financial statements (mandatory for QFZP status)
- No election to be taxed at the standard 9% rate
Fail any condition and the whole company is taxed at 9% on taxable income above AED 375,000 for five years from the failure year. Our corporate tax registration service assesses QFZP eligibility before you file.
After registration: your ongoing calendar
First corporate tax return
- Deadline: Within 9 months of your first financial year-end
- Note: File on EmaraTax even at nil income
Audited financial statements
- Deadline: Annually, required for QFZP status
- Note: Keep free zone substance documentation
VAT registration
- Deadline: Separate duty at AED 375,000+ taxable supplies
- Note: See VAT registration
Accounting records
- Deadline: Keep 7 years
- Note: Corporate tax and VAT retention run in parallel
Common mistakes free zone founders make
- Assuming free zone means no registration. Every taxable person registers, 0% or not.
- Waiting for first revenue. The 3-month clock runs from incorporation, not the first invoice.
- Overstating activities. Broad or inaccurate activity declarations can break QFZP treatment later.
- Treating VAT as covered. Corporate tax and VAT are independent registrations with independent triggers.
- Letting the audit lapse. QFZP status requires audited financials every year, not just the first.
FAQ
Do free zone companies need to register for corporate tax in 2026?
Yes. Every free zone company is a taxable person and must register on EmaraTax within 3 months of incorporation under FTA Decision No. 3 of 2024, even if it will pay 0% as a Qualifying Free Zone Person.
What is the penalty for late corporate tax registration?
A fixed AED 10,000 administrative penalty under Cabinet Decision No. 75 of 2023, regardless of whether any tax is payable — waived or refunded where the first return is filed within 7 months of the first tax period ending (FTA Public Clarification CTP006).
Does corporate tax registration cost anything?
Registration on EmaraTax is free. You pay only if you engage a tax agent to prepare the filing, or the AED 10,000 penalty if you miss the 3-month deadline.
Do I pay 9% on all income if I am in a free zone?
No. A Qualifying Free Zone Person pays 0% on qualifying income and 9% on non-qualifying income above AED 375,000. Fail the QFZP conditions and the standard rate applies to all taxable income above the threshold for five years.
Is corporate tax registration the same as VAT registration?
No — separate obligations with separate triggers. Corporate tax registration is mandatory for all companies; VAT registration triggers at AED 375,000 of taxable supplies.
When is my first corporate tax return due?
Within 9 months of your first financial year-end. A company with a 31 December 2026 year-end files by 30 September 2027, even if it made no profit.
One last thing
If your free zone company is already past the 3-month mark without a TRN, treat this as today's task: register now and request the penalty waiver in the same submission. Prompt voluntary compliance is what the FTA's waiver decisions reward — the window narrows the longer you wait.
Related guides
- How much does corporate tax filing cost in the UAE in 2026?
- Corporate tax for technology and software companies in the UAE
- Corporate tax for dental clinics in the UAE
- Corporate Tax Registration Service
- Corporate Tax Filing Service
Official sources: FTA Decision No. 3 of 2024 on registration timelines — https://tax.gov.ae/en/content/federal.tax.authority.decision.no.3.of.2024.aspx · Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses — https://uaelegislation.gov.ae/en/legislations/2832 · FTA corporate tax portal — https://tax.gov.ae/en/corporate-tax.aspx · FTA Corporate Tax Registration service page — https://tax.gov.ae/en/services/corporate.tax.registration.aspx
