Services
Tax, banking and compliance for UAE companies
A licence is the start of a UAE company's obligations. Every company registers for corporate tax with the Federal Tax Authority, registers for VAT once its taxable sales pass the legal threshold, opens a corporate bank account, keeps proper accounts and closes formally if it stops trading. Caliph sets these up with you and keeps the dates in view.
At a glance Fact sheet
- Corporate tax
- 9% on taxable income above AED 375,000, under Federal Decree-Law No. 47 of 2022
- VAT
- 5%, with registration mandatory above AED 375,000 of taxable supplies in 12 months
- Tax authority
- Federal Tax Authority, through the EmaraTax portal
- Bank accounts
- Opened by banks licensed by the Central Bank of the UAE, after their own due diligence
- Tax records
- Corporate tax records are kept for seven years after the end of the tax period
Overview
Most founders treat the trade licence as the finish line. In practice it starts a set of obligations that run for as long as the company exists. The Federal Tax Authority expects a corporate tax registration from every company, including free zone companies and companies that have not earned anything yet. Banks ask detailed questions before they open an account. And the day you decide to stop, the company has to be closed step by step.
None of this is complicated when it is done in order. It becomes expensive when a registration is forgotten, when the books are rebuilt from bank statements at the end of the year, or when a company is left dormant with visas and tax registrations still open. The authorities apply administrative penalties for late registrations and late returns, so the dates matter as much as the forms.
Caliph has formed more than 3,000 companies since 2020, and the consultant who handled your licence stays with you afterwards. We prepare the tax registrations with you, put the bank file together, arrange contract drafting with qualified legal professionals and, if it comes to that, manage the closure. For tax positions and returns we work alongside your accountant or tax adviser.
Pages in this section
What to keep in order after the licence
Register for corporate tax early
Every company needs a corporate tax registration number, whether or not it expects to pay tax. A newly formed company has three months from incorporation to apply.
Watch your turnover for VAT
VAT registration depends on your taxable sales and imports, measured over a rolling 12 months. Check the figure every month so the threshold never surprises you.
Keep books from the first invoice
Tax returns start from your financial statements. Invoices, contracts and bank statements filed as you go make every later step easier.
Give the bank a complete picture
A bank decides on your account once it understands the owners, the business and where the money comes from. A clear file answers those questions before they are asked.
Put agreements in writing
Shareholder terms, client contracts and employment contracts written properly at the start prevent most disputes later.
Close what you no longer use
A company that stops trading still has a licence, visas and tax registrations. Formal liquidation ends them and leaves the owners with a clear record.
How Caliph supports you after setup
Compliance check at handover
When your licence is issued, your consultant lists what applies to your company: tax registrations, bank account, contracts and renewal dates.
Tax registration
We prepare the corporate tax application on EmaraTax with you, and the VAT application when your turnover requires it or you choose to register.
Bank file
We assemble the company documents, the owners' details and the business profile a bank asks for, then help you answer its follow-up questions.
Contracts and records
We arrange drafting or review of your key agreements with qualified legal professionals and agree with you how the books will be kept.
Dates on one calendar
Licence renewal, tax return deadlines and visa expiries sit on one schedule, and your consultant reminds you ahead of each one.
Good to know
- The information in this section is general. Your tax adviser confirms how the rules apply to your company before you rely on it.
- Free zone companies are inside the corporate tax system. A favourable rate depends on conditions that have to be met every year, so it is never automatic.
- Rules differ by activity, emirate and authority. Your Caliph consultant confirms what applies to you.
Questions people ask
What does a new UAE company have to do after getting its licence?
Register for corporate tax with the Federal Tax Authority, open a corporate bank account, set up bookkeeping and check whether VAT registration applies. Companies with staff also complete the establishment card, visas and labour contracts. Your consultant gives you the list for your licence type at handover.
Does a company with no income still need to register for corporate tax?
Yes. Registration follows from the company existing as a taxable person, and income plays no part in that test. A company with no revenue, or with taxable income below AED 375,000, still registers and files a return for each tax period, even when the tax due is nil.
Do I need an accountant for a small company?
You need accounts accurate enough to support a tax return, and records kept for the period the law requires. Many small companies use an outside bookkeeper for this. Caliph helps you set up the arrangement, and your accountant or tax adviser prepares the figures.
Can I open a business bank account before the licence is issued?
No. A bank opens a corporate account for a company that already exists, so it asks for the issued licence and the constitutional documents first. What you can do early is prepare the business profile and the owners' documents, so the application is ready when the licence arrives.
What happens if I stop using my company without closing it?
The licence expires but the company does not disappear. Visas, the establishment card, the tenancy and the tax registrations stay open, returns are still expected and penalties can build up. Formal cancellation or liquidation is the only way to end those obligations.
Reviewed by Caliph Business Solutions on . Rules differ by activity and by authority. Your Caliph consultant confirms what applies to you.
Ready to establish your company in the UAE?
Book a free consultation. Tell us what you want to open and we come back with the route, the documents and the cost.
- VisitHapag-Lloyd Building, Port Saeed, Deira, Dubai. P.O. Box 8070
Open in Google Maps