The First 90 Days After Company Formation in Dubai

• 21 October, 2026
• By the Exiloz tax team
• Business Setup

Last reviewed 21 October 2026 by the Exiloz tax team against the UAE legislation in force on that date. Tax law moves — confirm any figure against tax.gov.ae before you act on it.

The clock starts on incorporation day

Founders treat the licence as the finish line, but for tax it is the starting gun. Corporate Tax registration, the beneficial owner filing and the VAT threshold test all start running from incorporation. The first month's books then decide how hard year one becomes. Company formation and setup works best when it covers the first 90 days after it.

None of these tasks is difficult on its own. They are easy to leave until someone asks, and by then some are already late. This guide covers the three deadlines, a worked calendar, the first financial year, the opening books and the bank account. It is written for a Dubai mainland company, though most points apply in free zones as well.

What deadlines start after company formation in Dubai?

Three deadlines run from incorporation. Corporate Tax registration is due within three months, under FTA Decision No. 3 of 2024. The beneficial owner register must reach the licensing authority within 60 days of licensing under Cabinet Decision No. 109 of 2023.

VAT registration becomes mandatory once taxable supplies pass AED 375,000 over 12 months, or will within 30 days. Late Corporate Tax registration costs AED 10,000, and beneficial owner breaches can cost up to AED 100,000. Our guide to VAT registration for new companies explains both threshold tests in detail.

Quick Answer

A new Dubai company must register for Corporate Tax within three months and file beneficial owner details within 60 days. VAT registration follows once the AED 375,000 test is met.

Must a new company register for Corporate Tax before it trades?

Yes, because registration is not tied to trading or profit. Every resident company, unless legally exempt, is a taxable person under Federal Decree-Law No. 47 of 2022. The three-month clock runs even if no invoice has been issued.

Take an illustrative mainland LLC incorporated and licensed on 15 October 2026. Its beneficial owner filing is due by 14 December 2026, and its Corporate Tax registration by 15 January 2027. A company spending its first four months fitting out and hiring can miss the registration deadline before selling anything at all.

Quick Answer

Every new UAE company must register for Corporate Tax within three months of incorporation, whether or not it trades. Late registration carries a fixed AED 10,000 penalty from the FTA.

How long can the first financial year be?

Between 6 and 18 months, under the FTA's Public Clarification on the first tax period. That choice fixes the first Corporate Tax period and the date of the first return. The first return is then due nine months after the period ends.

For the LLC incorporated on 15 October 2026, a first year ending 31 December 2027 runs about 14 and a half months. The first return would then be due by 30 September 2028. Record the chosen year-end in a board resolution and confirm it when registering for tax.

Quick Answer

Any new UAE company's first financial year can run from 6 to 18 months. That choice sets the first Corporate Tax period and a first return due nine months later.

What should the first set of books separate?

Share capital, shareholder loans and pre-incorporation costs, because those are the items most often muddled in year one. Ministerial Decision No. 114 of 2023 sets the accounting standard to use. It requires IFRS, or IFRS for SMEs where revenue does not exceed AED 50 million.

Licence fees, visa costs and fit-out invoices paid before the bank account opened often sit on a founder's personal card. Collect those invoices now and record them against the company, with a shareholder loan on the other side. They can then be deducted where allowed.

Quick Answer

A new Dubai company's first books should separate share capital, shareholder loans and pre-incorporation costs. Record founder-paid setup costs as company expenses, with matching shareholder loans on the other side.

Why does the bank account matter for year one?

Because every week without a corporate account means company costs paid from personal cards. Corporate account opening often takes weeks, since the bank runs its own checks on the owners, the business and the source of funds. Each personal payment must later be traced and recorded.

Start the application the day the licence arrives, with the memorandum, licence and passports ready. Once the account is open, run every single company payment through it. Our guide to opening a corporate bank account in Dubai lists what UAE banks usually ask for.

Quick Answer

Apply for a UAE corporate bank account on the same day the licence arrives. Personal-card payments for company costs must all later be traced, which slows the first-year accounts considerably.

Frequently Asked Questions

Main Takeaways

A new Dubai company must register for Corporate Tax within three months and file beneficial owner details within 60 days. VAT registration follows once the AED 375,000 test is met, with no free first year. Choose a first financial year of 6 to 18 months deliberately. Open the corporate bank account and the books properly from the very first day.

Treat Incorporation Day as Day One of Compliance

The trade licence starts several clocks at once, and none of them waits for the first sale. Corporate Tax registration, the beneficial owner filing and the VAT test run in parallel from incorporation. The first financial year and the opening books shape every later Corporate Tax return. Getting them right early costs far less than fixing them later in year two.

On incorporation day, diary the three deadlines and choose the first financial year in a board resolution. Apply for the bank account as soon as the licence arrives, and collect every founder-paid invoice. Open the books on the right standard before the first transaction. Exiloz can handle the formation and the first 90 days of compliance as one job.

Sources & References