Setting up a company in the UAE is now very different from “the old days” of just getting a license and opening a bank account. With the introduction of corporate tax, stronger compliance rules, and closer monitoring by regulators, the first 90 days after incorporation are now critical.

In this guide, we’ll walk through exactly what newly incorporated UAE companies must do in their first 90 days across corporate tax registration, VAT, accounting, licensing, staffing, and compliance – so you stay on the right side of the law and focus on growth.

The First 90 Days in the UAE: Why They Matter More Than Ever

New corporate tax reality: why “set up and relax” no longer works

Since the UAE introduced federal Corporate Tax (CT), most UAE companies are now considered “taxable persons” by default. The standard regime is:

• 0% on taxable income up to AED 375,000

• 9% on taxable income above AED 375,000

For many new founders, this is a big culture shift. The UAE is still tax-friendly, but it’s no longer entirely “tax-free”. You need proper records, systems, and registrations – and many of these start within the first 90 days.

Mainland vs free zone vs financial free zone: different rules, same urgency

Whether you’re in:

• Mainland (DED)

• A standard free zone (e.g., DMCC, RAKEZ, IFZA, SHAMS)

• A financial free zone (e.g., DIFC, ADGM)

you’ll face:

• A Corporate Tax registration obligation, with strict deadlines for new juridical persons (most new companies must register within 3 months of incorporation)

• Ongoing reporting requirements

• Local compliance (UBO, ESR, AML, licence renewals)

So the first 90 days are about getting these foundations right before mistakes become expensive due to hefty fines.

Step 1: Get Your House in Order – Corporate Tax Registration with the FTA

This is the piece you rightly flagged as missing – and it’s now the number one priority.

Who must register for UAE Corporate Tax (and who is exempt)?

In simple terms, corporate tax applies to most:

• Limited liability companies (LLCs)

• Free zone companies

• Branches of foreign companies

• Certain unincorporated partnerships and individuals with business income above specified thresholds

Some entities (like government bodies, certain natural resource businesses, and qualifying investment funds) may be exempt, but most new commercial companies are in scope, even if they’re making a loss in the first year.

Corporate tax registration deadlines for newly incorporated UAE companies

A company incorporated in Dubai on 10 June 2025 must submit its Federal Tax Authority (FTA) Corporate Tax registration within three months of the date of incorporation, i.e. by 10 September 2025 (since the rule is “within 3 months from the date of incorporation or recognition” for resident juridical persons established on/after the effective date).

Missing this can lead to administrative penalties of AED 10,000 and red flags in your tax profile.

What information and documents you need to register

Typically, for a newly incorporated company you’ll need:

• Trade license and incorporation documents

• Articles of association / memorandum

• Details of shareholders and directors

• Financial year-end (e.g., 31 December)

• Contact details and authorised signatory information

This is where it helps to think strategically: your chosen financial year, group structure, and free zone status will all influence your corporate tax position going forward.

How corporate tax interacts with your accounting, free zone status, and group structure

Corporate Tax is calculated based on your adjusted accounting net profit, following accepted standards such as IFRS.

That means from day one you should:

• Align your chart of accounts with CT categories (deductible vs non-deductible, related party transactions, etc.)

• Keep clear intercompany and related party documentation

• If you’re in a free zone, understand whether you qualify for a 0% regime on qualifying income and what substance conditions you must meet

A good advisor can design your accounting + tax setup together, rather than treating them as separate tasks.

Step 2: VAT Positioning – Decide Early, Avoid Penalties Later

Mandatory vs voluntary VAT registration thresholds in the UAE

The standard rules today are:

• Mandatory VAT registration: when taxable supplies & imports exceed AED 375,000 in 12 months

• Voluntary registration: from AED 187,500

Even if you’re just starting, you must monitor your pipeline and contracts – some startups cross the threshold much faster than expected.

When a new company should register for VAT (even if not yet at AED 375,000)

Many B2B startups in the UAE choose to register early because:

• Their clients expect a TRN for input tax recovery

• Being VAT-registered signals seriousness and structure

• It forces discipline in invoicing and record-keeping

The first 90 days are the perfect moment to decide:

• Are you planning to hit AED 375,000 within 12–18 months?

• Are your customers VAT registered?

• Do you have material VAT-bearing expenses that you’d like to recover?

Practical VAT actions in the first 90 days

If VAT registration is appropriate, your first 90 days should include:

• VAT registration via the FTA portal and obtaining your TRN

• Updating invoice formats to meet tax invoice requirements

• Setting up your accounting system to code supplies correctly

• Creating a simple VAT compliance calendar (return deadlines, payment dates)

Step 3: Build a Robust Accounting & Reporting Framework from Day One

This is where most founders are tempted to cut corners – but it’s exactly what Corporate Tax and VAT depend on.

Choosing your financial year, chart of accounts, and accounting policies

Early decisions to make:

• Financial year-end (most choose 31 December, but alignment with group companies or investor needs may matter)

• A chart of accounts designed for:

  • Management reporting

  • Corporate Tax adjustments

  • VAT classifications

• Clear expense policies (what is reimbursable, how to document it, etc.)

Monthly bookkeeping, reconciliations, and audit readiness

Within the first 90 days, you should have:

• Bank reconciliations set up

• Supplier and customer ledgers under control

• A folder (digital or system) for supporting documents (contracts, invoices, approvals)

• A clear view of cash burn and runway

Many free zones and banks expect audited financial statements for license renewal, shareholder changes, or loan applications, so having clean accounts from month 1 is a big advantage.

With Theta 7 Accountants, your month-end bookkeeping, reconciliations, and management reports are handled by professionals, giving you investor-grade numbers and a clear audit trail if you’re ever reviewed by regulators or auditors.

How accounting supports Corporate Tax, VAT, ESR and reporting

Good accounting isn’t just “for the accountant” – it directly supports:

• Corporate Tax – by giving accurate profit figures and add-backs

• VAT – by clearly separating taxable, zero-rated, and exempt supplies

• ESR – by evidencing that real activities happen in the UAE

• UBO & AML – by providing traceability of flows if questioned

Our approach is simple: one integrated accounting system that serves all regulatory requirements. That means fewer surprises, fewer backdated fixes, and lower risk when authorities ask questions.

Step 4: Licensing, Establishment Cards, and Activity-Specific Permits

Trade license activation and post-licensing formalities

Once your trade license is issued, the first 30–60 days usually involve:

• Activating the license in the relevant authority portals

• Opening your corporate bank account

• Arranging any required office lease or flexi-desk confirmations

• Linking your license to immigration and labour systems (where applicable)

Immigration file, establishment card, and labour file

To hire and sponsor staff, your company will normally need:

• An immigration file with the relevant authority

• An establishment card (for mainland / some free zones)

• A labour file (MOHRE) if you are a mainland employer

Without these, you can’t issue visas or labour contracts – so they’re core items for the first 90 days if you plan to grow a team.

Regulated sectors: extra approvals you should not ignore

If you’re operating in sectors like:

• Healthcare

• Education

• Food & beverage

• Media and advertising

• Financial services / fintech

You may need special permits from municipalities, ministries, or regulators. These are best identified before you start trading, to avoid surprise shutdowns or fines.

Step 5: Staffing, HR, and Payroll Compliance in the UAE

MOHRE / free zone HR setup and employment contracts

For mainland entities, you’ll interact with MOHRE, while free zones typically run their own HR and visa portals.

In your first 90 days, you should:

• Draft locally compliant employment contracts

• Understand probation, notice, and leave entitlements under UAE Labour Law

• Decide on your grading and salary structure

WPS-compliant payroll and basic HR policies you must document

Most employers must pay salaries through the Wage Protection System (WPS), which means:

• Paying through UAE bank channels

• On-time salary payment recorded in the system

• Matching employment contracts and payroll records

Document at least basic HR policies on:

• Working hours and overtime

• Leave and public holidays

• Remote work rules (if any)

• Reimbursements and allowances

Visa and Emirates ID journey for your first hires

Your first visas are typically processed within those first 90 days:

• Entry permit

• Medical fitness test

• Biometrics for Emirates ID

• Visa stamping / e-visa issuance

Small mistakes (wrong profession, missing documents, expired medicals) can cause frustrating delays, which is why many companies prefer to outsource visa handling.

Step 6: Core Regulatory Compliance – UBO, ESR, AML & Data Governance

UBO declarations and registers for new UAE entities

Most UAE entities must identify and report their Ultimate Beneficial Owners (UBOs) to their licensing authorities.

Within the first 90 days you should:

• Identify any individuals owning 25% or more (directly or indirectly), or otherwise exercising control

• Maintain an internal UBO register

• File UBO details with the relevant authority and keep them updated when ownership changes

Non-compliance can result in fines and even license suspension.

Economic Substance Regulations (ESR) and when they apply

If your company carries out “relevant activities” (like headquarters, distribution, financing, IP, holding company activities, etc.), you may need to:

• File an ESR notification

• Prove that you have adequate substance in the UAE (staff, premises, expenses)

• Submit ESR reports if in scope

Even if ESR does not apply in year 1, it’s wise to design your operating model with future ESR compliance in mind.

AML, KYC, and basic internal controls for higher-risk sectors

If you’re in real estate brokerage, precious metals and stones, corporate services, or other designated non-financial sectors, there are AML/CFT obligations:

• Customer due diligence and KYC

• Monitoring and reporting suspicious transactions

• Staff awareness and internal policies

Even if you’re not in a high-risk sector, implementing simple internal controls in your first 90 days protects against fraud and supports trust with banks and investors.

Partner With Theta 7 Accountants and Secure Your First 90 Days

Don’t leave your first 90 days to chance. Let us handle your corporate tax registration, VAT setup, bookkeeping, payroll, UBO/ESR filings, and full compliance—so you can focus on winning customers and scaling your business.
Book your consultation today and let our experts build a compliant, investor-ready finance system for your UAE company.