United Arab Emirates

We keep the books of UAE companies owned from India and prepare their corporate tax and VAT returns. We have no office in the UAE. Our team in India does the work. Licensed UAE firms handle company formation, the trade licence, visas and the audit.

Checked against the sources on 14 November 2026. Each figure links to the authority that published it.

United Arab Emirates at a glance

Corporate tax
0% on taxable income up to AED 375,000 and 9% above it1
Small businesses
Relief for revenue of AED 3 million or less, for tax periods ending on or before 31 December 20292
VAT
5%. Registration is compulsory above AED 375,000 of taxable supplies and voluntary from AED 187,5003
Ownership
A mainland company can be fully foreign-owned in most activities4
Corporate tax return
Filed and paid within nine months of the end of the tax period5
Audit
Required above AED 50 million of revenue, and for every Qualifying Free Zone Person6
Authorities
The Federal Tax Authority, the Ministry of Finance, and the emirate or free zone that licenses the company

Checked against the sources on 14 November 2026.

Talk to us about the UAE

Call or WhatsApp +91 77606 86468

connect@fidgenx.com

What we do in the UAE

  • Keep the books and prepare the annual financial statements
  • Register the company for corporate tax and prepare the yearly return
  • Prepare VAT returns
  • Arrange the attestation of company documents for use in the UAE
  • Prepare the ODI and APR filings in India when the shareholder is Indian

What a UAE company files each year

FilingWithWhen
Corporate tax return and paymentFederal Tax AuthorityWithin nine months of the end of the tax period. A company with a 31 December year end files by 30 September.5
Audited financial statementsKept for the Federal Tax AuthorityRequired when revenue exceeds AED 50 million, and for every Qualifying Free Zone Person, for tax periods that begin on or after 1 January 2025.6

How corporate tax works

Corporate tax applies to financial years that began on or after 1 June 2023. The rate is 0% on taxable income up to AED 375,000 and 9% above it.1

A resident business with revenue of AED 3 million or less can elect for Small Business Relief, and is then treated as having no taxable income for that period. The relief is available for tax periods ending on or before 31 December 2029.2

Free zone companies

A company in a free zone can pay 0% on its qualifying income if it meets the conditions of the free zone regime. Income outside the regime is taxed at 9%. One condition is a limit on other income, which must stay below 5% of total revenue or AED 5 million, whichever is lower. A company that fails the conditions loses the regime for at least five years.7

A Qualifying Free Zone Person must also have audited financial statements.6

If the shareholder is in India

A UAE company owned by an Indian company or resident is an overseas direct investment under FEMA. The bank needs Form FC before the first remittance, and an Annual Performance Report (APR) is due by 31 December each year.8, 9

The APR is based on audited financial statements when the Indian investor controls the company.9 That holds for a small mainland company too, even though its revenue is far below the AED 50 million level at which the corporate tax rules ask for an audit.

The Indian steps are set out on our page for Indian businesses with a company abroad.

Questions we are asked

Can an Indian company own all of a UAE mainland company?

In most activities, yes. The Commercial Companies Law no longer requires a UAE national to hold a majority, apart from activities of strategic impact.4

Does the VAT threshold apply to a business based outside the UAE?

No. A foreign business that makes taxable supplies in the UAE registers whatever its turnover.3

Sources

  1. UAE Government portal, Corporate tax. Page updated 28 October 2026.
  2. UAE Ministry of Finance, Extension of Small Business Relief for corporate tax purposes until 31 December 2029. Announcement, 7 August 2026.
  3. Federal Tax Authority, Registration for VAT.
  4. UAE Government portal, Full foreign ownership of commercial companies.
  5. Federal Tax Authority, Submission of corporate tax returns and settlement of liabilities within nine months from the end of the tax period.
  6. UAE Ministry of Finance, Ministerial Decision No. 84 of 2025 on Audited Financial Statements.
  7. UAE Ministry of Finance, New decisions relating to corporate tax for free zones. Announcement, 7 June 2023.
  8. Reserve Bank of India, Foreign Exchange Management (Overseas Investment) Directions, 2022. A.P. (DIR Series) Circular No. 12, 22 August 2022.
  9. Reserve Bank of India, Foreign Exchange Management (Overseas Investment) Regulations, 2022. Notification No. FEMA 400/2022-RB, 22 August 2022.