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Beyond the licenceJune 20265 min read

What do I actually owe after the licence?

Not one number, but a set of standing duties. The one that bites is corporate tax registration: mandatory even at zero tax, and a missed deadline costs a fixed AED 10,000.

Map what you will owe

Tax is not optional

Registration is mandatory, even if the company never pays a dirham.

A deadline nobody flagged

Miss the registration window and a fixed penalty is owed for being late.

Different triggers

VAT, books, UBO and renewal each land on their own timeline, not on every company.

The quote stopped early

Real cost is the company over its life, not day-one licence.

Why you are right to ask

The trade licence is sold as the finish line. It is the starting line.

The licence is what your setup fee buys, so for many firms the relationship ends the day it is issued. The company you now own does not. It is a live legal entity with standing duties to the tax and licensing authorities, several carrying fixed deadlines and real penalties. Asking what those duties are while you are still choosing, rather than learning them from a fine months later, is the most useful due diligence a founder can do. Almost nobody does it. Noticing the gap is to your credit.

What actually continues

Five obligations, not one invoice.

There is no flat figure: the duties are several, they trigger differently, and not all apply to every company. Below is their honest shape, enough to budget against. Which ones land on you, and what each costs, is what a conversation settles.

1
Corporate tax registration and filing
Registration with the Federal Tax Authority, then an annual return. Both apply even at zero tax, including under Small Business Relief. Universal, and the one with the deadline that bites.
2
VAT, where it applies
Once taxable turnover crosses AED 375,000 over a rolling 12 months, VAT registration is mandatory: 5% charged, periodic returns, compliant invoicing. Below that line it may not apply. Triggered by turnover, not the licence.
3
Bookkeeping to an FTA standard
Proper books to an FTA-acceptable standard, retained for the required period. Every filing is only as accurate as the records beneath it. A recurring duty, not a one-off form.
4
UBO records kept current
Ultimate Beneficial Owner records, broadly the people holding 25% or more, kept current as ownership changes. Maintained, not filed once and forgotten.
5
Annual licence renewal
The trade licence and any office or desk tied to it renews yearly. An unrenewed licence does not quietly expire. It attracts penalties and blocks what depends on it, including banking and visa renewals.
How the five sort by triggerOne is universal. One waits on turnover. One recurs yearly. One has retired.
Your company Universal always on Corporate tax registration + filing Bookkeeping · UBO upkeep Turnover-driven VAT, once turnover crosses AED 375,000 / rolling 12 months Annual deadline Licence + workspace renewal, banking and visas depend on it

Not on the map: ESR. Economic Substance Regulations were discontinued for financial years ending after 31 December 2022 by Cabinet Decision No. 98 of 2024, so they add no filing today.

Universal, every companyTurnover-drivenAnnual deadline
The consequence

One missed deadline, one fixed penalty.

If you take one figure from this page, take this one. Failing to register for corporate tax by the deadline carries a fixed administrative penalty, owed for being late rather than for any tax due. A company that will ultimately pay nothing can still be fined for missing a registration it never knew it had to make. It is the most common avoidable penalty among new UAE companies, and it exists because the licence-only pitch never mentioned the obligation.

AED 10,000 Fixed penalty for late corporate tax registration, owed even when the company owes no tax.

It rarely arrives alone. The fines that stack alongside it:

  • Late VAT returns carry their own fines.
  • Late payment accrues.
  • Books left to a year-end scramble become incorrect filings that invite correction costs.

None are catastrophic alone, but they stack. A year of ignored obligations can mean a clean-up bill that dwarfs timely compliance. The expensive path is not the work. It is learning about the work from a penalty notice.

How we hold the part after the licence

We treat the licence as the start of the engagement, not the end.

You see the full cost of ownership before you commit, not piece by piece as penalties, and you work with Manish directly from the first call. In practice, that is four things.

Exactly which obligations apply to youMapped in advance
On a calendar before they can be missedDeadlines held
Current books, so filing is routineRecords kept clean
One person, from the first call onManish, directly

Our bookkeeping and corporate tax and VAT pages show how we keep companies clean, and the overview places these obligations side by side. A short conversation is the fastest way to see which apply to you.

In their words

Why founders stay past the licence.

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The question, answered

What founders actually ask.

Reviewed by Manish Kumar Pandey, Founder, DM Consultancy · Last reviewed June 2026

Is corporate tax registration mandatory if my company makes no profit?

Yes. Registration with the Federal Tax Authority is mandatory for the company, separate from whether any tax is due. A business that pays nothing in tax, including under Small Business Relief, still has to register and file. Missing the registration deadline carries a fixed administrative penalty of AED 10,000, owed purely for being late, not for any tax owed.

Why does the setup quote end at the licence when the obligations do not?

Because the licence is what the setup fee buys, so for many firms the relationship ends the day it is issued. The company you now own is a live legal entity with continuing duties to the tax and licensing authorities, several with fixed deadlines and real penalties. The gap between what the quote covered and what the company owes is where new founders get caught.

What ongoing obligations apply to a new UAE company?

The recurring duties are corporate tax registration and annual filing, VAT where taxable turnover crosses AED 375,000 over a rolling 12 months, bookkeeping to an FTA-acceptable standard, keeping UBO records current, and annual licence renewal. Which ones land on you depends on your turnover, activity, and structure. The right answer is the set that applies to your company, not a flat number.
See it before you sign

Know what you will owe, privately.
Before a single deadline can pass.

Thirty minutes with Manish directly, no pitch. He lays out exactly what your company owes after the licence, corporate tax, VAT, bookkeeping, UBO, renewal, with the deadlines, so the AED 10,000 penalty and its cousins never arise. If the firm fits, we proceed. If not, you leave with sharper direction than you came in with.

info@dm-uae.com · Port Saeed, Deira, Dubai