Setting up a business in the United Arab Emirates (UAE) involves several government procedures. One mandatory requirement is obtaining a Tax Registration Number (TRN) for your company. This unique identification number helps authorities track your business activities for tax purposes.
Without a TRN, you may face disruptions, penalties and even inability to operate. So it is crucial to register for one. This detailed guide explains everything about getting a TRN in the UAE in a simplified manner.
Who Needs a Tax Registration Number (TRN)
A TRN is compulsory in the UAE for:
- Any business that makes taxable supplies
- Companies importing or exporting goods
- Both mainland and free zone companies
- Sole proprietors, partnerships, limited companies
- Resident and non-resident companies
In short, if your company deals with products, services or transactions that are taxable in the UAE, you must obtain a TRN. This applies irrespective of where your firm is registered or based. Having a registration number enables proper filing of taxes to the government.
Why Should You Register for a Tax Registration Number?
Here are some key reasons for businesses in the UAE to register for a Tax Registration Number:
1. Adhere to Tax Laws
Registering for a TRN helps companies comply with laws set by the Federal Tax Authority and avoid violations. Non-compliance can mean severe penalties.
2. Smooth Business Operations
Having a TRN makes procedures for imports, exports, accounting and other financial transactions streamlined without disruptions.
3. Build Credibility
A TRN boosts your brand’s credibility and trust factor for customers, investors, partners and recruitment.
4. Adapt to Future Changes
As the UAE tax regime evolves, a TRN registration makes it easy to adapt to new policies.
Documents Needed to Apply for a TRN
To submit your TRN application, keep scanned copies of these documents ready:
1. Proof of Identity
- Passport copy
- UAE residence visa
2. Business Proof
- Trade license
- Certificate of Incorporation
3. Address Proof
- Title deed or lease agreement
4. Other Supporting Documents
- Emirates ID copy
- Proof of UAE bank account
Authorities use these documents to verify the identity and legitimacy of the business seeking a TRN.
Step-by-Step Process to Apply for a TRN
Follow these steps to submit your tax registration number application online:
Step 1: Register on the FTA Portal
First, you need to setup an account on the Federal Tax Authority (FTA) portal:
- Visit www.tax.gov.ae
- Click on “Register”
- Enter email address and choose a password
- Check email to verify account
Step 2: Fill the TRN Application Form
Log into FTA account and navigate to TRN section. Carefully enter all required information about your business.
Step 3: Upload Documents
Attach scanned copies of trade license, passport and other documents needed for processing the application.
Step 4: Pay Application Fee
Pay the AED 100 fee online via debit/credit card. Keep the digital receipt for records.
Step 5: Receive TRN Certificate
Once approved, the TRN certificate will be emailed to you within 15-20 working days.
What Happens After Submitting the Application?
Once you complete and submit the TRN application to FTA, here is the processing procedure:
1. Check Application Status
Log into FTA account to check application status and track where it is in the approval process.
2. Information Requests
Officials may contact you via email or phone for additional documents or clarifications needed. Respond promptly.
3. Rejection and Reapplication
If mandatory information is inaccurate or inadequate, the application may get rejected. You can reapply and provide correct documents.
4. Receive TRN Certificate
Upon satisfactory verification, FTA will issue the TRN certificate on registered email ID within 15-20 days.
Renewing Your TRN – Important Points
Once you receive your initial TRN, it is crucial to renew it annually and on time. Delayed renewal can mean penalties.
- Mark your calendar well in advance of TRN expiry
- Submit the renewal application before the deadline
- Keep all tax affairs up to date. Clear due payments.
Stay updated on notifications from FTA portal regarding renewal and other tax regulation changes.
Conclusion
We hope this detailed, step-by-step guide to obtaining a Tax Registration Number in the United Arab Emirates helps you understand the procedure fully. Ensure you apply well in advance and keep it renewed annually. Having a TRN makes tax compliance smooth for doing business in UAE. Stay compliant, save penalties!
FAQs
Yes, only Emirates ID is mandatory. Even non-residents in UAE can apply for and receive a TRN.
Contact FTA call center immediately to avoid rejection. For minor errors, providing additional documents can help correct details.
Yes, you must register separate TRNs for each company or business entity to correctly file taxes.
