If you're operating a business in Ajman, one of the most business-friendly emirates in the UAE, staying ahead of regulatory requirements is crucial. With the UAE implementing Corporate Tax in 2023, companies in Ajman are now required to register, file, and comply with the Federal Tax Authority’s corporate tax regulations. Whether you're a startup, SME, or an established enterprise, understanding the corporate tax registration in Ajman process is essential to avoid penalties and maintain a clean financial profile.

This 2025 guide to corporate tax registration in Ajman is your go-to resource for everything from eligibility and documentation to deadlines, exemptions, and penalties. Let's break it all down in simple, clear terms.

What is Corporate Tax in the UAE?

Corporate tax is a direct tax imposed on the net income or profit of corporations and businesses. In the UAE, the Federal Decree-Law No. 47 of 2022 established the framework for corporate taxation, effective from 1st June 2023.

Key Facts:

• Standard rate: 9% on taxable income exceeding AED 375,000.

• Threshold: 0% for income up to AED 375,000 (to support small businesses and startups).

• Flat rate: For Qualifying Free Zone Persons at 0%, subject to meeting specific conditions.

This move aligns the UAE with global tax standards, enhancing transparency and enabling better international trade agreements.

Who Needs to Register for Corporate Tax in Ajman?

Not all entities are subject to the new tax law, but many are. Here’s a quick list of those required to register:

Entities That Must Register:

• Mainland companies (LLCs, PSCs, etc.)

• Free Zone entities (including those in Ajman Free Zone and Ajman Media City)

• Branches of foreign companies

• Individuals conducting business activities under a trade license

Exempt Entities:

• Government entities and government-controlled entities

• Extractive businesses (subject to Emirate-level taxation)

• Qualifying public benefit entities

• Pension or social security funds

• Investment funds (that meet certain conditions)

Even if exempt, registration is still required, unless explicitly excluded by the FTA.

 Step-by-Step Corporate Tax Registration Process in Ajman

Here’s your step-by-step breakdown of how to register for corporate tax registration in Ajman through the EmaraTax platform managed by the Federal Tax Authority (FTA).

Step 1: Create/Access Your EmaraTax Account

Visit https://eservices.tax.gov.ae and log in using your UAE Pass or existing FTA credentials.

Step 2: Initiate Corporate Tax Registration

Click on “Corporate Tax” in the dashboard and select “Register”. Choose your entity type Mainland or Free Zone.

Step 3: Fill in Company Details

Include:

• Legal name (English and Arabic)

• Trade license number and issuing authority

• Business activity description

• Emirates location (Ajman)

Step 4: Upload Required Documents

Documents include:

• Valid trade license

• Memorandum of Association (MoA)

• Emirates ID & passport of owners/partners

• Financial statements or projected income

• Tenancy contract (Ejari or lease agreement)

Step 5: Review & Submit

Double-check all entries and submit the application. You will receive a Tax Registration Number (TRN) upon approval.

Corporate Tax Filing Requirements in 2025

Once registered, your business is expected to file tax returns annually.

Filing Timeline:

• The first corporate tax period begins on or after 1st June 2023.

• Tax returns must be filed within 9 months from the end of the financial year.

  • Example: If your financial year ends on 31st December 2024, your first return is due by 30th September 2025.

Filing Method:

• Only through the EmaraTax platform.

• You must submit:

  • Audited or unaudited financials

  • Profit and loss statement

  • Supporting schedules for deductions and exemptions

Understanding the Corporate Tax Rates and Thresholds

Tax Brackets in 2025:

Free Zone Exception Criteria:

To qualify for the 0% tax in a Free Zone like Ajman Free Zone, your business must:

• Maintain adequate substance in the UAE.

• Earn only qualifying income (e.g., exports outside UAE).

• Not elect to be taxed at regular 9%.

• Comply with transfer pricing and economic substance regulations.

 Required Documents for Corporate Tax Registration

To make your application successful, prepare the following:

• Trade license copy

• Memorandum & Articles of Association

• Passport and Emirates ID (for owners/partners)

• Lease agreement or tenancy contract

• Financial statements or income projection

• Details of related parties and group structures

Keep scanned copies ready in PDF format under 5MB for each file.

Penalties for Late Registration and Non-Compliance

Failing to register or file returns on time can result in hefty penalties. As per FTA announcements:

Stay compliant to avoid financial and legal setbacks.

Role of Accounting Firms in Corporate Tax Registration

If the process seems overwhelming, you're not alone. Many businesses in Ajman hire professional accountants or tax consultants to manage their registration and ongoing compliance.

What They Can Help With:

• EmaraTax registration and filing

• Document preparation and verification

• Audit and bookkeeping setup

• Free Zone compliance checks

• Representation during FTA inquiries

Hiring a qualified tax consultant ensures accuracy, peace of mind, and strategic tax planning.

 Maintaining Corporate Tax Compliance in 2025

Beyond registration, staying compliant involves continuous monitoring of your financial health.

Here’s what your business should do regularly:

• Maintain clean records of all transactions (minimum 7 years)

• Use cloud accounting software (like Xero, QuickBooks, or Zoho)

• Conduct periodic internal audits

• Track income thresholds to anticipate taxation

• Stay updated with FTA guidelines and amendments

FAQs About Corporate Tax in Ajman

Is corporate tax applicable to freelancers or sole proprietors?

Yes, if your total business income exceeds AED 375,000 annually under a trade license.

Are Free Zone companies exempt?

They are not automatically exempt. Qualifying Free Zone Persons can benefit from 0% tax but must meet conditions.

Is audited financials mandatory?

Currently, auditing is not compulsory for all, but strongly recommended, especially if revenue is high or you're applying for tenders.

Can I deregister if I stop my business?

Yes, you must apply for tax deregistration via EmaraTax if your business ceases operation.

 Free Zones in Ajman and Corporate Tax

Ajman is home to two popular Free Zones:

• Ajman Free Zone (AFZ): Ideal for logistics, trading, and manufacturing.

• Ajman Media City: Tailored for media, tech, and freelance industries.

Both zones offer 100% foreign ownership, repatriation of profits, and cost-effective packages. But remember even Free Zone companies must register for corporate tax registration in Ajman and submit returns if required by law.

Economic Substance and Transfer Pricing Requirements

Large companies or those in Free Zones may also be subject to Economic Substance Regulations (ESR) and transfer pricing (TP) rules.

Key Points:

• ESR applies to activities like banking, shipping, or IP-related businesses.

• TP documentation is required if your business has related party transactions.

Non-compliance can lead to fines up to AED 400,000 and even license suspension.

Final Words

Corporate tax registration in Ajman isn’t just a legal formality it’s a foundational step in aligning your business with the UAE’s evolving financial framework. Whether you’re in a Free Zone or mainland Ajman, ensuring timely registration, correct filings, and ongoing compliance is non-negotiable in 2025.

By understanding the process, organizing your documents, and working with expert tax professionals, you can avoid penalties, reduce tax liability, and make smarter financial decisions. Remember, the goal is not just to pay tax but to manage it strategically for long-term business success.

Act now register, comply, and grow your business the right way in Ajman.