Corporate Tax is a form of direct tax levied on the net income or profit of corporations and other businesses. Corporate Tax is sometimes also referred to as “Corporate Income Tax” or “Business Profits Tax” in other jurisdictions.

The UAE Corporate Tax regime is effective for Financial Years starting on or after 1 June 2023. Examples: A Business that has a Financial Year starting on 1 July 2023 and ending on 30 June 2024 is subject to UAE Corporate Tax from 1 July 2023 (which is the beginning of the first Financial Year that starts on or after 1 June 2023). A Business that has a Financial Year starting on 1 January 2023 and ending on 31 December 2023 will become subject to UAE Corporate Tax from 1 January 2024 (which is the beginning of the first Financial Year that starts on or after 1 June 2023).

UAE Corporate Tax applies to juridical persons incorporated in the UAE and to foreign juridical persons that are effectively managed and controlled in the UAE (see question 20: ‘Who is considered a Resident Person for UAE Corporate Tax purposes?’). A foreign juridical person that operates in the UAE through a Permanent Establishment or that has a taxable nexus in the UAE would also be subject to Corporate Tax (see Section M “Foreign persons”). Natural persons will be subject to Corporate Tax only if they are engaged in a Business or Business Activity in the UAE, either directly or through an Unincorporated Partnership or sole proprietorship. Cabinet Decision No. 49 of 2023 specifies further information on what would bring a natural person within the scope of UAE Corporate Tax.

Yes. The application of UAE Corporate Tax does not differentiate between entities that are locally or internationally owned. Juridical persons that are incorporated or resident in the UAE, or foreign entities that have a Permanent Establishment or taxable nexus in the UAE, will be subject to UAE Corporate Tax irrespective of the residence and nationality of the individual founders or (ultimate) owners of the entity.

Yes. The UAE Corporate Tax is a federal tax and will therefore apply across all the Emirates.

Businesses engaged in the extraction of the UAE’s Natural Resources and in certain non-extractive activities that are subject to Emirate level taxation will be outside the scope of UAE Corporate Tax, subject to meeting certain conditions. Other businesses may be subject to both Corporate Tax and Emirate level taxation. Emirate level taxes paid will not be able to be credited against or otherwise reduce the amount of Corporate Tax Payable.

No, Corporate Tax and VAT are two different types of taxes. Both will apply in the UAE.

If you are a registered business for VAT, you will have to pay VAT and Corporate Tax separately. If your business is not registered for VAT you may still have to pay Corporate Tax.

Yes, all company types, including Private Limited, LLP, and OPC, must have a registered office in India, where official communications will be sent.

The time for company incorporation varies, but typically it takes around 15-25 working days, depending on the completion of documentation and government processing.

The required documents include address proofs, identity proofs, photographs, and other specific documents for directors/partners and the registered office.

The tax rates and implications vary for each type of company, such as Private Limited, LLP, and OPC. It is advisable to consult a tax expert to understand the specific tax liabilities.

Yes, foreign companies can establish branch offices in India with the prior approval of the Reserve Bank of India (RBI).

A Private Limited Company must have a minimum of two directors and can have a maximum of 15 directors.

Yes, foreign nationals can be directors in an Indian Private Limited Company, provided they have a valid Director Identification Number (DIN) and fulfill other regulatory requirements.

Some advantages include limited liability protection for shareholders, ease of raising funds, separate legal entity status, and perpetual succession.

The minimum authorized capital for a private limited company in India is Rs. 1 lakh. This is according to Section 3(1)(iii) of the Companies Act, 2013.

Annual compliance includes filing annual returns, financial statements, conducting an Annual General Meeting (AGM), and updating the RoC about any changes in the company's structure.

Yes, the minimum age requirement for a director in a company is 18 years old in India.

Companies need to comply with various statutory requirements, such as annual filings, maintenance of books of accounts, conducting board meetings, and filing income tax returns.

LLP offers limited liability to its partners while also allowing them to actively manage the business. A Private Limited Company has shareholders and directors, providing a clear distinction between ownership and management.

An LLP must have a minimum of two partners, and there is no maximum limit on the number of partners.

Yes, an LLP can have a foreign national as one of its designated partners, subject to certain conditions.

No, there is no minimum paid-up capital requirement for an LLP. Partners can contribute any amount of capital agreed upon among themselves.

Yes, partners in an LLP have limited liability protection, meaning their personal assets are not at risk for the debts or liabilities of the LLP.

Yes, an existing partnership firm can be converted into an LLP by following the prescribed conversion process.

Yes, LLPs are required to file annual returns and other necessary documents with the RoC.

To establish an OPC, there must be a sole promoter who acts as both the shareholder and director. The company should have a nominee to take over in case of the promoter's death or incapacity.

No, a person can be a director in only one OPC. However, they can act as a nominee in multiple OPCs.

Yes, an OPC can be converted into an LLP or Private Limited Company by following the conversion process prescribed under the Companies Act.

There is no specific minimum paid-up capital requirement for an OPC as per the Companies Act, 2013. It can be incorporated with a nominal capital as low as ₹1.

Any individual, Hindu Undivided Family (HUF), firm, company, or any other entity with taxable income exceeding the specified threshold is required to pay income tax.

The major types of income taxable include salary income, income from house property, capital gains, business or profession income, and income from other sources.

For most individual taxpayers, the deadline to file income tax returns is July 31st of the assessment year (AY). For example, for the financial year (FY) 2022-23, the deadline for AY 2023-24 is July 31, 2023.

Yes, the government may extend the deadline for filing income tax returns in certain situations or due to special circumstances. Taxpayers are advised to stay updated with government notifications for any extensions.

Yes, you can file your income tax return after the deadline has passed. For individual taxpayers, a belated return can be filed by March 31st of the assessment year, but it may attract penalties and interest.

If an individual files a belated return after the original deadline (July 31st), they may be subject to a late filing fee of ₹5,000 if filed by December 31st and ₹10,000 if filed after December 31st of the relevant assessment year. However, Individuals with total income up to ₹5 lakhs, the late fee applicable is ₹1,000.

Yes, you can file a revised income tax return to correct any mistakes or omissions in the original filing. However, the revision must be done within the specified time limit, usually before the end of the relevant assessment year.

Individuals below the age of 60 years having total income exceeding ₹2.5 lakhs, individuals aged 60 years or above with income exceeding ₹3 lakhs, and all companies and firms are required to file ITR mandatorily.

If TDS has been deducted from the salary, it is still mandatory to file ITR if the total income exceeds the basic exemption limit.

Even if an individual's income is below the taxable limit, they can voluntarily file ITR to claim a refund on excess TDS or claim deductions.

Yes, it is mandatory for companies and firms to file ITR, even if they have incurred losses or have no income during the financial year.

Filing ITR helps establish a financial record, facilitates loan approvals, and aids in claiming refunds or carrying forward losses for future years. It is also essential for visa processing and other financial transactions.

Businesses with an annual turnover exceeding ₹40 lakhs (₹20 lakhs for special category states) must register for GST. For businesses that supply services, the threshold limit is ₹20 lakhs (₹10 lakhs for special category states).

GST registration can be done online through the GST portal (www.gst.gov.in) by providing necessary documents and details as per the registration process.

No, businesses with GST registration, regardless of their turnover, are required to file GST returns as per the prescribed frequency.

Yes, even if there are no business transactions during a particular period, you are required to file a nil return or a return with zero values.

The due date for filing GST returns varies depending on the type of taxpayer and the applicable return form. Regular taxpayers typically file GSTR-3B by the 20th of the following month.

Yes, you can file a late GST return, after the due date by paying the applicable late filing fees.

Failure to file GST returns for an extended period may lead to cancellation of GST registration and legal consequences, including penalties and prosecution.

Yes, businesses can claim input tax credit on GST paid on purchases used for business purposes. It helps offset the tax liability on outward supplies.

No, to claim input tax credit (ITC) on GST paid on purchases, you must be a registered taxpayer and regularly file GST returns.

In India, GST is divided into Central GST (CGST) and State GST (SGST) for intra-state supplies and Integrated GST (IGST) for inter-state supplies.

GST implementation has simplified tax compliance, eliminated cascading effects, and facilitated ease of doing business by creating a single tax structure across India.

Accounting is the process of recording, summarizing, analyzing, and interpreting financial transactions of a business or organization to produce financial statements and reports.

Bookkeeping is a subset of accounting that involves recording daily financial transactions, such as purchases, sales, receipts, and payments, in a systematic manner.

Bookkeeping is essential for businesses as it helps in maintaining accurate financial records, monitoring cash flow, making informed business decisions, and meeting tax compliance requirements.

Financial statements are formal records that provide a summary of a company's financial activities. The main types of financial statements are the income statement, balance sheet, and cash flow statement.

In cash accounting, transactions are recorded when cash is received or paid. In accrual accounting, transactions are recorded when they occur, regardless of the cash flow.

Reconciling bank statements ensures that the company's records match the bank's records, identifying any discrepancies and errors in transactions.

Bookkeeping should ideally be done regularly, either daily, weekly, or monthly, depending on the volume of transactions and the business's needs.

Yes, small business owners can manage bookkeeping themselves using accounting software or spreadsheets. However, hiring an accountant can provide expert guidance and accuracy.

Bookkeeping provides the necessary data and financial information required for accurate tax preparation and filing, ensuring compliance with tax laws.

Businesses should retain financial records for a specific period, usually up to 6-7 years, as required by tax laws and other regulatory authorities.

MSME registration is a voluntary process where small and medium-sized enterprises can get themselves registered with the Ministry of Micro, Small, and Medium Enterprises or the respective state's MSME department.

Any enterprise engaged in manufacturing or service activities and falls under the prescribed investment and turnover limits can apply for MSME registration.

MSME registration can be done online through the Udyam Registration portal (www.udyamregistration.gov.in) by providing the necessary details and documents.

MSME registration offers various benefits, including access to government schemes, subsidies, priority sector lending, and easier credit facilities.

MSME registration is not mandatory for small businesses. It is voluntary, but it provides several advantages, making it beneficial for eligible enterprises.

Yes, both new and existing enterprises can apply for MSME registration to avail of the benefits offered to MSMEs.

Yes, an enterprise can upgrade or downgrade its category based on its investment and turnover in subsequent years.

A startup package is a comprehensive service offering that includes various services required to set up and manage a private company or LLP efficiently.

A startup package usually includes company/LLP registration, PAN/TAN application, compliance support, accounting services, taxation, and other related services.

Startup packages are designed for entrepreneurs, small businesses, and startups looking for a one-stop solution for all their legal, financial, and compliance needs.

Consider the specific services offered, pricing, and the scope of support before choosing a startup package that best fits your business requirements.

Startup packages are suitable for new businesses looking to set up a private company or LLP. Existing businesses can also benefit from specific services offered in the package.

We may offer the flexibility to customize the startup package based on your business requirements. Discuss your needs with the service provider to explore customization options.

The main advantages include cost-effectiveness, time-saving, professional assistance, and access to a range of essential services under one umbrella.

The timeline for availing services in the startup package may vary depending on the complexity of the services and the efficiency of the service provider.

The timeline for availing services in the startup package may vary depending on the complexity of the services and the efficiency of the service provider.

Yes, startup packages are available for various types of businesses, including private companies, registered private companies, LLPs, and registered LLPs. The services may vary based on the business structure and requirements.

Yes, you will need to provide necessary documents and information related to your business, such as identification proof, address proof, and other relevant details for registration and compliance purposes.

Yes, many startup packages include tax planning and advisory services to help businesses optimize their tax liabilities and comply with tax regulations.

Yes, startup packages are suitable for all types of businesses, including online businesses and e-commerce ventures.

Some service providers may offer special discounts or additional benefits for startups and small businesses to support their growth.