Initiating a business setup in Dubai is an exhilarating venture with opportunities and possibilities. But there are so many rules associated with it and it can be tricky. One such is getting a TRN number for your company formation in Dubai.

In this blog, we will discuss the process and requirements to make sure you can easily receive your TRN.

Let us start!

What is a Tax Registration Number (TRN)?

A Tax Registration Number is a 15-digit unique identification number issued by the Federal Tax Authority (FTA) in the UAE. This unique number helps the FDA identify the registered entities from other entities.

 Your company will get this after completing the VAT registration. But you should include the TRN number in all your paperwork. Then only the government can keep track of and document every transaction the business or individual makes.

If your company doesn’t have a TRN number, it is impossible to charge VAT on clients.

Eligibility criteria to get a TRN in Dubai, UAE

It is essential to confirm that your company meets the requirements for a TRN before starting the application procedure. The company has to meet the following revenue targets:

  • A business may decide to register for VAT if its annual revenue exceeds 187,000 AED but falls below 375,000 AED.
  • If your company has a threshold of 187,500 AED, you are eligible for voluntary registration for VAT and TRN.
  • And if it’s 375,000 AED,  you are eligible for mandatory registration for VAT and TRN.

Why is TRN important for business setup in Dubai?

It’s super important because it helps companies follow the VAT rules. Consider it as a key that ensures your company is complying with tax regulations. Moreover, it proves that your business is paying the right share of taxes. This helps the UAE in monitoring companies to ensure that all parties are contributing to the development of the entire country. 

The following are some reasons for your UAE business’s need for a TRN.

  • Legal Requirement:

TRNs are required for companies operating in the UAE whose yearly revenue surpasses a certain threshold.

  • VAT Compliance

If your company wants to conduct transactions that comply with VAT, TRN is essential. This makes it possible to calculate and collect VAT on taxable supplies properly.

  • Tax Refund

Your businesses cannot claim tax refunds on purchases unless they have a TRN.

  • International Transactions: 

It is a must to have a TRN if your business does frequent international trade. It guarantees compliance with tax laws and guidelines.

Procedure to Apply for TRN in UAE

In the UAE, obtaining a Tax Registration Number requires following a methodical procedure to guarantee an effortless and legal process. The following instructions will walk you through the TRN application step-by-step:

Visit the EmaraTax Portal

  • Go to the EmaraTax portal (https://eservices.tax.gov.ae) using a web browser.

Sign Up for an FTA Account

  • As a new tax registrar, click on the option to sign up for a new account. 
  • Use your UAE ID pass for authentication during the registration process.

Verify Your Email and Log In to Your EmaraTax Account

  • Once the registration is complete, log into your email account and verify.
  • Then visit the EmaraTax portal and log in using your newly created FTA account credentials.

Access the User Dashboard

  • Upon successful login, you will be directed to the user dashboard within the EmaraTax online system.

Select Tax Registration Type

  • From your dashboard, choose the type of tax registration you are applying for VAT, Excise, or Corporate Tax.

Check Eligibility

  • Ensure that you meet all eligibility criteria for the selected tax registration type and you have the necessary proof of eligibility.

Proceed with the Application

  • After confirming eligibility, click on the “Proceed” button to move forward with the application process.

Complete the Application Form and Submit Required Documents

  • Provide all necessary information about your business on the application form, making sure to fill it out completely.
  • Upload all required documents by the application rules.

Await Approval

  • After submission, your application will be reviewed by the Federal Tax Authority.
  • Using your EmaraTax account, keep an eye on the progress of your application.

Documents required to obtain TRN in Dubai, UAE

By seeing the steps you may feel it’s an easy process. But, you need to submit many documents to get the TRN and it is time-consuming. It is best to consult a business consultant in UAE for hassle-free VAT registration and get the TRN. 

Below are the documents required:

  • Trade license of the company
  • Memorandum of association of the company
  • Bank Account Details of the company
  • Import or export declarations
  • Company’s address and contact details
  • Passport copies of shareholders/authorized person
  • Emirates ID of shareholders/authorized person
  • The turnover declaration letter from the company
  • Income statement and bank details from the previous year
  • Sample invoices from clients and suppliers

Conclusion

Establishing a business setup in Dubai demands thorough preparation, adherence to regulations, and wise decision-making for long-term growth. It involves handling many essential tasks.

Among those, TRN and VAT are important for businesses in the UAE. It supports UAE growth and keeps your business legal. It may seem easy to get the TRN, but one has to submit several documents. Moreover, if you give any incorrect information, you need to repeat the entire process. 

So, consider reaching out to Millennium Business Solutions to get your TRN, and VAT registration. Our expert can assist your business in managing the complexities of tax laws and simplifying the procedure. Get in touch with us right now for hassle-free VAT registration in the UAE. We are excited to help you!