Do you know about the recent update from the Federal Tax Authority (FTA) regarding the amendment of the legal entity type of your business? Yes, you can amend the legal entity type of your business in the UAE just one time if you have registered an incorrect legal entity type or have undergone a legal entity change.
The amendment can be proceeded on the taxable person profile through the FTA Portal. It is one of the significant milestones offered by FTA to make corrections in the legal entity type of your business, as it is an easy and not as complex process as the previous one.
However, there are some critical areas that need to be addressed related to VAT deregistration and Corporate Tax registrations while amending the legal entity type of your business.
Therefore, you must get expert guidance for amending the legal entity type of your business, such as Now Consultant in the UAE. In this article, we cover…
Documents Required to Change Entity Type In FTA Portal
The following are the required documents for amending the legal entity type of your business:
If you are changing your entity type to “Natural person.”
- Evidence of amending the legal entity type of your business
- Emirates ID or Passport of the taxable person
- Trade license
If you are changing your entity type to “legal person or partnership.”
- Certificate of incorporation
- Trade license
- Emirates IDs
- Passports
- Trade licenses of owners or partners
How To Change Your Entity Type In FTA Portal (step-by-step guide)
You should follow the following step-by-step process in order to change the entity type of your business in the UAE through the FTA portal:
1. Login to the FTA Portal
The first step is very easy as you need to visit the official FTA website and click on the “Login” button. Now, you need to put your username and password accurately to open your account. Here, you need to verify any two-factor authentication if it is required.
2. Access Your Profile
In the second step, after successful login, you will see an option for “My Profile” from the dashboard. In this section, you will find brief information about your existing registration and current entity type.
3. Request for Amendment
In the third step for changing your legal entity type, click on the option of “Amend Registration.” By clicking on this option, you can initiate the process of changing the legal entity type of your business. Here, you can choose the entity type option to update it.
4. Update Entity Type
In the fourth step, you can choose the new entity type according to meeting your demands. It may be changed from a sole proprietorship to an LLC or any others according to your requirements.
You should take care of putting all the necessary details related to your new entity type, such as license details, ownership structure, and any other required information demands on the FTA portal. It is better to get expert guidance while proceeding to this step as it is a technical step.
5. Upload Documents
In this step, you should upload all the required documents to the FTA portal, as we discussed above, in accordance with the change in entity type of your business in the UAE.
6. Review and Submit
Now after submitting all the documents, you should double-check all the information and upload documents as per the requirements. After reviewing all the information, click on the “Submit” button to send your amendment request to the FTA for review.
7. Receive Confirmation
After submitting all the information, you will receive an email from the FTA. This email confirms that your request has been received.
8. Approval and Update
The FTA will review all your information as per your request to amend the legal entity type of your business. After reviewing your request to ensure that it is valid and free from any error, the FTA will approve your request.
You will be informed about this confirmation through a notification received in your email. In case of any issue, the FTA will contact you for further clarification or documentation.
All the steps of changing the legal entity type of your business seem to be easy, but there are some technicalities that need to be addressed by business setup experts such as Now Consultant.
When You Should Change Your Entity Type?
In the following conditions, your business requires amendments in entity type:
Business Structure Change
In order to change the business structure, such as transforming from a sole proprietorship to a limited liability company (LLC) or merging with another entity, you need to amend the entity type of your business in the UAE.
Expand Business Operations
If you are interested in changing and expanding your business operations, you need to change the legal entity type of your business as per your business operations. It is the most frequent case; as the business grows with time, you need to expand your business operations and update the entity type of your business.
Licensing and Ownership Changes
If you want to make any changes in your trade license; for example, moving from an individual to a corporate shareholder, you need to update the entity type of your business in the UAE. An amendment to the entity type is also required when you want to make any changes in the ownership of your business in the UAE.
Business Rebranding
If you are looking to rebrand your business in the UAE, you need to make changes to the entity type of your business. This change will make sure that your tax-related matters are dealt with in accordance with your new business identity.
It is important to take serious considerations if your business requires amendments to the entity type. The recent updates of the FTA offer an easy way to amend the changes in the entity type of your business. You can proceed with the changes in entity type to clarify your business operations.
This will help your business grow and protect your business from hefty fines and penalties. Expert guidance helps amend the entity type smoothly and easily without any fear of error, as it can be done just once.
How We Can Help You?
If you want to amend the entity type of your business in order to grow your business and get protection against legal fines and penalties, You must get the expert guidance of Now Consultant.
Our business setup expert will help you in throughout the process of amending the entity type of your business accurately and smoothly. Our experts complete every step of the process on your behalf. This will help you increase the chances of growing your business in the UAE.
