in order to add member, such member should cross mandatory threshold limit ie AED 375k. refer Article 10(8)(b) of executive regulations.

The Law does not mandate that each member should reach the threshold. Article 10(8)(b) of ER refers to situation where FTA can force multiple entities to form a tax group. The conditions for forming a tax group are laid down under Article 14(1) of DL. Further FTA guide on Tax Group reaffirms that each member need not meet the threshold (refer Section 2.4.1 of the guide). However practically FTA can insist on each member meeting the threshold and same cannot be questioned.

the law mandates the threshold as per EL. the DL does not cover the procedural steps, it’s always contained in EL. The power to FTA to force tax grouping is for avoiding tax evasion which is not relevant in this case. Coming to Tax Group Guide, as per section 2.4.1 of the Guide, it says the prospective member or members must separately or jointly satisfy the registration requirements. i.e. it refers to registration threshold of prospective memebr(s) and not current members. thus, in current case, threshold limit for new entity must be satisfied. please note that the FTA cannot insist on meeting threshold limit if there is no rules regarding that. further, we have seen practicle cases where fta rejected adding of tax member where threshold is not met.

can we group LLC and sole proprietorship?