Dubai has become one of the most popular jurisdictions to start a business throughout the globe. The business infrastructure of Dubai, including the banking sector, has rapidly developed to be able to absorb the high demand of new businesses seeking to operate through Dubai. Dubai is well considered one of the best financial centers in the world to set up your business.
Redomiciliation in simple terms
Re-domiciliation is the concept that allows a company to change its jurisdiction of establishment. A company which no longer wishes to offer activities in the country of its incorporation or have a substance or presence in the country of incorporation may re-locate (redomicile) to another country, provided that both countries allow the redomiciliation.
A company that chooses to re-domicile has the advantage to keep its legal status, assets, record history and existing clientele and just relocate to a new country by continuing to offer its services uninterruptedly.
Re-domiciliation is offering the opportunity to move an existing company to another country and therefore the Domicile (place of registration) changes while maintaining the same legal identity. The process is useful in the context of legal structure optimization and simplification projects.
Redomiciliation is therefore considered a strong corporate structuring tool.
Main factors to consider prior to redomiciliation
The main factor to consider is whether the company’s place of incorporation maintains the legal provisions for re -domiciliation process and whether approval for the re-domiciliation could be granted. You must also determine the company’s eligibility by demonstrating the company’s compliance and also to determine whether the new jurisdiction approves the re-domiciliation from the country of origin.
Dubai is one of the primary international business centers that accepts the redomiciliation process.
Benefits to redomicile in the UAE
As an international financial hub UAE In line with the international practice of permitting companies to change their seat of incorporation, companies are allowed under the laws of the UAE to change their jurisdiction.
When a company chooses to re-domicile its presence in Dubai it will primarily capitalize in the following advantages:
- 0% corporate tax for free zone companies;
- 0% personal income tax;
- Full capital and profit repatriation;
- World-class infrastructure facilities and connectivity;
- Extensive network of tax treaties with over 80 countries;
- Stable currency and economy;
- Primary hub and platform to access international business;
- Asset protection;
- Access to local and international banks.
Countries Allowing Redomiciliation
|St Kitts and Nevis
|Turks and Caicos
|Isle of Man
|US Virgin Islands
Dubai offers a strong value scheme due to different options available combined with the ability to create substance, through the Economic Substance Regulations (ESR) requirements which was introduced in the UAE in 2019. This has also caused an increase in Re-domiciliation of foreign entities to Dubai.
Dubai is a very unique place, compared to the rest of the world, and has been very supportive to companies that chose to redomicile here.
The redomiciliation process is well known to the Free Zone authorities of Dubai as well as the free zones that are outside Dubai.
The redomiciliation process is done within a reasonable time frame as long as the right professionals assist in the country of incorporation and in the country of redomicile.
It will be our pleasure to provide you with professional assistance regarding the process of redomiciliation in the UAE.