The term re-domiciliation defines the procedure by which a company shifts its location of registration from one jurisdiction to another one while sustaining a similar legitimate unit. A re-domiciliation is possible with some conditions, that is why we brought a guide on company redomiciliation in Dubai for you. This guide will definitely help you to understand the complete process and some vital factors and benefits of re-domiciliation of a company. You can also consult with the best business setup consultants at Start Any Business regarding the same. They will surely guide you and also help you in this process.
Traditionally. The re-domiciliation process was majorly utilized for tax matters, shifting to a very lucrative jurisdiction rather than closing to a new unit. The UAE has presented itself as a leading international commercial center with several advantages for companies wanting to move there, namely – a beneficial tax regime, outstanding connectivity, accessibility to the English jurisprudence, a sustainable currency, international recognition, world-class logistics facilities, a sea of skilled professionals, security and political stability.
When re-residing in Dubai, a company can sustain its existing assets, legal nature, and records. The companies, which operate in substandard conditions outside of the UAE and suffer from adverse taxation, strict legal controls, and high hazards, are no longer required to relocate in the UAE and lose become non-inventory status. The asset is unlikely to be depreciated. The companies can continue their activities and conduct international business matters in other nations while registering in the United Arab Emirates.
What is a Redomiciliation
Re-domiciliation or re-residing is a procedure by which the organization moves its domicile from one jurisdiction to another jurisdiction while sustaining a similar legal identity. The major advantages of re-domiciliation are that the company can retain all the current contractual rapports. This is often utilized for tax matters; hence a company can relocate to another jurisdiction without needing to closing the business and move assets to a new unit.
As a result of the growing demand for corporate re-domiciliation over the years, the procedure has become significantly easier and is prevalent in common and civil law structures as well as in jurisdictions conducted in the island states. In the UAE, the current regulatory structure doesn’t permit for company re-domiciliation in Dubai mainland. Although, there are many free zones with regulatory structures that permit corporate redistribution.
The Process of Company Redomiciliation in Dubai
The re-domiciliation procedure would differ with every jurisdiction, and part of the procedure would be to start re-domiciliation in the existing jurisdiction first. Based on the corporate framework and powers within the organization, we would require to liaise with the registration office in the jurisdiction to map the exact, phased and documents needed. The general steps for company re-domiciliation are –
- A request for overseas company re-domicile is presented by the registered agent with the regulatory official of the free zone. The registered agent would examine and submit the trade name with the regulatory authority of the free zone confirming the trade name is available and reserving it.
- The registered agent would tally all the constitutional papers and the application for continuation. The agent will also meet the Know Your Customer needs for sole stakeholders, secretaries, directors, and corporate directors, stakeholders, and secretaries.
- The regulatory authority of the free zone would conduct due diligence and review and attest to the documents and application. It would be completed through the registered agent.
- The regulatory authority would grant an invoice for the procedure of re-domiciliation and for the setup of a license in the new jurisdiction. The invoice has to be paid in full to move forward.
- The regulatory authority would grant the continuation certificate and the grant the license.
Reasons for a Company Redomiciliation in Dubai
About 40 free zones are conducted in Dubai or the UAE. Each free zone is created, almost one or more business licenses and categories are only permitted to the company located on these allowed categories. In Dubai, each free zone gives various licensed activities, like financial services, trading, logistics, information technology, media-related activities, light industry, and communications.
- No corporate taxation
- Flexible regulations and control
- Accessibility to the English jurisprudence
- Complete repatriation of profit and capital
- Availability of various corporate vehicles
- Sustainable economy
- Geographically well-established and easy accessibility to various financial hubs
- Greater assets security through DIFC foundations and will
- Access to many international and local banks
- Ability to get real estate in the freehold regions in the UAE.
Overseas companies can re-domicile and get different and many advantages given by the UAE no taxation atmosphere. We at Start Any Business will help you in the best and most suitable manner to set up your business in Dubai. We will guide you completely on the company re-domiciliation in Dubai. We give you the best consulting service to start in the right direction.