Redomiciliation is a process by which a company moves its Domicile or place of incorporation from one jurisdiction to another. The entity can maintain the same legal identity, and its history and the process won’t affect its assets, obligations, and liabilities.
Redomiciliation is also referred to as ‘corporate migration’, ‘transfer of domicile’, or ‘transfer of incorporation’.
Re-domiciliation helps enterprises take advantage of the more favorable tax laws at their new location and benefit from improved access to specialist financial and capital markets.
* The company moves to the new jurisdiction, without having to undergo the liquidation process in the older jurisdiction.
* It will be subject to the laws of the new jurisdiction.
* Redomiciliation is also referred to as ‘corporate migration’, ‘transfer of domicile’, or ‘transfer of incorporation’.
Companies are able to continue their activities and administer international business affairs in other countries while being registered in the UAE. The UAE is open to offshore companies, which possess all the required licenses for their activities.
KEY BENEFITS OF REDOMICILING IN THE UAE
* Tax Savings
* 100% Foreign Ownership and 100% Repatriation
* UAE is a “’ white listed” jurisdiction with Financial Action Task Force (FATF) and Organization for Economic Co-operation and Development (OECD)
* Stable banking and firm AML/CFT measures
* World Class Infrastructure and Strategic Geographical Location
Following are the few jurisdictions in the UAE which allow Re Domiciliation
* Dubai Multi Commodities Centre (DMCC)
* Jabel Ali Free Zone Authority (JAFZA)
* Ras Al Khaimah International Corporate Center (RAKICC)
* Dubai International Financial Centre (DIFC)
* Abu Dhabi Global Markets (ADGM)
* Dubai Creative Clusters Authority (DCCA)
* Ajman Free Zone
What is Necessary to Do to Migrate
The process of migration to another country consists of 2 parts:
The outgoing jurisdiction
- All documentation must be prepared properly. That means that all the financial reports are needed to be submitted along with outstanding annual returns and so on. However, financial reports are required only in some jurisdictions.
- The outgoing company cannot be a party in any current legal process.
- A certificate of good standing and certificate of incumbency must be filed.
The incoming jurisdiction
It is also legal for an overseas company to continue its practice in the UAE if it is allowed by the legal framework of jurisdiction it is subordinated to. The company must provide all the necessary documents such as reports, licenses, confirmations, certifications, amendments to the memorandum, and resolutions. A provisional ‘Certificate of Continuation’ is issued by the local authorities, which allows the company to continue its operation under its own terms and conditions.
After getting a provisional certificate, the company has 3 months to submit a document certificating that it is not subjected to the laws of the previous jurisdiction. Then it obtains UAE the final certificate of continuation. The period of its validation starts from the date stated in the provisional Certificate of Continuation.
Being an expert in setting up companies in UAE and assisting Free Zone and Offshore companies in transferring the Domicile to UAE jurisdictions, we will be delighted to assist you.