Redomiciliation Of Your Company To Dubai/UAE – Corporate and Company Law

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

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.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.