Redomiciling a Company to the UAE: Benefits & Process
Redomiciling a Company to the UAE: Redomiciliation, or corporate migration, involves transferring a company’s domicile from one jurisdiction to another. This process has become much simpler in recent years due to the growing demand from businesses looking to change their jurisdiction. The United Arab Emirates (UAE), with its numerous free zones, each governed by distinct operational and domicile laws, has emerged as a highly attractive destination for redomiciliation
Why Redomicile to the UAE?
Companies choose to redomicile for various commercial, practical, or legal reasons. When a company redomiciles to the UAE, it becomes a UAE-registered entity, with all its rights and liabilities transferring along with it.
It’s important to note that redomiciliation differs from setting up an overseas branch or incorporating a subsidiary in a foreign country. Once the redomiciliation process is complete, the company is regulated under UAE law and/or the laws and regulations of its specific free zone.
Key reasons for redomiciliation to the UAE include:
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- Favorable Tax Environment: Benefit from 0% personal income tax.
- Extensive Tax Treaty Network: Utilize tax treaties with over 80 countries.
- Relaxed Regulations: Enjoy lesser stringent regulations and scrutiny.
- Shareholder Alignment: Register in a jurisdiction matching the shareholder base.
- Financial Hub Relocation: Move to an international financial center.
- Banking Access: Gain access to local and international banks.
- Middle East Profile Enhancement: Boost exposure and presence in the Middle East.
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UAE Free Zones for Redomiciling Your Business
Redomiciliation Eligibility
Before redomiciliation, confirm your company’s eligibility. Key considerations include compliance with company law in the original jurisdiction and no intentions of redomiciling to defraud creditors. Moreover, your original jurisdiction must allow for overseas redomiciliation. Some countries permit two-way redomiciliation, while others only allow inward redomiciliation.
Process of Redomiciling to the UAE
- Verify Eligibility: Confirm both jurisdictions support redomiciliation.
- Board Resolution: Secure a board resolution approving the redomiciliation.
- Check New Jurisdiction Requirements: Understand specific UAE free zone or mainland requirements.
- Initial Approval Application: Apply for approval from the UAE authority (DED or free zone).
- Document Preparation and Submission: Submit necessary documents including the Certificate of Incorporation, Board resolution, Good Standing Certificate, financial statements, and personal documents of shareholders and directors.
- Notarization and Legalization: Notarize and legalize documents as required.
- Cancel Original Registration: Obtain a Certificate of Discontinuance or similar from the original jurisdiction.
- Final Application Submission in UAE: Submit all documents to the UAE authority.
- Obtain Trade License and Registration: Secure the new UAE trade license and registration.
- Transfer Assets and Operations: Move assets and operations to the UAE entity.
- Compliance and Regulatory Adherence: Ensure compliance with UAE regulations and renew licenses as needed.
- Stakeholder Notification: Inform all stakeholders of the redomiciliation.
Our team of expert consultants at ECAG INCORP is ready to assist and advise on establishing or redomiciling your business in the UAE. With extensive knowledge and experience, we can address any questions or concerns about the UAE redomiciliation process.