Nowadays, there are numerous ways of improving the effectivity of the already existing company. One can relocate company to another jurisdiction, replace its registered representative office or change the location of its head office. It is possible to change a country of jurisdiction and to maintain the company’s legal identity. Thus, redomiciliation means moving a company domicile. Now it is becoming easier to perform redomiciliation.
The legal framework of the UAE does not forbid companies to change jurisdiction. That is fully lawful according to international practice in permitting countries to replace their domiciles. Owing to redomiciliation, there is no necessity for businesspersons and investors to dissolve companies or look for entities to move their assets, property and portfolio to a new place of jurisdiction.
Moving to the Dubai, UAE
The UAE, being an International Financial Centre, offers a good quality of life and favourable working conditions. Investors and businesspersons, by moving their companies to the UAE, get possibility to control tax issues.
A well-developed system of double taxation agreements and the opportunity not to pay taxes in the UAE attract companies from other countries to redomicile here and to take an advantage of all the benefits.
Reasons to redomicile to the UAE
There are numerous reasons to redomicile, among them are:
- Advantages in paying less taxes;
- Benefits of not so strict control and regulation;
- Possibility to move company domicile without necessity of closing one company and opening a new one.
- Carrying on business in the Global Financial Centre;
- Opportunity to choose among the best specialists in capital markets.
When migrating or redomiciling to the Dubai, UAE, a company can maintain its legal nature, current assets and records. Companies, which operate under inferior conditions outside the UAE and suffer from unfavourable taxation, stringent legislative control and run high risks, now get a possibility to redomicile to the UAE and not to lose their records, properties and assets or minimalize non-inventory property.
Companies are able to continue their activities and administer international business affairs in other countries while being registered in the UAE. The UAE is opened for offshore companies, which possess all the required licenses for their activities.
Benefits of Redomiciliation to UAE
- No taxes are levied;
- Government's business support;
- Assets are safe and kept undisclosed;
- Carrying on business in the world’s main financial centre;
- United Arab Emirates is located on the crossroad of eastern and western trade routes;
- Numerous double taxation agreements.
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 memorandum, and resolutions. A provisional ‘Certificate of Continuation’ is issued by the local authorities, which allow the company to continue its operation under its own terms and conditions.
After getting a provisional certificate, the company has 3 months to submit document certificating that it is not subjected to the laws of the previous jurisdiction. Then it obtains in UAE the final certificate of continuation. The period of its validation starts from the date stated in the provisional Certificate of Continuation.
The incoming company operates under the following conditions upon continuation:
- All the assets and property of any type remain to be in the company’s possession;
- Despite the migration the company and its representatives are responsible for the previous liabilities of the company;
- It will be ineffective for a company to prosecute a claim concerning its liability or duties;
- It will be ineffective to take any administrative, civil or criminal actions or bring proceedings concerning the company;
- Any conviction that started before the redomiciliation of the company may be enforced by or against the company.
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