Redomiciliation is a process by which a company moves its Domicile (place of incorporation) from one jurisdiction to another. The entity can maintain the same legal identity, its history, and the process won’t affect its assets, obligations and liabilities.
* 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’.
WHY REDOMICILIATION
Companies Redomicile for a variety of reasons including:
* Benefit From A Favorable Tax Environment
* Repatriation Flexibility in new jurisdiction
* Platform for foreign growth and acquisitions
* Align their place of registration with their shareholder base
* Move to an International Financial Center
* Migration of Intellectual Property
* In case of any changes in the rules and regulations in the country where the enterprise have been registered
KEY BENEFITS OF REDOMICILING TO UAE
* 100% Foreign Ownership and 100% Repatriation
* Most Awaited Expo 2020 is going to be hosted by Dubai, one of the seven Emirates in UAE
* 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
* Access to the MENA Market as a whole
* Favorable Tax Environment
FEW JURISDICTIONS IN UAE WHICH ALLOWS REDOMICILIATION
* 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
DMCC FREE ZONE
In 2002, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Prime Minister, Vice President of the UAE and Ruler of Dubai, issued a decree to create a commodities center to stimulate trade flows through the Emirate.
Today, DMCC is the largest and fastest growing Free Zone in the region with over 12,500 member companies licensed across a wide range of sectors. DMCC is the region’s largest and fastest growing Free Zone. DMCC registers more than 200 companies a month, 95% of which are new to Dubai.
DMCC attracts high volumes of Foreign Direct Investment into Dubai from different countries across the world, DMCC is also able to retain and enhance these investments by providing their members with the right platforms to grow their businesses.
DMCC Free Zone is the ideal place to set up your company in Dubai quickly and grow your business locally and internationally.
REDOMICILIATION TO DMCC
An Entity, incorporated outside the DMCC Free Zone, can move into the DMCC Free Zone, without having to undergo the process of dissolution or winding-up in its original jurisdiction and incorporation of new company incorporation in the DMCC Free Zone.
Offshore companies which have been operational for the past two years and are able to submit audited financial statements shall be permitted to redomicile into the DMCC Free Zone. However, offshore companies will not be able to retain their off-shore status while Redomiciliation to DMCC and will assume all features of an ordinary DMCC Free Zone member company.
PRE REQUISITES
* The Non-DMCC Entity must be company of “good standing”
* The Entity must not be subject to any ongoing investigations or sanctions
* The Entity must not be subject to any insolvency or liquidation proceedings
* The Entity may not apply to DMCC for a transfer of incorporation if it is in possession of a preliminary approval for a transfer of incorporation from any other regulatory authority.
* The entity’s intended business activity and trade name must be in compliance with the regulations of DMCC
* The Company’s shares must only be of one class
* Minimum share capital should be AED 50,000
* The Entity must have a minimum of one and a maximum of six Directors, one License Manager and minimum of one HR Signatory.
RAS AL KHAIMAH INTERNATIONAL CORPORATE CENTER (RAKICC)
RAK International Corporate Centre (RAKICC) is an IBC jurisdiction operating in Ras Al Khaimah. The Emirate of Ras Al Khaimah is one of the greatly developed Emirates of the United Arab Emirates providing an ideal location for International Business.
KEY BENEFITS
* RAKICC is a highly stable and recognized jurisdiction
* Can be fully owned by a foreign individual
* Ease of international operations
* Asset protection and investment diversification
* Quick Incorporation Process and low registration fee
* Availability of Registered Agent
* NO office required
As per RAK ICC Business Companies Regulations 2016, IBC (International Business Company) in any part of the world is permitted to transfer its domicile to RAKKIC jurisdiction. As the result of transfer the Company keeps its name and legal status, the reputation can be maintained, the records of company’s activities are intact.
ARE YOU LOOKING TO MIGRATE TO UAE
The ability to migrate companies to UAE opens tax planning dimensions for investors and businessmen. Foreign companies can Redomicile and enjoy various benefits provided by the UAE corporate tax free regime and its wide network of double tax treaties.
Being an expert in setting up companies in UAE and assisting Free Zone and Offshore companies in transferring the Domicile to UAE jurisdictions, our consultant Anoop Cheerathodi will be delighted to receive your inquiries at info@dubaibusinessadvisors.com or you can contact him at+971 50 911 0516
