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Re-Domiciliation: A Strategic Move for Companies Eyeing the UAE
This maneuver offers a seamless transition, and the United Arab Emirates (UAE) has emerged as a premier destination for such transitions. The UAE’s numerous free zones and well-established legal frameworks make it an attractive locale for re-domiciliation.
Diverse Motivations for Re-Domiciliation
Companies pursue re-domiciliation for various reasons, including commercial, practical, taxation, and legal considerations.
Key considerations include:
Author: Ziad Chebli Partner – Corporate Department , Hamdan AlShamsi Lawyers & Legal Consultants
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- Tax Efficiency: Companies seek favorable tax regimes to optimize their tax liabilities.
- Regulatory Environment: Operating within a more lenient regulatory framework can enhance operational flexibility.
- Market Access: Better access to key markets can drive business growth.
- Stability: Enhanced legal and political stability offers a more secure business environment.
- Operational Efficiency: Improved infrastructure and resources can streamline operations.
- Investment Opportunities: Access to new investment avenues can foster expansion.
- Skilled Labor: A skilled workforce can bolster business capabilities.
- Brand Reputation: A UAE base can enhance a company’s global brand image.
- Industry-Specific Advantages: Legal and operational advantages tailored to specific industries.
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- Compliance with Original Jurisdiction: Adherence to the legal requirements of the original jurisdiction is fundamental.
- Valid Purpose: Companies must demonstrate a legitimate business purpose for re-domiciliation.
- Legal Framework: The original jurisdiction’s laws must permit the transfer of incorporation.
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- Legal Compliance: The re-domiciled company must comply with UAE law and relevant free zone regulations.
- Operational and Tax Implications: The process impacts various operational and tax aspects.
- Free Zone Selection: Choosing the appropriate free zone requires careful consideration of business activities, residency requirements, and compliance obligations.
Author: Ziad Chebli Partner – Corporate Department , Hamdan AlShamsi Lawyers & Legal Consultants