Over the years, re-domiciliation of companies has become a widely adopted concept in the UAE, particularly with regard to offshore businesses. Re-domiciliation or transfer of domicile means the transfer of a company’s registered address from one jurisdiction to another. As the global laws for tax transparency and anti-money laundering have become increasingly stringent, numerous offshore companies are considering moving their domicile to the UAE.
Let’s consider the example of the Commonwealth of Dominica, which used to be a popular offshore jurisdiction a few years ago. However, Dominica in 2021 announced the closure of its International Business Companies (IBC) registry. One of the reasons behind this move was the growing pressure on the Dominica government for tax compliance and its being placed on the EU’s blacklist of non-cooperative jurisdictions for tax purposes.
Why Offshore Companies Consider Re-domiciliation?
Blacklisting of jurisdictions and regulatory changes are the major drivers behind re-domiciliation of offshore companies. Another key reason for migration is tax optimisation. The new jurisdiction might offer more favorable tax laws than the other. Also, the new jurisdiction may simply offer a better environment for conducting the core business activities.
With re-domiciliation, a company is entitled to retain the following:
- Existing legal status
- Operational history and company records
- Banking history
- Business name, clients, and assets
The UAE Advantage for Offshore Company Re-domiciliation
Here are a few prominent reasons to change your company domicile to the UAE:
- Ease of doing business
- Whitelisted by the EU
- Bilateral Investment Treaties (BITS) with numerous countries for investment protection
- Withholding Tax benefits
- Excellent banking network
- Low Corporate Tax rates (9%)
- Double taxation avoidance agreements with numerous countries
- Compliance with the international AML/CFT standards
Steps for Changing the Domicile of an Offshore Company to the UAE
Change of domicile for offshore companies can be only done through a registered agent. Here is the series of steps through which re-domiciliation of an offshore company can be completed:
1. Initial application
A request for a change of domicile is submitted to the concerned authorities.
2. Name check
A name check is conducted for the availability of your business name with the registry.
3. Preparation of company documents
You must submit the required documentation to the registered agent. The company documents will be prepared by the registered agent.
4. Signing of company documents
You will be required to sign the company documents prepared by the registered agent.
5. Submission of continuation documents and KYC requirements
The registered agent will submit the list of continuation documents as well as KYC requirements for individual/corporate shareholders and Ultimate Beneficial Owners (UBOs).
6. Due Diligence review by the authorities
Your submitted application and documents will be reviewed. In select cases, you may be required to produce additional documents related to bank transactions, shareholder profiles, and so on.
7. Issuance of Certificate of Continuation
Once your application has been accepted and you have completed the necessary payments, a Certificate of Continuation will be issued, indicating a successful transfer of domicile.
Why Transfer Domicile to RAK ICC?
As the UAE’s topmost offshore jurisdiction, RAK ICC gives you the following benefits:
- Reputation as a stable jurisdiction
- A simplistic incorporation procedure
- A straightforward re-domiciliation process
- Robust compliance procedures
- Business-friendly environment
- Access to both common and local law courts
- Short timeframe for company setup
- The UAE’s most cost-effective offshore jurisdiction
- Availability of diverse company structures
Choose InZone as Your Registered Agent
As mentioned earlier, offshore company setup and re-domiciliation can be only completed through a registered agent in the UAE. InZone can act as your registered agent and manage the entire procedure related to the migration of our company. From the application filing to name checks and document preparation, our seasoned professionals will take care of the entire process. Additionally, we can also assist you with bank account opening with local and international banks.
