Economic Substance Regulations UAE | Re-Domiciliation To The United Arab Emirates

July 20, 2020by Chinwe Azikiwe

NOW IS THE TIME TO CONSIDER RE-DOMICILIATION TO THE UAE

IN BRIEF

A major impact of the new Economic Substance Regulations (ESR) is that many jurisdictions are finding it difficult to provide the infrastructure to help companies maintain an adequate economic presence, and therefore meet these regulations.

In addition, many are being regarded as non-cooperative for tax purposes by the OECD blacklisted jurisdictions –  including but not limited to The Bahamas, Barbados, the Cayman Islands, Mauritius, Panama, Samoa, and the Seychelles.

The UAE remains a “whitelisted” jurisdiction and has seen a significant increase in companies re-domiciling to the UAE from the above jurisdictions, along with many others.

  1. WHAT IS RE-DOMICILIATION OR CORPORATE MIGRATION?

Re-domiciliation OR Corporate Migration is the process by which a company moves it’s place of registration from one jurisdiction to another jurisdiction, while maintaining the same legal structure and considering  the necessary legal provisions in both jurisdictions.

  1. WHY SHOULD YOU RE-DOMICILE YOUR COMPANY TO THE UNITED ARAB EMIRATES?

The United Arab Emirates (UAE) is blessed with a strategic location between the east and west, which makes it accessible to major emerging economies, linking shipping routes and facilitating goods‘ transportation between the various regions in Middle East, Asia, Europe and Africa. The UAE is positioned as a prime international business Hub with numerous advantages for businesses and business investors alike , so now is the best time for foreign entities to consider re-domiciliation to the UAE. Foreign companies can re-domicile to UAE as free zone companies (e.g. DMCC Free Zone Company), as offshore companies (e.g. RAKICC International Company) and as Common Law vehicles (e.g. DIFC Company) depending on their unique requirements.

  1. WHAT ARE THE BENEFITS OF RE-DOMICILIATION TO THE UAE?
  • Zero corporate or income tax;
  • Keep same trade name, financials, shareholding, bank accounts, management, debtors and creditors arrangements;
  • Improve asset and wealth protection in respect of creditors and confidentiality;
  • Facilitate banking transactions and international/ local bank accounts opening by being in a white list jurisdiction
  • Improve corporate governance,  risk assessment and compliance by being in a real mainland jurisdiction and not in an offshore financial center;
  • Improve estate planning and transfer of shares through local structuring
  • Obtain UAE residency permits for tax optimisation (CRS, tax residency, ESR, management & Control,  Effective Management);
  • 100% capital and profit repatriation;
  • Rapid re-domiciliation process;
  • Access to laws and courts (including arbitration system) based on English Common Law;
  • World class infrastructure;
  • Availability of a large pool of multicultural skilled professionals;
  • Ease of doing business;
  • Economic, political and social stability;
  • Access to a number of local and international banks;
  • Protection of intellectual property rights;
  • Favourable business regulations;
  • Open and fast growing economy.

For Support and assistance on Re-domiciliation Get in Touch with our Corporate Team Today 

Wincore specializes in Tax, Corporate and Fiduciary matters. We provide pragmatic, flexible and efficient solutions to individual entrepreneurs, startup businesses, foreign and local SMEs, multinationals, wealthy international families, HNWIs and UHNWIs.

Wincore Advisory Group’s full range of services on : CRS (AEOI) – OECD exchange of information ; Economic Substance Regulations; Trust & Foundation; Asset protection, Estate & Tax Planning; Corporate Services; Sophisticated UAE Sponsorship Planning; Debt Collection Services in UAE; Residency & Citizenship Services ( Foreign second passports).

mm

Chinwe Azikiwe

Senior Business Advisor | E: c.azikiwe@wincoreadvisory.com | M: +971 (0) 50 630 0821

error: Content is protected !!

Sign up for our News & Alerts

Don’t like emails?
Just follow us on Linkedin or Twitter to get the latest news in our feed.