Corporate Redomiciliation

Corporate re-domiciliation is the process by which a company moves its domicile from one jurisdiction to another by changing the country under whose laws it is registered or incorporated, while maintaining the same legal identity thus avoiding possible tax and other implications in the country of origin.

An additional and equally important advantage is that the business of the company can continue without interruption and hence there will be a significant savings in administration and other costs.

Cyprus, Malta and Marshall Islands are the best examples of countries that recognizes re-domiciliation of foreign companies.  A foreign company which allows re-domiciliation and which the company’s Memorandum and Articles of Association provide for the possibility of re-domiciliation may apply to the Registrar of Companies as a continuing company pursuant to the provision of the prevailing laws into each jurisdiction.

Companies re-domicile to take advantage of favourable features, including:

  • tax-exempt dividend income
  • no withholding taxes on payments of dividends, interest and royalties irrespective of recipient
  • no taxation on profits from the sale of securities
  • wide tax treaty network
  • no substance, debt-equity and thin capitalization rules
  • less stringent regulatory provisions
  • to align their place of registration with their shareholder base
  • to access specialist business  markets.

PRUDENTER GROUP DUBAI can assist a company to choose to move the more appropriate jurisdiction anywhere in the world, provided that the foreign company is registered in a country which allows re-domiciliation.