WHY YOU SHOULD CONSIDER RELOCATING OR EXPANDING YOUR INTERNATIONAL BUSINESS TO DUBAI IN 2023: ALL YOU NEED TO KNOW

The UAE is home to over 190 nationalities, all living in harmony and in an environment that is ranked as the second safest country in the world by the World Economic Forum (WEF). The UAE government’s response to the Covid-19 situation, with their tireless investment in the development of world-class infrastructure, adoption of international rules and regulations, development of tourism, minimal taxation regime, and lavish lifestyle of citizens and residents have been much of an attraction. In recent years, the country has also witnessed a surge in High-Net-Worth Individuals (HNWI) relocating to the UAE. The country has aimed to attract over 4,000 HNWI before the end of 2022.

WHAT HAS THE UAE ECONOMY PUT IN PLACE TO ATTRACT FOREIGN BUSINESSES TO THE UAE?

To notch up the experience, the UAE government has made strides and rolled out incentives for businesses to relocate to the country. The UAE Freezone registries have rolled out re-domiciliation programs to encourage corporate companies to move their operations to the UAE for improving business friendliness through the introduction and adoption of technology, thus making it easier and faster for their businesses to operate in the UAE.

WHAT ARE THE BENEFITS OF RELOCATING MY FOREIGN BUSINESS TO THE UAE?

International businesses can relocate/redomicile their businesses to the UAE. Re-domiciliation is a process where a company can change its place of incorporation to another country. Re-domiciliation enables the business to change the applicable law of the company, the taxation, and its structure without changing its identity.
We have listed the main reasons why businesses choose to relocate their foreign business and redomicile from their country of origin to the UAE including but not limited to:

• Better business opportunities in the UAE.
• More access to talent and business environment in the UAE.
• Prominent image and reputation of the UAE.
• Increase in compliance and regulatory requirements in the country of origin.
• Changes in banking regulations in the country of origin.
• Changes in taxation laws in the country of origin.
• Constant changes in the legal framework in the country of origin.

WHAT IS THE PROCESS TO RELOCATE YOUR INTERNATIONAL BUSINESS TO THE UAE?

The process of re-domiciliation includes de-registering the business from the country of incorporation and afterward registering the company in the UAE. The company then receives a certificate of continuance from the new jurisdiction (UAE). The name of the company remains the same and so does its suffix. This allows the company to maintain its history, clientele, and assets. The company can choose to maintain its bank account in the country of origin or secure a local bank account in the UAE. The redomiciled company can then engage in licensed activities within the UAE. If the business falls under the provision of regulation by a regulatory authority, the business is required to comply with it and secure a license from the regulatory body.

Freezones in the UAE are offering to redomicile services and require the business to secure approval from the UAE registry. After the initial approval, the company Creation Business Consultants apply for a certificate of discontinuation in its country of origin and proceed to legalise the corporate documents of the company. The legalisation process includes the notarisation of the company documents and attestation (to be completed from the UAE Embassy in the country of origin). The documents are then certified in the UAE and may require legal translation if they are not in English or Arabic. The jurisdiction then studies the documents and issues a certificate of continuation. The registry may issue an amended Memorandum and Articles of Association based on the local laws of the UAE. If required, the company can find an office space and sign a lease to hire employees in the company. With the certificate of continuation, the company can then approach the local banks to open a bank account. It is recommended a company updates their registry address with all the registers of their holdings, their clients, their existing banks, and ongoing agreements.

The process of re-domiciliation in the UAE registries is much smoother after the certificate of discontinuation is received from the country of origin, however, it takes time to legalise the documents and get approvals form the authorities in the UAE and you will require a registered corporate services provider who is qualified to complete the process.

TAKEAWAY

UAE free zones have introduced incentives for foreign companies to redomicile to the UAE which include reduced or exempted registration fees, lowered licensing fees, and continued support to a transferring business. Unlike other countries, the licenses issued to companies bear specific activities from the predefined classification list and the approval of the activities is subjective. Creation Business Consultants is a registered corporate service provider and our team of experts can assist you with the entire process of re-domiciliation and the legal procedures to relocate your international business to the UAE. Get access to a free consultation via email at [email protected] or call UAE +971 4 878 6240 and Saudi Arabia +966 54 511 2494

Author: Creation Business Consultants – Structuring & Business Development Departments