In today’s dynamic global market, businesses are constantly seeking jurisdictions that offer better infrastructure, tax advantages, regulatory ease, and market access. One strategic move that companies can consider is re-domiciliation, the process of relocating an existing company from one jurisdiction to another without dissolving the original entity.

What is Redomiciliation?

Redomiciliation allows a company registered in one country to change its legal domicile to another, essentially transferring its place of incorporation. Unlike forming a new company, re-domiciliation lets businesses retain their legal identity, assets, and operating history.

Why Consider Dubai?

Dubai has become a global business hub known for its zero income tax, strategic location, and business-friendly environment. Whether you’re looking to reduce tax liabilities, access new markets, or benefit from the UAE’s stable economy, re-domiciling your company to Dubai could be the competitive edge your business needs.

Companies across various sectors opt for company formation services in Dubai due to the flexibility and growth opportunities offered by the emirate's vibrant economy and liberal trade policies.

Understanding Company Redomiciliation

Definition and Purpose

Redomiciliation is a legal process enabling companies to migrate their legal status from one jurisdiction to another. The key aim is to relocate operations without dissolving the business or starting a new.

Benefits of Setting Up a New Company                                                                          

• Continuity of Business Operations

• Retention of Legal Identity and Contracts

• Simplified Compliance and Transition

This approach is especially beneficial for companies with significant existing operations or those bound by international contracts.

Global Trends in Redomiciliation

An increasing number of international companies are re-domiciling to jurisdictions like the UAE, Singapore, and Luxembourg, seeking regulatory ease and better tax structures. The trend is particularly noticeable among fintech, IT, and manufacturing sectors.

Why Re-domicile to Dubai?

1. Strategic Location

Dubai offers access to Asia, Europe, and Africa, making it an ideal base for international trade and logistics. Its world-class ports and airports further support global connectivity.

2. Favourable Tax Environment

Dubai’s tax-free regime for many sectors, combined with its network of Double Taxation Avoidance Agreements (DTAAs), provides immense tax relief for foreign companies.

3. Ease of Doing Business

The UAE ranks among the top jurisdictions for ease of doing business, supported by streamlined regulatory processes, digital government services, and robust infrastructure.

4. Access to International Markets

By relocating to Dubai, companies gain entry to GCC countries, the Middle East, North Africa (MENA), and beyond—an excellent springboard for global expansion.

Legal Framework for Redomiciliation in Dubai

Regulatory Bodies

Several free zones and financial centers in Dubai allow re-domiciliation, such as:

• Dubai International Financial Centre (DIFC)

• Dubai Multi Commodities Centre (DMCC)

• Dubai Silicon Oasis (DSO)

• Dubai Airport Freezone (DAFZA)

Many companies prefer free zone company formation in Dubai as it offers 100% foreign ownership, tax exemptions, and simplified compliance requirements.

Laws Governing Redomiciliation

Redomiciliation is governed by specific laws in free zones and the UAE Commercial Companies Law in certain cases. Each jurisdiction may have unique requirements and compliance protocols.

Eligible Business Structures

Typically, Limited Liability Companies (LLCs), private joint-stock companies, and foreign corporations can apply for re-domiciliation, subject to approval.

Who Can Redomicile to Dubai?

Types of Companies Allowed

Eligible entities include:

• International Private Companies

• Offshore Holding Firms

• Publicly Listed Corporations

• Tech and Fintech Startups

Industry-Specific Requirements

Certain sectors, such as finance, healthcare, and education, may have industry-specific licensing or regulatory requirements from bodies like the Central Bank or the Ministry of Health.

Common Scenarios

• Seeking a better tax regime

• Business expansion to the MENA region

• Political instability in the original jurisdiction

• Access to the new investor base

Step-by-Step Process to Redomicile a Company to Dubai

Step 1: Board and Shareholder Resolution

The re-domiciliation process starts with a formal resolution passed by the company’s board and shareholders to relocate the business.

Step 2: Due Diligence and Legal Compliance

Perform internal audits, legal checks, and compliance reviews. Dubai authorities require full transparency before accepting applications.

Step 3: Application to Dubai Authorities

Submit an official application along with documents to the selected free zone or mainland authority. This includes corporate, financial, and legal paperwork.

Step 4: Deregistration from Original Jurisdiction

Begin the deregistration process in the current country of incorporation. Many jurisdictions require proof of re-domiciliation approval in the destination country.

Step 5: Issuance of License and Operational Setup

Once approved, the new business trade license in Dubai is issued, and you can proceed with bank account opening, office setup, and operational restructuring.

Documentation Required

• Certificate of Incorporation (original jurisdiction)

• Memorandum and Articles of Association

• Board and Shareholder Resolutions

• Latest Audited Financial Statements

• No Objection Certificate (if applicable)

• Legal Clearances from the original jurisdiction

Additional documents may be required depending on the free zone or business activity.

Timeframe and Costs

1. Average Processing Time

The re-domiciliation process typically takes between 6 to 12 weeks, depending on the complexity and the jurisdictions involved.

2. Breakdown of Potential Costs

• Government processing fee: AED 10,000–30,000

• Legal consultancy: AED 5,000–15,000

• Licensing fee: Varies by zone

• Office space: AED 10,000 onwards

3. Hidden Charges to Watch For

• Notarization and attestation fees

• Translation of documents

• Termination charges from the original jurisdiction

Challenges in Redomiciling

1. Legal and Regulatory Hurdles

Ensuring legal compliance in both jurisdictions is critical. Variations in corporate laws can cause delays if not addressed early.

2. Cultural and Operational Differences

Adapting to local business culture, labour laws, and HR regulations may require operational adjustments.

3. Compliance with International Laws

Cross-border migration involves aligning with global standards like AML, KYC, and data protection laws.

Best Practices for a Smooth Transition

Work with Local Experts

Hiring experienced legal and business consultants in Dubai ensures accurate document handling and faster processing.

Maintain Transparent Communication

Notify all stakeholders, banks, clients, and vendors about the move and maintain transparency throughout the process.

Data and Asset Migration Strategies

Implement secure data backup and migration plans to protect intellectual property and sensitive information during the transition.

Tax Implications of Redomiciliation

UAE Corporate Tax Overview: The UAE introduced a 9% corporate tax from June 2023, but many businesses in free zones continue to enjoy exemptions based on specific criteria.

Avoiding Double Taxation: With over 130 DTAAs, Dubai helps companies avoid being taxed twice on the same income.

VAT and Import Duty Considerations: Companies must register for VAT (5%) if their annual turnover exceeds AED 375,000 and comply with customs duty regulations when importing goods.

Post-Re-domiciliation Setup

Office Space and Infrastructure: Choose from flexi-desks, serviced offices, or full commercial spaces based on business requirements and licensing authority.

Hiring and HR Considerations: Comply with UAE Labour Law, register employees with MOHRE, and offer valid employment contracts and visas.

Marketing and Business Development: Leverage Dubai’s global reputation to build partnerships, run digital campaigns, and establish local visibility.

Lessons Learned

• Work with the right free zone

• Don’t underestimate document preparation

• Begin banking arrangements early

Alternatives to Redomiciliation

If re-domiciling isn’t feasible, consider:

Opening a Branch Office: Operate under the parent company’s name without forming a new legal entity.

Setting Up a Subsidiary: Establish a new company legally owned by the foreign parent company.

Business Partnership with Local Firms: Collaborate with UAE-based entities to access the market without legal migration.

Final Thoughts

The re-domiciliation process may seem complex, but with proper guidance and execution, it can unlock significant advantages. From tax savings to better market positioning, the move to Dubai is a strategic decision for forward-looking companies.

Looking to move your business to Dubai?

At Bizex LLC, we simplify the re-domiciliation process by offering end-to-end support from initial feasibility checks and legal compliance to office setup and licensing. Our experts understand the nuances of company migration and are here to help you make a smooth transition into the UAE market.

Take the first step toward relocating your business to Dubai. Contact us today for a personalised consultation.