Re-Domiciliation to Dubai: Opportunities and Steps

The relocation of a company's headquarters to Dubai, also known as re-domiciliation, offers businesses the opportunity to benefit from the attractive conditions of the Emirates. Over the past decades, Dubai has developed into a leading global investment hub, particularly due to its numerous free zones that provide various advantages.

What is Re-Domiciliation?

Re-domiciliation allows companies to transfer their legal domicile from one jurisdiction to another without losing their legal identity. Assets, liabilities, and existing contracts remain intact, and business operations can continue without interruption. This process is often more cost-effective and efficient than liquidation and re-establishment.

Why Dubai?

Dubai offers ideal conditions for businesses, including:

• 100% foreign ownership in free zones
• Tax advantages, such as no corporate tax under certain conditions
• No restrictions on capital and currency repatriation
• Specialized free zones for specific industries, such as the Dubai Multi Commodities Centre (DMCC) or Dubai Internet City (DIC).

Additionally, Dubai provides a strategic location with access to markets in Europe, Asia, and Africa.

Steps to Re-Domiciliation

The process can be divided into two phases:

1. Exit from the original jurisdiction:
• Obtain approval from local authorities
• Prepare necessary documents such as articles of association, business profile, and shareholder resolutions
2. Registration in Dubai:
• Obtain preliminary approval from the free zone
• Sign new articles of association and apply for a business license
• Rent office space and pay required fees

After completing these steps, the new business license is issued, and the company is officially registered in Dubai.

Challenges and Tips

The process requires careful planning, as the requirements of both the original and target jurisdictions must be considered. Legal and tax consulting is essential. Practical aspects such as opening a bank account and complying with KYC checks should also be planned in advance.