Top 10 reasons to migrate a business to the UAE
There are several reasons why a business should migrate to the UAE. Of course, there is a range of regulations and international standards to keep in mind when setting up and conducting business in and from low, or no, nominal tax jurisdictions.
What are the benefits of company migration?
To explain company migration - or re-domiciliation – it is the simple process whereby a company transfers its legal domicile from one jurisdiction to another while keeping its company history and track record.
Subject to compliance with corresponding legal requirements in both jurisdictions, the company is removed from the register in the jurisdiction of original incorporation and continues its legal existence as a company registered in the destination jurisdiction.
Corporate migration may be considered for a variety of reasons. Taking advantage of a more favourable legal and business-friendly environment, transferring an offshore business to onshore, fulfilling the new international standard of 'economic substance' requirements and gaining better proximity to clients and new markets.
Why the UAE?
The tax-friendly UAE has an extensive network of tax treaties with more than 80 countries, with even more treaties currently being ratified. There are also no exchange control restrictions and the possibility of unrestricted repatriation of income/profits and capital.
The UAE is home to world-class infrastructure, global connectivity, and the internationally recognised financial hubs of DIFC and ADGM. There is also a zero-tax regime, ongoing political stability, and a liberal business environment, which are all key features when considering company migration to the UAE.
To anyone not convinced of the clear advantages of migrating your company to the UAE, I would also add that we enjoy a very high quality of life, a safe and secure family environment and one of the lowest crime rates in the world.
In addition to the above points, there are several other factors to consider that positively affect company re-domiciliation to the UAE. These include:
The (legal) continuation enables a company to maintain its history and track record – while taking advantage of the benefits of the new destination's jurisdiction and the legal and business framework.
The company can retain existing relationships with clients and suppliers (eg., current contracts) and banking relationships.
Proximity to clients and new markets.
Taking advantage of a more favourable tax regime (including a network of double tax treaties) while also fulfilling Economic Substance Regulation (ESR) requirements.
A company can easily migrate from an offshore to an onshore setup.
Companies considering migrating to the UAE should also consider the following points:
The recognised and world-renowned financial hubs with internationally recognised financial, legal and tax services providers.
The company can retain existing relationships with clients, suppliers (eg. existing contracts) and banks.
No exchange control restrictions or possibilities of unrestricted repatriation of income/profits and capital
A safe and secure family environment with one of the lowest crime rates in the world, as well as political stability and liberal business.
Zero (income and corporate) tax regime.