Why You Should Relocate Your Business to Dubai in 2024-
The United Arab Emirates is home to over 190 Nationalities, all living in harmony and an environment ranked among the safest countries in the world. The UAE’s government’s response to the Covid situation, 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 its citizens and its residents have been much of attraction amongst the affluent and the highly skilled workers. In recent years, we have witnessed a surge in High Networth Individuals (HNWI) relocating to the UAE. UAE has aimed to attract over 4,000 HNWI before the end of this year.
Dubai Free Zones Benefits-
To notch up the experience, the UAE government has made strides and rolled out incentives for businesses to relocate to the country. UAE Free Zones registries have rolled out re-domiciliation programs to encourage corporates to move their operations to the United Arab Emirates. UAE is a jurisdiction of choice for businesses since it ranks 17 per the 2020 Doing Business Report. UAE is making endeavors to improve its business friendliness through the introduction and adoption of technology and making it easier and faster for businesses to operate in the UAE. International Businesses can relocate to the UAE by redomiciling their businesses in the UAE.
Redomiciliation is a process where a company can change its place of incorporation to another country. Redomiciliation enables the business to change the applicable law of the company, the taxation, and its structure without changing its identity. Some reasons why businesses choose to redomicile are changes in banking regulations, changes in taxation laws, diminishing business opportunities, image and reputation of the country, increase in compliance and regulatory requirements, access to talent, business environment, and changes in the legal framework, among others.
Redomiciliation Process UAE-
The process of re-domiciliation involves deregistering the business from the country of incorporation and afterward registering the company in a different jurisdiction. The company receives a certificate of continuance from the new jurisdiction. The name of the company remains the same and so does its suffix. This allows the company to maintain its history, its clientele, and its assets. The company can choose to maintain its bank account in the country of origin or secure a local bank account in the new jurisdiction. The redomiciled company can then engage in licensed activities within the new jurisdiction. 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.
Free Zones in the UAE are offering to redomicile services and require the business to secure approval from the registry where the business would like to relocate. After the initial approval, the company can apply for a certificate of discontinuation in its country of origin and proceed to legalize the corporate documents of the company. The legalization process includes the notarization of company documents and then their attestation 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 amended Memorandum and Articles of Association based on the local laws. 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 that the companies then update their registry address with all the registers of their holdings, their clients, their existing banks, and ongoing agreements.
The process of redomicile in the UAE registries is much smoother after the certificate of discontinuation is received from the country of origin, however, it takes time to legalize the documents and produce them to the authorities. The legalization of documents can be an expensive exercise and may take up to 30 days to complete.
Dubai Business Relocation Services-
UAE Free Zones have introduced numerous incentives for foreign companies to redomicile to the UAE which includes reduced/exempted registration fees, lowered licensing fees, assistance with the applications, and continued support to the businesses. Unlike other countries, the licenses issued to companies bear specific activities from the predefined classification list and the approval of the activities is subjective. CBC team recommends a consultant that can assist in the evaluation of the application and then advise businesses on the choice of jurisdiction, and the appropriate structure, and then assist with the process within the Free Zones.