Corporate Redomiciliation to the UAE: A Strategic Move for Global Businesses
The United Arab Emirates (UAE) has rapidly evolved into one of the world’s most attractive business hubs. Its strategic location, business-friendly environment, and strong legal framework make it a preferred destination for corporate re-domiciliation.
Redomiciliation, or corporate migration, allows businesses to move their legal jurisdiction without altering their corporate structure, operations, or brand identity.
As of 2024, the UAE has solidified its position as a key financial and business center in the Middle East, with Abu Dhabi and Dubai leading the way. According to the Financial Times, Abu Dhabi Global Market (ADGM) reported a 215% increase in assets under management over the past year, driven by foreign firms seeking stable and tax-efficient jurisdictions.
This guide explores the benefits, process, and key considerations for redomiciling to the UAE, providing businesses with a clear roadmap for making an informed decision.
What Is Corporate Redomiciliation?
Corporate re-domiciliation or migration is the legal process that allows a company to transfer its place of incorporation from one country to another while maintaining its legal identity, business operations, and history. This move enables businesses to benefit from a more favorable tax and regulatory environment without the need for liquidation and re-establishment.
A redomiciled company receives a Certificate of Continuance in its new jurisdiction, allowing it to maintain its original incorporation date. This process is particularly beneficial for companies looking to streamline international operations, optimize tax obligations, and strengthen global market access.
Why Choose the UAE for Redomiciliation?
1. Favorable Tax Environment
The UAE offers one of the most attractive tax regimes in the world. Companies operating in UAE Free Zones enjoy 0% corporate tax, full repatriation of profits, and exemption from import/export duties. However, the UAE has introduced a 9% corporate tax on mainland companies earning over AED 375,000 annually
Key Benefits:
- 0% corporate tax in most Free Zones
- No personal income tax
- 100% foreign ownership permitted in Free Zones
2. Strategic Global Location
The UAE’s geographic position offers unparalleled access to major global markets. Dubai International Airport is the busiest airport for international travel, connecting businesses with Europe, Asia, and Africa. Additionally, Jebel Ali Port is one of the largest container ports in the world, facilitating trade across continents.
3. Strong Regulatory Framework and Business-Friendly Policies
The UAE government has implemented several policies that promote ease of doing business. The World Bank ranks the UAE 16th in the world for ease of doing business, with a streamlined licensing process and minimal bureaucratic hurdles
4. Advanced Financial and Business Infrastructure
The UAE boasts world-class infrastructure, including:
- Advanced banking and financial services
- High-speed digital transformation initiatives
- Stable political and economic environment
Where to Redomicile? Best Free Zones in the UAE
Several Free Zones in the UAE permit corporate redomiciliation. Companies should choose a Free Zone based on their industry, regulatory needs, and operational structure.
1. Abu Dhabi Global Market (ADGM)
- Specializes in financial services, fintech, and asset management
- Regulatory environment modeled after the UK’s common law system
- Home to 759 newly registered businesses in Q3 2024
2. Dubai International Financial Centre (DIFC)
- Preferred choice for banking, legal, and insurance companies
- Governed by an independent judicial system based on English common law
3. Dubai Multi Commodities Centre (DMCC)
- Ideal for trade, commodities, and logistics companies
- Ranked ‘Global Free Zone of the Year’ by the Financial Times for eight consecutive years
4. Jebel Ali Free Zone (JAFZA)
- One of the largest industrial and logistics hubs in the region
- Home to over 9,500 companies from more than 130 countries
Comparing Redomiciliation Options in UAE Free Zones
Below is a comparison of key UAE free zones that permit corporate migration:
| Free Zone | Key Benefits | Industries Covered | Residency Requirements | Annual Costs (Approx.) |
|---|---|---|---|---|
| Abu Dhabi Global Market (ADGM) | International financial center with common law framework | Finance, fintech, investment firms | At least 1 UAE-resident signatory | $12,000 - $20,000 |
| Dubai International Financial Centre (DIFC) | Regulatory environment similar to top financial hubs | Banking, legal, consultancy, trading | At least 1 UAE-resident director | $15,000 - $25,000 |
| Dubai Multi Commodities Centre (DMCC) | Largest free zone with over 22,000 companies | Commodities, trade, crypto, gold, diamonds | At least 1 UAE-resident director | $10,000 - $18,000 |
| Jebel Ali Free Zone (JAFZA) | Ideal for manufacturing and logistics | Industrial, trading, logistics | UAE-resident manager required | $8,000 - $15,000 |
| Ras Al Khaimah Economic Zone (RAKEZ) | Low-cost option with flexible licensing | SME-friendly, industrial, trading | Minimum presence required | $5,000 - $12,000 |
Steps to Redomicile to the UAE
The redomiciliation process involves multiple steps and requires thorough preparation.
Step 1: Obtain Approval from Current Jurisdiction
- Confirm that the current jurisdiction allows corporate migration
- Obtain a No Objection Certificate (NOC) from the local business registrar
Step 2: Choose a UAE Free Zone
- Evaluate licensing requirements, operational costs, and permitted business activities
Step 3: Submit Redomiciliation Application
- Prepare Articles of Continuance
- Provide notarized copies of Certificate of Incorporation, Memorandum, and Articles of Association
Step 4: Establish UAE Operations
- Secure an office lease agreement
- Appoint local directors or authorized signatories, if required
Step 5: Register with UAE Authorities
- Obtain a Certificate of Continuance
- Cancel registration in the previous jurisdiction
The process typically takes 6-8 weeks, depending on document preparation and regulatory approvals.
Legal and Compliance Considerations
1. UAE Corporate Tax Compliance
- Free Zone companies must maintain an economic substance to benefit from tax exemptions
- Companies earning over AED 375,000 in revenue must register for corporate tax
2. Licensing and Regulatory Requirements
- Each Free Zone has specific licensing requirements based on industry type
- Some Free Zones require at least one resident director
3. Employment and Visa Policies
- Businesses must provide residency visas for expatriate employees
- UAE’s Golden Visa program offers long-term residency to investors and business owners
Legal and Compliance Considerations
While the UAE offers numerous benefits, companies must comply with economic substance requirements (ESR), Ultimate Beneficial Ownership (UBO) regulations, and AML (Anti-Money Laundering) policies. These ensure legitimacy and prevent tax evasion.
Failure to comply can result in penalties ranging from AED 10,000 to AED 1,000,000
Tax Benefits of Redomiciling to the UAE
| Tax Type | UAE | United States | United Kingdom | Hong Kong |
| Corporate Tax | 0% (for most businesses) | 21% | 19% | 16.5% |
| VAT | 5% | Varies by state | 20% | 0% |
| Personal Income Tax | 0% | Up to 37% | Up to 45% | 0% |
| Capital Gains Tax | 0% | 15-20% | 10-28% | 0% |
The UAE’s strategic location, favorable tax policies, and robust financial infrastructure make it a prime destination for corporate redomiciliation. With a streamlined legal framework and a variety of Free Zones catering to different industries, businesses can seamlessly transition their operations while optimizing tax efficiency and global market access.
If you are considering redomiciliation to the UAE, Affinitas DMCC provides expert guidance to navigate the process. Contact us today to learn more about how we can assist in making your corporate migration seamless and compliant.
