Redomiciliation means moving a company’s legal home to another country without dissolving an existing legal entity. The company keeps its same legal structure, operations, contracts and liabilities throughout the move. Enterprises often redomicile to the UAE for its business-friendly environment, favorable tax policies, strong infrastructure, Global credibility and full foreign ownership. UAE free zones also offer significant incentives including a 0% tax rate for qualifying businesses. Let’s get straight into this blog to explore practical insights on redomiciliation and why companies are preferably choosing the UAE for it.
Which Companies Are Eligible to Redomicile to the UAE?
Companies qualify only if their current jurisdiction allows redomiciliation. Those that don’t allow a direct move to the UAE must use a two-stage redomiciliation process.
Do you need a certificate of good standing?
Yes, you must provide a certificate of good standing from the original jurisdiction. It must be a recent certificate usually issued within the last six months. It proves legal compliance for tasks to operate in a new jurisdiction.
Do you need audited financials?
Yes, but audited financials are required for large companies, publicly traded companies or those seeking financing or selling their business.
Can a company with debts or disputes redomicile?
A company with ongoing legal disputes or debts is ineligible to redomicile. The redomicile process is suitable for stable and financially healthy companies. Such companies can opt for restructuring, liquidation or bankruptcy instead.
Do all shareholders need to approve the move?
Yes, all shareholders must approve the move. Exact requirements depend on the laws of the current jurisdiction and the company’s internal agreement.
Which UAE Free Zones Allow Redomiciliation?
DMCC, ADGM, DIFC and RAKEZ allow redomiciliation; the best choice depends on your activity, licence needs and industry requirements.
Which UAE free zones currently accept re-domiciliation?
DMCC, DIFC, JAFZA, DAFZA, DDA, Meydan, ADGM and RAKEZ are currently accepting re-domiciliation.
What is the difference between DMCC, RAK ICC, ADGM and Meydan redomiciliation?
- DMCC focuses on commodity trading and offers a strong infrastructure and ecosystem for trading companies.
- RAK ICC is an offshore company registration authority in Ras Al Khaimah that allows redomiciliation into one of its free zones.
- ADGM uses a common law legal framework with its own courts and is well-suited for financial services and holding companies.
- Meydan is a newer free zone known for its broad licensing options and has become a popular destination for redomiciliation.
Which free zone is better for trading companies?
DMCC and JAFZA are suitable options for trading companies due to their strong infrastructure which is ideal for handling commodities and goods.
Which is better for holding & investment companies?
ADGM and DIFC are ideal for holding and investment companies because they have their own legal systems and courts.
Which free zones offer the fastest approval timeline?
IFZA offers the fastest approval in the UAE for company formation with timelines dependent on the specific application.
| Free Zone | Estimated Cost | Approval Timeline | Best For | Activity Compatibility |
|---|---|---|---|---|
| DMCC | AED 20,000–40,000+ | 3–6 weeks | Trading, commodities, global businesses | Trading, services, e-commerce, consultancy |
| RAK ICC | AED 7,000–15,000 | 1–3 weeks | Holding companies, SPVs, offshore structures | Holding, investment, asset ownership |
| ADGM | AED 25,000–60,000+ | 4–8 weeks | Financial, investment, regulated entities | Funds, SPVs, fintech, investment firms |
| Meydan | AED 12,000–18,000 | 1–2 weeks | SMEs, consulting, digital businesses | Services, e-commerce, professional activities |
What Documents Do I Need to Redomicile My Company to the UAE?
A board resolution, shareholder approval, solvency declaration and jurisdictional approval are required to redomicile the company.
Do I need a board resolution?
Yes, a board resolution is required. This is a formal resolution passed by the company’s board of directors that approves the relocation of the business.
Do I need shareholder approval?
Yes, you will need shareholder approval via formal resolution. Shareholder approval and board resolution both authorize the redomicile process.
Do I need a solvency or no-debt declaration?
Yes, a solvency or no-debt declaration is required. This documentation is intended to verify the company’s financial condition and its ability to protect the creditor’s interest.
Do I need to close the company in the original jurisdiction first?
No, you don’t need to close the company’s original jurisdiction in redomiciliation.
What Is the Step-by-Step Process to Redomicile a Company to the UAE?
Collecting documents, securing a free zone license and preparing the company’s structure are included in a step-by-step process. It usually takes six to eight weeks but missing documents or requirements can cause delays.
What are the steps before filing the application?
Follow the steps below before applying:
- Gather all necessary documents
- Apply for a new free zone license.
- Fulfill the Minimum share capital and directorship requirements
- Secure office space in a free zone
What are the steps during the free zone review?
Here are the following things you need to do during the free zone review:
- Submission of comprehensive documentation
- Free zone authority review to ensure compliance.
What happens after the Certificate of Continuance is issued?
Legal changes take effect once the certificate of continuance is issued. Pay all applicable taxes and license fees. Register the redomiciled company with free zone authority to complete the process.
How long does redomiciliation usually take in the UAE?
The redomiciliation process takes at least six to eight weeks. Timing varies by company complexity and free zone rules.
What mistakes delay the process?
Here are the following mistakes that delay the process:
- Incomplete or inaccurate documentation
- Failure to meet free zone requirements
- Lack of planning
How Much Does It Cost to Redomicile a Company to the UAE?
Redomiciling to the UAE costs AED 22,000–40,000 depending on location, legal fees and free zone charges.
What are the mandatory government fees?
- Government fees range from AED 10,000 to 20,000.
- Legalization and attestation cost AED 5,000–8,000.
- Service providers charge AED 7,000–12,000 for handling the process.
What are the typical free zone fees?
RAKEZ starts at AED 5,699 while DIFC ranges from AED 20,000 to AED 40,000. DMCC looks for a minimum share capital of AED 50,000 per company.
What are the hidden costs competitors don’t mention?
Hidden costs based on complexity and legal hurdles are not fully captured in initial quotes. If you move employees, factor in settlement, severance and new visa costs.
Are there renewal fees after the move?
Yes , renewal fees are mandatory and must be paid annually to maintain the company’s license. These fees vary depending on the free zone and the nature of your business activity.
What Happens to My Bank Account, Contracts, Licenses and Employees After Redomiciliation?
When you redomicile, your existing bank accounts, contracts and licenses stay with the company. Employee visas transfer as well and your VAT or corporate tax status may change. You must register with the new jurisdiction’s tax authorities to stay compliant.
Do you need to open a new UAE bank account?
No, you don’t need to open a new UAE bank account but your existing account may need to be updated with the new registration details.
Can your existing bank account transfer to your new UAE entity?
The bank account remains with the company. You will need to inform the bank of the redomiciliation and provide updated documents to avoid potential blockage.
Do contracts stay valid after redomiciliation?
Yes, contracts remain valid and the company keeps its legal identity and history.
Can employee visas be transferred?
Yes, You can transfer employee visas to the new entity but you must follow the new jurisdiction’s visa process.
Does your VAT or corporate tax status change?
The jurisdiction you operate in determines your tax status. Failing to register and new jurisdiction’s rules can lead to penalties and legal problems.
What Are the Tax Benefits of Redomiciling to the UAE?
Companies benefit from a favorable tax system. Many businesses pay 0% corporate tax and there is no personal income tax on salaries, rental income or investments. You can freely repatriate profits and the UAE’s wide tax treaty network helps to prevent double taxation.
Does the company become a UAE tax resident?
Yes, after redomiciling a company becomes a UAE tax resident. A company becomes a UAE tax resident when it is incorporated or managed and controlled in the UAE.
What is the impact of the UAE’s corporate tax rules?
The standard corporate tax rate is 9% on taxable income above AED 375,000. Companies in certain free zones can get a 0% corporate tax rate on qualifying income if they meet the free zone’s requirements.
Can you benefit from UAE double tax treaties?
Yes, a redomiciled company can benefit from the UAE’s double tax treaties. The UAE has double tax treaties with more than 130 countries to reduce or eliminate double taxation for internationally operating companies.
How does redomiciliation affect withholding tax abroad?
Double tax treaties prevent double taxation and reduce tax rates. To claim the benefits of a DTT, a company must prove its tax residency in the new jurisdiction with a tax residency certification.
What Types of Businesses Should Not Redomicile to the UAE?
Businesses in litigation rarely qualify for redomiciling. Failing the solvency test forces a company to consider liquidation or restructuring instead of moving to the UAE.
Are companies involved in litigation allowed to redomicile?
Companies must be fully transparent and Dubai authorities usually do not allow businesses involved in litigation to redomicile during due diligence.
Should businesses with incompatible activities choose restructuring instead?
If a company’s activities don’t meet a UAE free zone’s rules, it cannot redomicile. Restructuring may be a better option instead of the redomiciling.
What if the company fails the solvency test?
If company fails the solvency test then:
- Directors can be personally liable for debts incurred after insolvency.
- May face fines up to AED 1 million and up to five years in prison.
- Can be banned from managing a company for up to five years.
What Are the Most Common Mistakes Companies Make During UAE Redomiciliation?
The following common mistakes companies make during their redomiciliation process:
-
Not preparing audited financials
Accurate and audited financial statements are a basic requirement for compliance especially with the corporate tax. Bad records or low audit readiness can trigger serious penalties.
-
Not updating business activities
Each UAE free zone or mainland authority has a specific list of approved business activities. Many companies assume their current activities will match but this often leads to license rejections or being unable to operate legally.
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Choosing the wrong free zone
Selecting the wrong free zone without considering long-term goals can be a major error. Your jurisdiction affects your ability to trade in the UAE mainland and access certain markets.
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Assuming banking will be automatic
UAE banks follow strict compliance AML and KYC rules. Many businesses face delays or account rejections when they lack proper documents, a clear business plan or proof of funds.
-
Ignoring tax residency timelines
Ignoring tax residency timelines like the VAT registration threshold or corporate tax registration and filing dates can lead to heavy fines.
Should You Redomicile or Start a New Company in the UAE Instead?
Starting a new company is quicker and cheaper while redomiciling helps you keep your structure, contracts and brand. Your goals determine the best option.
Which option is affordable?
New company setup is generally much cheaper as re-domiciliation involves higher legal and administrative costs.
Which option is faster?
New company setup is typically faster taking up to 1-3 weeks but re-domiciliation usually takes 4-8 weeks because it involves legal procedures in both original and new jurisdictions.
Which option has fewer compliance requirements?
Creating a new UAE company has far fewer compliance steps. Redomiciling requires complex checks, exit clearances and financial proof from your old jurisdiction whereas a new company only needs standard UAE licensing and annual filings.
Which option is better for banking?
Setting up a new company is better for banking because businesses have more access to UAE banks. Reconciliation keeps current banking but new accounts may be harder to open based on the entity type.
How KWS & CO Help You to Redomicile Your Company to the UAE?
Redomiciling your company to the UAE is a great move that helps you protect your corporate history while gaining access to a tax-efficient, globally reputable jurisdiction. KWS & CO manages the entire process end-to-end so you can transition smoothly without operational disruption.
- Free eligibility check: We assess your current company structure to confirm UAE continuation feasibility.
- Jurisdiction advice (DMCC / RAK ICC / ADGM / Meydan): We match your business with the most suitable UAE free zone.
- Document preparation: We prepare and organize all required corporate and compliance documents.
- Legal drafting: We handle all continuation forms and legal amendments required by the UAE authorities.
- Banking support: We assist with corporate bank account opening and smooth KYC processing.
- Fast-track submission: We manage your application end-to-end for quicker approval.