Redomiciliation is a change of the country of registration of a company without the need to liquidate it. This procedure allows a business to move its legal address to a more favorable jurisdiction, while retaining its name, structure, contracts and reputation. Thanks to this, your company, which was registered, for example, in an offshore jurisdiction, gets a second chance to continue working in a favorable tax environment.
Why do companies change jurisdiction?
Maira Consult lawyers highlight the main reasons for transferring a company from one country to another jurisdiction (redomiciliation):
- Change of legislation;
- Cancellation of tax benefits in the current jurisdiction;
- Implementation of requirements for real economic presence (substance);
- Inclusion of the country in the sanctions lists;
- Frequent changes in local legislation that complicate business;
- Change of key partners and counterparties;
- Intention to enter international markets;
- Significant increase in the cost of maintaining the company;
- Introduction of strict currency control;
- Inability to open bank accounts;
- Economic instability or risk of default in the country.
Which countries allow redomiciliation (transfer of a company to another jurisdiction)?
The redomiciliation procedure is possible only in countries that provide for it at the legislative level. Such jurisdictions include:
At the same time, in countries such as Poland, Switzerland or UK redomiciliation is prohibited, and businesses cannot transfer the company to another jurisdiction, but are forced to go through the process of liquidation and creation of a new legal entity.
What changes during redomiciliation?
When changing jurisdiction, a company retains its original corporate name (provided that it is not registered in a new country), legal form, ownership structure, and assets. The main difference between redomiciliation is that the legal address and registration agent are updated. The date of the company's foundation also remains unchanged, which allows you to preserve its business history and reputation.
Stages of company redomiciliation:
The process of transferring a company to another country (redomiciliation) includes the following key stages:
- Assessment of the company's status and compliance with the requirements for redomiciliation.
- Choosing a new jurisdiction based on business goals.
- Preparation of the required package of documents.
- Obtaining a permit for redomiciliation in the current country.
- Checking the possibility of using the existing name in the new jurisdiction.
- Submitting a request for redomiciliation in the chosen country.
- Obtaining a certificate of relocation (Certificate of Continuation).
- Removal of the company from the register of the country of initial registration.
How can Maira Consult help?
International law firm Maira Consult provides comprehensive support for redomiciliation, including analysis of the client's current situation, selection of the optimal jurisdiction for the company's transfer, preparation of documents, interaction with registration agents and state regulators. We guarantee a quick and safe transfer of the company to a new jurisdiction without unnecessary risks.
Contact Maira Consult and we will help your business find the best jurisdiction to develop and maintain competitive advantages.
