Redomiciliation in the UAE: essence, advantages, and hidden risks. Insights from RSBM experts

In this article, we’ll examine when redomiciliation can be truly beneficial, who typically chooses this path, what risks must be considered, and—most importantly—how RSBM ensures that the process is fast, secure, and smooth from start to finish.

Redomiciliation is the process of transferring a company’s legal registration from one country to another without closing the business or re-registering its assets. Unlike relocation, which involves creating a new legal entity, redomiciliation preserves:

•the corporate structure
•the company’s financial and operational history
•contracts, licenses, and bank accounts
•reputation and legal continuity

This is particularly important for businesses that want to change their jurisdiction without losing accumulated experience and established partnerships.

For many companies, redomiciliation becomes a strategic step amid legislative changes, sanctions pressure, increasing tax burdens, or simply the desire to move operations to a more stable and attractive market.

Redomiciling to the UAE offers several key advantages:

•access to a more favorable tax regime—with 0% corporate income tax in most cases
•legal certainty and no currency controls
•continuity of operations with no disruptions or loss of assets
•full retention of corporate identity and track record

The UAE is one of the few jurisdictions with a clearly regulated redomiciliation process, making it especially appealing for international companies seeking a stronger, more stable base for growth.

Redomiciliation is particularly relevant when:

•your current jurisdiction is becoming unstable or unpredictable
•you want to optimize taxes and reduce costs without starting a new business from scratch
•it’s critical to retain contracts, banking relationships, and licensing history
•you’re planning international expansion and need a transparent, globally recognized platform for growth

If your business is already active, profitable, and has accumulated assets, redomiciliation may prove far more effective than relocation.

What risks and challenges should be considered?

Despite its advantages, redomiciliation is not a simple change of address. It is a legally significant process that requires close attention to detail.

Potential challenges include:

•not all jurisdictions allow redomiciliation, so it’s essential to verify that your current jurisdiction permits it
•an extensive set of documents must be collected and legalized
•there may be tax consequences at the time of exiting the current jurisdiction
•it’s important to understand the rules and requirements of the new jurisdiction—in the UAE, for example, selecting the right free zone and complying with its regulations is crucial

Incorrect documentation or poor timing may result in lost time, financial penalties, or even forfeiting the right to redomicile.

Why RSBM?

Redomiciliation is not a process you want to start without expert guidance. It’s crucial to do everything legally, transparently, and strategically. The RSBM team works with international clients, understands the complexities of cross-border structures, and manages the redomiciliation process from initial inquiry to full legal integration in the UAE.

Here’s what we do:

•consult and assess whether redomiciliation is right for your specific situation
•select the most appropriate UAE jurisdiction based on your industry and goals
•prepare and verify the full documentation package
•liaise with registrars, regulators, and financial institutions
•provide post-relocation support—from opening bank accounts to ensuring local compliance

Redomiciliation is more than a change of jurisdiction—it’s a strategic move to preserve your business and unlock new opportunities. If your business is mature, active, and you want to retain what you’ve built—redomiciling to the UAE could be the optimal solution. Just make sure you go through the process with experts who know exactly how to do it right.

Contact the RSBM team — we’ll evaluate your options and manage the redomiciliation process from start to finish. No losses. No risks. No bureaucracy.