Leading local corporate law expert Michael Lane revealed the 10 reasons why a company should migrate to the UAE at the eighth international B2B conference, InvestPro UAE Dubai 2021.
The organizers of the annual event, which aims to promote up-to-date professional information with speakers and delegates from around the world sharing business solutions based on their knowledge and experiences, welcomed 150 delegates and 12 speakers to The Oberoi Dubai earlier in September .
Michael Lane, Managing Director, Swiss International Legal Consultants Ltd, UAE, part of Swiss Group, introduced the public to the “new normal”, a set of regulations and international standards to keep in mind when setting up and running business in and from low, or no, nominal tax jurisdictions.
He went on to describe the current legal framework and explain the concept and process of corporate migration while highlighting the numerous advantages of the UAE over many other jurisdictions.
The senior attorney told delegates that corporate migration could be considered for several reasons: “It is a useful scenario to take advantage of a more favorable legal and business-friendly environment; transferring an offshore company to onshore; while also meeting the new international standard of ‘Economic Substance’ requirements and getting closer proximity to customers and/or new markets”.
The chief executive explained to delegates that corporate migration — or relocation — is the simple process by which a corporation transfers its legal place of residence from one jurisdiction to another while preserving its corporate history and track record.
Subject to compliance with the corresponding legal requirements in both jurisdictions, the company will be deregistered in the jurisdiction of its original incorporation and continue its legal existence as a company registered in the destination jurisdiction.
He said the tax-friendly UAE has an extensive network of tax treaties with more than 80 countries, with more treaties currently being ratified. He emphasized that there are no exchange restrictions and the possibility of unlimited repatriation of income/profits and capital.
He cited the world-class infrastructure, connectivity and globally recognized financial hubs of DIFC and ADGM, and highlighted the zero-tax regime, political stability and liberal business environment as key features when considering corporate migration to the UAE.
“To anyone who is not convinced of the obvious benefits of migrating your business to the UAE, I would also like to add that we enjoy a very high quality of life, a safe family environment and one of the lowest crime rates in the world,” he said.
In addition to the points above, Lane went on to describe the key benefits of a business relocation, including:
- The (legal) continuation allows a company to preserve all of its history and track record – while reaping the benefits of the new destination jurisdiction and legal and business framework.
- The company can maintain existing relationships with customers and suppliers (for example, existing contracts) and banking relationships.
- Benefit from a more favorable tax regime (including network of double tax treaties) while meeting ESR requirements.
- A company can easily migrate from an offshore to an onshore setup.
Finally, the corporate migration expert reminded international delegates that his company is always on hand to clarify the latest legal requirements.
InvestPro UAE Dubai 2021 devotes its content to hot topics such as wealth protection and wealth management. Each year, it delivers practical solutions to professionals in the fields of investment, real estate, citizenship and international tax structuring. Other speakers include heads of leading companies and banks from CIS countries, Europe, Middle East and Asia.