What is Redomicile?
Redomicile (or redomiciliation) of an offshore company means relocating the legal registration of a company from one jurisdiction to another without changing its legal identity. This allows the company to keep its same structure, assets, liabilities, and operations — but be governed by the laws of a new country.
In simple terms: It’s like moving a company’s “home address” from one country to another, while keeping its name, shareholders, and contracts intact.
Common Reasons for Redomiciliation
- More favorable tax regime
- Better regulatory or legal environment
- Access to different markets or banking systems
- Economic or political stability
- Meeting substance or compliance requirements
Offshore Context Example
For example, a company registered in British Virgin Islands (BVI) may want to move to Labuan (Malaysia) or Dubai to benefit from better regulations or avoid new substance rules. Redomiciling allows the company to exit BVI’s register, be accepted into Labuan’s register, and continue as if it had always been based in Labuan.
Important Considerations
- Both jurisdictions must allow redomiciliation.
- Regulatory approvals and filings may be required.
- Local directors or physical presence might be necessary.
- Some countries (e.g., the U.S.) do not allow redomiciliation.
Benefits of Redomiciling an Offshore Company
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Continuity Without Starting Over
– Keeps the same legal identity, contracts, licenses, and banking relationships.
– Avoids the need to liquidate or incorporate a new company. -
Access to Better Tax Regimes
– Move to jurisdictions with low or no corporate tax, no withholding tax, and no capital gains tax.
– Helps navigate Global Minimum Tax rules (15%). -
Enhanced Credibility & Compliance
– Improves reputation with banks and partners.
– Avoids blacklists or ‘tax haven’ stigma. -
Meet Substance Requirements
– Some jurisdictions require real economic presence.
– Relocating to a jurisdiction where real activity can be demonstrated supports compliance. -
Easier Access to Banking & Financing
– Redomiciled companies may find it easier to open bank accounts and attract investors. -
Strategic Location for Business
– Align legal base with actual operations or target markets.
– Useful for regional expansion or regulatory advantages. -
Avoid Political or Regulatory Instability
– Redomicile away from unstable or overly restricted jurisdictions.
