Companies that wish to transfer their domicile into the UAE can take advantage of the conducive legal and regulatory regimes of Abu Dhabi Global Market (ADGM). ADGM laws allow corporate migration into the free zone which is termed as ’continuance’ in it’s implementing regulations. By re-domiciling into ADGM, the companies will be able to retain their legal structure, assets and records.
Companies that find it tougher to operate under unfavourable conditions such as higher taxation, stringent regulations etc. can migrate to ADGM and enjoy the benefits of UAE’s open economy and no-tax regime. The investors can consult the business setup consultants in the UAE to initiate the transfer of domicile quickly and easily. Read ahead for the process and requirements of transferring domicile into ADGM.
Continuance into the ADGM
As per ADGM Regulations 2020, continuance is the legal process by which a corporate body incorporated in one jurisdiction can migrate to another jurisdiction. By migrating into ADGM, the entity will cease to exist in its home jurisdiction and become governed by the laws of the ADGM Authority.
Eligibility for continuance into ADGM
Any entity incorporated in another jurisdiction can re-domicile into ADGM by applying to the Registrar for a certificate of continuance. The certificate of continuance states that the corporate body will continue as a company in the ADGM and is registered under the Regulations. An entity becomes eligible for transferring its domicile into ADGM only if the laws of its original jurisdiction allows it to migrate to a new jurisdiction. Business setup consultants in Abu Dhabi can help investors to determine if they are eligible for corporate migration.
Restrictions on Migrating into ADGM
A corporate entity applying for continuance into the ADGM should check the restrictions that prevent it from transferring its domicile into the financial free zone. The following are some of the restrictions that prevent certain corporates entities and companies from applying for continuance in ADGM:
a) A company being wound up or currently undergoing liquidation
b) An insolvent entity
c) A corporate body that has had a receiver, manager or administrator appointed in respect of any property of the company or corporate entity
d) The entity has entered into a compromise or arrangement with a creditor (not being a compromise or arrangement approved by the Registrar) and such compromise or arrangement is in force
e) The entity has an application pending before a Court for the winding up or liquidation of that body corporate or company, or to have it declared insolvent, or for the appointment of a receiver, manager or administrator or the approval of such a compromise or arrangement.
How to Apply for Transfer of Domicile into ADGM?
A corporate body wishing to transfer its domicile into the ADGM must make an application to the Registrar. The application must include the following information:
a) A certified copy of the articles
b) Articles of continuance
c) A statement of solvency
d) The name under which the investors are planning to continue the corporate entity
e) Evidence that the corporate body is authorised under the laws of its original jurisdiction to make an application for continuance
f) When required under the corporate entity’s constitution or the laws of its jurisdiction, that authorisation has been given for the application for continuance
g) If a certificate of continuance is issued by the Registrar, that the corporate body will cease to be incorporated in the other jurisdiction
Hire Business Setup Consultants Agents in Abu Dhabi for Migration
International companies prefer the UAE as their favourite jurisdiction to carry out the transfer of domicile as the country has a low taxation and minimal reporting regime. The ADGM migration provides the companies with the benefits of easy bank account opening, and the ability to maintain the current legal status. However, the companies need to carry out the process through business setup consultants in Abu Dhabi such as Jitendra Business Consultants (JBC) for hassle-free migration.
JBC has a team of efficient business setup consultants who with their wealth of experience simplifies the re-domicile process. JBC has a team of highly qualified company formation specialists who can assist the companies in planning the entire process of corporate migration. JBC will take care of critical requirements including visas, bank account opening, Value Added Tax (VAT), accounting, audit etc. The companies need not worry about the latest regulations such as Economic Substance Regulation (ESR), Ultimate Beneficial Ownership (UBO) etc if they fall within its scope. By hiring JBC’s company incorporation services in the UAE, international companies can seamlessly migrate into ADGM and enjoy the business benefits.