Company Redomiciliation: Key Risks When Changing Jurisdiction
Redomiciliation allows a company to change its jurisdiction without liquidation, while retaining its legal identity, assets, liabilities and corporate history. However, the process involves more than simply changing the company’s place of registration and may have significant tax and corporate implications.
In their publication, REVERA experts examine the key issues that should be assessed before redomiciliation:
- whether redomiciliation is permitted in both the original and new jurisdictions;
- the tax consequences in the original jurisdiction;
- economic substance requirements in the new jurisdiction;
- the potential impact on shareholders, employees and creditors;
- the implications for subsidiaries and CFC rules;
- whether the change of jurisdiction may affect the application of double tax treaties.
Particular attention is given to holding structures. Following redomiciliation, the implications should be assessed not only for the company itself, but for the group as a whole.
The publication also considers economic substance requirements in the new jurisdiction and the risks associated with insufficient substance.
The full publication by REVERA experts is available on MYFIN.
👉 Read the full article on MYFIN to explore the key risks associated with company redomiciliation.
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