Topic Summary
What Redomiciliation Actually Does
Redomiciliation moves your company's home country while keeping the same legal entity alive.
Both Registries Must Agree
Both sides must agree. Your old registry must allow the exit. The new one must accept the entry.
The UK Has No Exit Route Today
The UK has no exit route today, so British firms cannot move this way.
The 2025 Transfer Route Is Internal
Federal Decree-Law No. 20 of 2025 added a transfer route inside the UAE. It is not a route in from abroad.
A New Company Is Often Faster
A new UAE company plus a planned handover of assets is often faster and cheaper.
A License Does Not Switch Off Tax
A free zone license does not switch off tax on its own.
Dubai keeps drawing in firms that already exist somewhere else. Free zones now take close to 41 per cent of new business registrations in the emirate. That is 2025 data from the Department of Economy and Tourism.1 The UAE also holds 137 double tax treaties.2 That matters a lot to any group moving across borders. Nearly 250,000 new firms joined the national register during 2025 alone.3 So one question comes up again and again. Can you move the firm you already own? Or must you start from scratch? Sometimes you can move it. Often the honest answer is messier than that. This guide shows how a company move into a Dubai free zone really works. It covers the legal test, the tax, the papers and the traps.
What Redomiciliation Changes About Your Company, Contracts and Bank Accounts
Redomiciliation is also called continuation. The company shifts its home country. The legal entity stays alive through the trip. That is the whole point of it.
Closing down and starting again does something else. It kills one entity and builds a new one. The new firm has a fresh start date and no track record.
A true move usually carries these things forward:
The first date of setup and the trading history
Live deals with clients, suppliers and lenders
Trademarks and patents held in the company name
The share register and the current split of shares
Debts, guarantees and any open lawsuits
Some things do not travel on their own. Your bank will treat this as a big change. Expect fresh checks, new papers and maybe a new account. Staff contracts and visas follow UAE rules, so you set those up here anyway. Permits from a regulator never travel. A financial services permit granted abroad means nothing in a UAE free zone.
Which Home Jurisdictions Let a Company Migrate Out?
The move works only if two things are true at once. Your home country must let firms leave. The new registry must let firms in. Fail either test and the route shuts.
Many places do allow an exit. The list includes the British Virgin Islands, the Cayman Islands, Bermuda and Cyprus. Malta, Jersey, Guernsey and the Isle of Man allow it too. So do the Seychelles, the Marshall Islands, Luxembourg and Switzerland. Canada, Australia and New Zealand round out the common set.4
Others simply do not. The United Kingdom has no exit route in force today. A new regime has been drafted and put out for comment. It is not law yet.5 Many civil law states and some US states also refuse. In those cases a branch or a new company is the only real option.
Your own founding papers matter as well. The articles must allow the move, or at least not block it. Check that early. Changing them adds weeks.
How UAE Law Now Handles Company Transfers Between Registries
The UAE changed its rules on this in late 2025. Federal Decree-Law No. 20 of 2025 was issued on 1 October 2025. It amended the Commercial Companies Law.6 It added a new Article 15 bis.
Article 15 bis lets a firm shift its listing from one UAE authority to another. That covers moves between emirates. It also covers moves between the mainland and a free zone, in either direction. The legal identity survives. No wind-up is needed.
The route comes with strings. Owners must vote it through. Both authorities must sign off. The register must be free of holds. The decision must be made public. Joint stock firms need extra sign-off on top.
Here is the part that trips people up. Article 15 bis works inside the UAE only. It does not open one federal door for a firm arriving from abroad. A move in from another country runs on the receiving free zone's own rules. Not every zone has published such rules. Approval is judged case by case. Older guides still credit the 2021 law with creating this route. That is now out of date. Dubai South Business Hub Free Zone assesses each inbound file against its own rules. Eligibility is settled here before you file anything abroad.
Continuation, New Company or Branch: Which Entry Route Fits?
Three routes exist. Continuation shifts the entity itself. A new setup creates a fresh UAE firm, and you then move assets and deals into it. A branch registers your foreign firm here without creating a second entity.
In the grid below, DSBH Free Zone means Dubai South Business Hub Free Zone. Use it as a quick reference on the points that usually settle the choice.
Reference point | Statutory continuation | New DSBH Free Zone company | UAE branch of foreign parent |
|---|---|---|---|
Legal identity | Same entity continues, subject to both registries approving the transfer | New legal entity is created | Extension of the foreign parent, not a separate legal entity |
Start date | Original legal history may be preserved if the continuation is approved | Resets to the new license issue date | Parent keeps its original date; the branch receives a UAE registration date |
Live contracts | May continue, subject to contract terms, notices and counterparty consent | Must generally be assigned, novated or signed again | Remain with the parent, although UAE activity details may need updating |
Bank account | Subject to fresh bank review; continuity is not guaranteed | New account generally required | New UAE account generally required |
Old registry | Must permit and formally record the exit | Existing company may remain active or be closed separately | Foreign parent remains active |
Time to complete | Depends on both authorities; no fixed DSBH timeline should be stated | Within one business day for eligible applications | Subject to DSBH approval; confirm the timeline directly |
Paid-up capital | Set by the receiving authority | None required | None required |
Corporate tax | UAE tax treatment applies after entry; 0% is conditional on meeting all QFZP requirements | UAE Resident Person; 0% applies only to qualifying income where all QFZP conditions are met | Generally creates a UAE taxable presence; treatment depends on the parent and branch activities |
Best suited to | Established companies whose legal history is worth preserving | Owner-run trading, services and e-commerce businesses seeking the clearest DSBH route | Foreign companies entering the UAE without creating a separate subsidiary |
How Corporate Tax Applies Once the Company Lands in Dubai
The UAE corporate tax rate is 9 per cent above AED 375,000 of taxable income.7 Below that line the rate is 0 per cent. A free zone license does not switch the tax off.
A free zone firm reaches 0 per cent on qualifying income only as a Qualifying Free Zone Person. The status is tested every year. All of these must hold true:
The firm is a free zone person in a listed zone
It keeps adequate substance in the UAE
It earns qualifying income
It has not opted into the standard 9 per cent regime
It follows transfer pricing rules and keeps the records
Its non-qualifying revenue stays under the de minimis cap
It prepares audited accounts
The list of qualifying and excluded work now sits in Ministerial Decision No. 229 of 2025. That one replaced the 2023 list. It applies back to 1 June 2023.8 Any advice written before it needs a second look.
The cap is the lower of 5 per cent of revenue or AED 5 million. A worked case makes this clear. Take a trader with revenue of AED 20 million. Five per cent of that is AED 1 million, so the cap is AED 1 million. Mainland sales of AED 800,000 sit under the cap. The status holds. That slice still pays 9 per cent. Push mainland sales to AED 1.2 million and the cap breaks. The firm then pays 9 per cent on all income above AED 375,000.
Substance needs real care. An address on its own does not meet the test. Regulators look for staff, assets, real running costs and choices made here.
Two more points get missed a lot. First, tax residence can shift before the papers do. A foreign firm run and controlled from the UAE may be a UAE tax resident already.9 The move then just makes official what is already true. Second, big groups face the top-up tax. Groups with revenue of EUR 750 million or more pay a floor rate of 15 per cent here. That floor applies for years starting on or after 1 January 2025.10 A free zone rate of 0 per cent will not shield them.
One piece of good news. Economic substance filings ended for years closing after 31 December 2022.11 The tax substance test still stands, so the same care applies.
Last, look at the exit side. A move is often not a taxable event at home. That is not always true. Some countries charge an exit tax on gains you hold on paper. Take local advice before you file.
What Paperwork Does a Continuation Application Actually Require?
The order here really does matter, so treat it as part of the method.
Pass a board and owner vote that approves the move.
Get written proof that the zone accepts firms moving in.
Obtain a good standing letter, usually dated within three months.
Gather certified founding papers and the setup certificate.
Prepare a solvency statement showing no wind-up or claims.
Build the owner register and ID packs for owners and directors.
Notarise and apostille every paper made outside the UAE.
File with the zone and get its first approval.
Only then ask the old registry to log your exit.
Collect the new certificate. Then update banks, tax records and clients.
Step nine wrecks the most timelines. Never close at home before the UAE side has said yes. A firm that has left one register without joining another has no home country. Banks freeze accounts when that happens.
Timelines and Budget: What to Plan Before You File
The zone is rarely the slow part. Your old registry sets the pace. The review here runs three to five working days. Four to eight weeks is a fair estimate end to end. Anything with a regulated parent takes longer.
Budget for more than the license. Plan for exit fees at home. Add agent fees, apostille costs and translation. Then add UAE fees and any legal work on contracts.
Now weigh that against the other option. At Dubai South Business Hub Free Zone a license starts from AED 12,500. A flexi-desk is included. There is no paid up capital rule. The license can be issued in one business day for eligible activities. Up to five activities fit on one license, chosen from a list of more than 3,500. Setup and renewals run through a digital portal.
So the real choice is not moving against doing nothing. It is the cost of keeping history against the cost of building it again. If your deals are short, your bank is new and your record is thin, building again usually wins.
Which Mistakes Most Often Derail a Company Migration?
Assuming your home country allows an exit, without reading the statute
Filing to leave at home before the UAE registry has said yes
Telling the bank after the fact, which triggers a full account review
Picking activities at the new zone that do not match the old license
Treating a desk and an address as enough substance for the 0 per cent rate
Missing an exit tax on gains you still hold on paper
Forgetting that your VAT details and zone status may both change
Expecting a general free zone to host work that needs a financial regulator
Is Dubai South Business Hub Free Zone a Good Landing Point?
It depends on what kind of firm is moving. Here is a straight answer both ways.
Dubai South Business Hub Free Zone suits owner-run firms in trading, e-commerce, consulting, logistics and general services. Licenses start from AED 12,500 and include access to a Flexi-desk. Ownership is 100% foreign, no paid-up capital is required, and the entire setup process runs online. Founders can receive a license in one business day for eligible activities. Up to five activities can be included on one license from more than 3,500 activities. Support is also available for banking, visas and Emirates ID. The zone provides access to Al Maktoum International Airport, Etihad Rail and Jebel Ali Port, which is useful for businesses moving goods.
Inbound continuation is available on a case-by-case basis, giving established companies a route to move into Dubai South Business Hub Free Zone while preserving their existing legal identity where the registry rules allow it. The process begins with an eligibility review by DSBH and the outgoing registry, followed by the required clearance and corporate documents. Timelines and the treatment of the original incorporation date depend on the company's home jurisdiction, but the route can be valuable for businesses that want to retain their trading history rather than start again with a new entity.
Now the limits, stated plainly. Dubai South Business Hub Free Zone is a general business free zone, not a specialist financial centre. Regulated financial services, fund management and similar activities may require separate regulatory approval or a different jurisdiction. Founders who need a foundation, regulated fund vehicle, securities regulator or specialist common-law court framework should confirm whether another structure is more suitable.
One more honest point on route choice: the outgoing registry will often determine the pace of a continuation, and that sits outside DSBH's control. For many owners, the faster route may be to establish a new DSBH company and complete a planned transfer of assets, contracts and operations. Licensing in one business day for eligible activities, and a low starting cost, make that option practical. The real question is whether preserving the existing company's legal history is worth the additional time and complexity.
Sources and Legal Framework
Dubai Department of Economy and Tourism, 2025 registration data, as reported in Gulf News GN Focus, "How free zones advance the UAE's economic ascent", December 2025.
UAE Ministry of Finance, international tax agreements: 137 double taxation agreements.
Ministry of Economy and Tourism figures on 2025 company registrations, reported by Gulf News, January 2026.
Conyers, "Companies Re-domiciling to (and from) Bermuda, Cayman and BVI", 2024; Cyprus Companies Law continuation provisions.
Lewis Silkin, "Relocating to the UK: the proposed corporate redomiciliation regime", April 2026.
Federal Decree-Law No. 20 of 2025 amending Federal Decree-Law No. 32 of 2021 on Commercial Companies, issued 1 October 2025, published 14 October 2025; new Article 15 bis.
Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, Articles 3 and 18.
Ministerial Decision No. 229 of 2025 on qualifying and excluded activities, replacing Ministerial Decision No. 265 of 2023, applicable from 1 June 2023.
Cabinet Decision No. 85 of 2022 on the determination of tax residency, and the Federal Tax Authority guide on tax residence for juridical persons.
Cabinet Decision No. 142 of 2024 on the imposition of top-up tax on multinational enterprises; UAE Ministry of Finance, domestic minimum top-up tax.
Cabinet Decision No. 98 of 2024 amending Cabinet Resolution No. 57 of 2020 on economic substance requirements.
Dubai South Business Hub Free Zone, license packages, activities and setup process, dubaisouthbh.com.
Working out which route fits? Use the cost calculator to price a free zone setup, run a free company name check, or browse the full list of business activities.
Frequently Asked Questions
