The benefits of re-domiciliation

If you’ve got a Company, but you think it would be better domiciled elsewhere; re-domiciliation may be the answer for you. In this article, Pamela Smith-Hamer, Director, Charterhouse Isle of Man offers insight into why a company should think about re-domiciliation and the benefits of utilising the Isle of Man as the jurisdiction of choice.

The concept of re-domiciliation of a Company is to migrate an existing entity from one jurisdiction to another. The Company retains the same assets, for example the commercial contracts it enjoys, and liabilities, with no change to the running and maintaining of the Company, other than being incorporated in the new country of choice. It will adhere to, and take advantage of, any different rules, regulation or taxation, in the new jurisdiction. It is perhaps somewhat surprising how portable a Company can be.

The benefits of re-domiciliation are plenty; if the current jurisdiction under which the Company is registered ceases to offer sufficient benefits or the reason that location was initially chosen is no longer there, it can be moved without losing history, incorporation date or client base such as contracts. The alternative would be to liquidate the Company to move individual assets or structures for re-incorporation elsewhere which would be costly in terms of both time and expense. This method could cause the Company to lose contracts or contracts that may be on favourable terms having to be renegotiated detrimentally. Thankfully, re-domiciliation legislation is available in most countries with the standout exception being the UK.

A Corporate Service Provider (“CSP”) can make this a seamless experience. With a CSP, an experienced administrator is on hand to take the stress away from clients. An application with the relevant documentation is made to the desired jurisdiction and, once consent is granted, there is a period of time (12 weeks for a Company wanting to migrate to the Isle of Man, for example) for the Company to get any remaining certification and documentation required for registration.

Documents required include, but are not limited to, proof that the outgoing jurisdiction allows the migration of the Company to the new jurisdiction, Memorandum and Articles of Association, and evidence that nothing has changed over the 12 weeks between application for consent and application for registration.

In the case of moving the Company to the Isle of Man, if it is to be incorporated under the Companies Act 1931 (as amended) rather than the Companies Act 2006 (as amended) then it will also need to publish a notice in the newspaper 3 months before the application is made, a Manx advocate will have to certify that the procedure  has been followed and audited financial statements will have to be provided if required.

The Isle of Man is a great choice for re-domiciliation for a number of reasons – English speaking, its physical geography between England and Ireland with good transport links and Western European Time Zone. The volume and quality of CSPs which provide a re-domiciliation service is large and there is bound to be the right Corporate Service Provider for you. The local staff that maintain these services and act as administrators for the companies are often not only vastly experienced but also professionally qualified, friendly and available to assist from beginning to the end of the process.

The Isle of Man is an excellent candidate for re-domiciliation of individuals and families too; it has a number of booming and extremely highly regarded, and well regulated industries, from the ever growing e-Gaming sector, through to the world-renowned Finance sector. Both put the Isle of Man on the map as a leading centre for business, meaning the location provides clients with a long standing and mature international centre in a regulated environment and reassurance for those dealing with an Isle of Man entity. At the time of writing employment remains high,  of more than 98%.

Not only that, but the infrastructure is some of the best in the world. With the roll out of world leading fibre broadband connectivity backed by a Government investment of £10 million, doing business on the Island has never been easier in this current global state of play that requires round the clock, rapid and reliable internet connectivity. With the successful e-gaming industry, it helped push powerful world leading technology groups and hosting professionals to establish themselves here.

Moreover, there is space open to investment and development, meaning the state of the art office required for your business could easily be achieved, headquartered here on island. At the other end of the spectrum, there is shared office space and serviced offices for start-ups. The housing market is not limited like other comparator jurisdictions and often providing better value than other jurisdictions, relocating to the island is more than in reach for most.

With an excellent lifestyle (think 20 minute commutes, excellent education standards and an abundance of outdoor space), affordable quality of life and a forward thinking, accessible and politically stable Government, the Isle of Man is a place where a business and its employees grow, prosper and flourish.

If re-domiciliation of your Company or relocation of yourself, is something you require help with, many very experienced and knowledgeable CSPs would be more than happy to assist.

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