It may be remembered that in 2021 some proposals were floated for the UK to introduces some redomiciliation rules so that foreign companies can change their place of incorporation to the UK, and with it the governing law of the company.
This would be very welcome, and would correspond to the rules in many other countries. However, anybody hoping to take advantage of this change better not hold their breath because it is certainly not going to happen any time soon.
The government is now considering a two-way corporate redomiciliation regime, following a report by an independent expert panel. The idea would be to allow all corporate forms incorporated in overseas jurisdictions to transfer to the UK at the same time as retaining the same continuous legal personality.
This is substantially more complicated than the original proposal and will require a whole load of regulatory and tax changes. There will be further consultation in due course on how the proposed new regime will be designed.
The purpose of this change is ‘to strengthen the UK’s position as a global business hub’. Really? I think that it will need a bit more than this to have any positive effect at all. After considering the issue for three years, to say that the government are now going to consult on it ‘in due course’ is unlikely to impress anybody involved in a real global business.
It may be remembered that in 2021 some proposals were floated for the UK to introduces some redomiciliation rules so that foreign companies can change their place of incorporation to the UK, and with it the governing law of the company.
This would be very welcome, and would correspond to the rules in many other countries. However, anybody hoping to take advantage of this change better not hold their breath because it is certainly not going to happen any time soon.
The government is now considering a two-way corporate redomiciliation regime, following a report by an independent expert panel. The idea would be to allow all corporate forms incorporated in overseas jurisdictions to transfer to the UK at the same time as retaining the same continuous legal personality.
This is substantially more complicated than the original proposal and will require a whole load of regulatory and tax changes. There will be further consultation in due course on how the proposed new regime will be designed.
The purpose of this change is ‘to strengthen the UK’s position as a global business hub’. Really? I think that it will need a bit more than this to have any positive effect at all. After considering the issue for three years, to say that the government are now going to consult on it ‘in due course’ is unlikely to impress anybody involved in a real global business.
