UK Panel Approves Re-Domiciliation: What Does it Mean for Your Business?
Exciting news for businesses! Formed by the previous UK government, a panel of experts has announced plans for a new re-domiciliation regime in the UK. The regime could be a type of relocation of companies based on transfer of incorporation to the UK while retaining their identity.
It's a big win for businesses looking to simplify their move to the UK! Crypto Accountants look at this development closely and simplify what this means for you.
What is Re-Domiciliation?
Re-domiciliation is a fancy way of saying a company can move its home country from one place to another, without losing its legal status.
For example, a company currently based overseas can become a UK company. Yes!! They can do it without shutting down or transferring assets to a new entity.
Currently, the UK doesn’t offer this, unlike the EU, Singapore, and Australia, which already have such systems. If a business wants to move to the UK today, it has to go through a complicated restructuring process.
The new re-domiciliation regime aims to cut out the hassle.
Read More: Legal Status of Crypto Assets
Recommendations by the Panel
The expert panel made some interesting recommendations in its 114-page report. Their proposals would allow companies to relocate either into the UK or from the UK to another country. This, therefore, offers more flexibility to the management of a company's operation globally.
Key points include the following:
Eligibility: Only solvent companies would be eligible for re-domiciling to the UK.
Public or Private Choice: Companies relocating into the UK would have the choice of either operating under public or private status.
Simple Application: There will be well-defined steps on how to apply, and meet both UK and home country requirements.
Equal Treatment: Once in the UK, these companies will be treated just like any company originally incorporated in the UK.
What's Next?
The UK government is pleased with the report and is soon to open consultation to finalize details of this new regime. Upon its implementation, it will make it easier and more cost-effective for companies to move to the UK without the headache of complicated admin or surprise tax issues.
A Note from Crypto Accountants!
At Crypto Accountants, we help businesses, especially in the crypto world, manage the tricky phases of tax and compliance. If this new re-domiciliation regime goes ahead, it could open doors for crypto companies to move to the UK and take advantage of its business-friendly environment.
If you are considering re-domiciling or just need advice on your tax structure, Crypto Accountants are just a single click away.
Thinking About Re-Domiciling? We Make It Simple!
If you are thinking of taking your business to the UK, having the right team should be your number one priority. Crypto Accountants can help the process move smoothly so as to keep you compliant with all tax and regulatory rules. Take a look at our tax and advisory services.
Contact us today. Leave your complex tax calculation to us, we will do the hassle for you!!