Minister for Small Business and Economic Transformation (): I am pleased to announce
that the Government is today launching a public consultation on
detailed design proposals of an inward UK corporate
re-domiciliation regime as part of our Industrial Strategy
commitment to modernise company law.
The UK is a great place to locate and grow a business with
companies wanting to benefit from the business-friendly
environment, world-class regulatory and legal framework,
competitive corporate tax regime and extensive network of trade
agreements. Under current processes moving a company's place of
incorporation to the UK involves the creation of a new legal
identity. This is costly, complex and can introduce commercial
risks due to the need to transfer assets and contracts. An inward
re-domiciliation regime, on the other hand, would enable foreign
companies to transfer their place of incorporation to the UK
while maintaining their legal identity, significantly reducing
the disadvantages associated with the current routes. For some
companies, the introduction of a regime would provide a practical
and viable route to establishing a UK presence for the first
time.
Economic growth is the number one mission of this Government and
by making it easier for companies to move their place of
incorporation to the UK we will maximise opportunities for
increased investment and skilled jobs. Companies moving to the UK
will increase demand for professional and business services. In
addition, the regime will support our plan to strengthen the UK's
position as the global location of choice for financial services
firms to invest, innovate and grow. Both these sectors are among
those identified as having the greatest growth potential in our
Modern Industrial Strategy.
To ensure the regime is attractive, the regime will provide
business with clarity and predictability with proportionate and
appropriate safeguards. Insolvent companies, or companies which
are subject to specified sanctions (or whose directors, persons
with significant control or member(s) are subject to sanctions)
would not be eligible, for example. Once a company has
re-domiciled to the UK, it will be treated in the same way as a
company originally incorporated in the UK where all UK legal
requirements would apply. Companies House will be responsible for
operating the regime, who will recover the costs associated with
applications through fees.
The consultation will run for 12 weeks and may be of particular
interest to multinational businesses, foreign incorporated
companies, business representative groups, company law experts,
and professional services firms.
I will place copies of the consultation in the Libraries of both
Houses and it will be published on GOV.UK.
