Corporate restructuring refers to reorganizing legal ownership and operational structures of a company or group of companies for the purpose of maximizing group profits and shareholder worth. For instance, based on tax planning and avoidance of double taxation treaties between UAE and other countries, the parent subsidiary relationship among the group companies can be restructured in such a way as to reduce the total tax paid by group in all jurisdictions. There can be various reasons for corporate restructuring and mainly includes reducing cost and optimization of resources, tax planning, better financial results, prospective merger and use of technology.
As in UAE, there is no corporate tax on profits of businesses, most companies in UAE are owned by foreign shareholders either directly by individual or companies. Our experts can review current group structure and after analyzing multiple possible scenarios we can advise better option for restructuring of group.