The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)
I am pleased to announce that the Government are 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 No. 1 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 that the regime is attractive, the regime will provide business with clarity and predictability, with proportionate and appropriate safeguards. Insolvent companies, or companies that are subject to specified sanctions—or whose directors, persons with significant control or members 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 and 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.
[HCWS1447]