Business Redomiciliation

Front

What is business redomiciliation?

Back

It is a strategy where a company moves from one country to another without shutting down or restarting.

Answer explanation

The company keeps its name, contracts, and assets but changes the rules it follows based on the new location. Therefore, it is a state where a company moves from one country, where it’s officially registered, to another without shutting down or restarting

Front

What are the main pros of business redomiciliation?

Back

Tax benefits, more comfortable set of laws, and access to new markets

Answer explanation

Companies can move to places with lower taxes or better tax deals, saving money, also some countries have simpler laws for running a business, and the last but not the least moving can help a company enter new markets more easily

Front

What are the overall cons of business redomiciliation?

Back

Higher costs, complexity, and reputation risks

Answer explanation

The process can cost a lot in legal fees, taxes, and paperwork, dealing with laws in two countries can be tricky and time-consuming and sometimes moving to a tax haven might make the company look bad to customers or investors.

Front

Which of the following are examples of international companies that have used business redomiciliation? Apple, Netflix, Amazon, Fiat, Actelion, Seadrill, LyondellBasell, Aramco, Pfizer, Nestle, Procter & Gamble, Microsoft, Tesla, Coca-Cola, Samsung

Back

Fiat, Actelion, Seadrill

Answer explanation

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Front

Which countries are considered the most favorable for business redomiciliation? Options: Argentina, Nicaragua, Italy; Singapore, Samoa, Bosnia and Herzegovina; France, Croatia, Austria; Germany, Japan, Australia; Luxembourg, Cyprus, Cayman Islands

Back

Luxembourg, Cyprus, Cayman Islands

Front

Which company’s redomiciliation was forced by Russian court intervention?

Back

X5 Retail Group

Answer explanation

At the end of April, the Arbitration Court of the Moscow Region granted the application of the Ministry of Industry and Trade for the suspension of the corporate rights of the Dutch company X5 Retail in relation to its Russian subsidiary, which operates the Pyaterochka, Perekrestok and Chizhik store chains. The court's decision transfers X5's shares to the subsidiary.

Front

What is the main advantage of Russian companies redomiciling to Russia?

Back

Faster dividend payments to Moscow Exchange shareholders

Answer explanation

Registration of a Russian company in countries unfriendly to the Russian Federation creates additional difficulties and risks, therefore redomicilation is especially relevant. For example, a number of companies are actually unable to pay dividends to shareholders on the Moscow Stock Exchange — they do not reach them due to the violation of the bridge between NSD and Euroclear.

Front

Which company moved from Cyprus to Kazakhstan in 2024?

Back

Fix Price

Answer explanation

In November 2023, the shareholders at an extraordinary meeting decided to re-register the company from Cyprus to Kazakhstan. The process was completed in June 2024.

Front

What is the main reason companies avoid Cyprus now? Options: High tourism taxes, Bad weather, No internet access, Too many competitors.

Back

Sanctions disrupt dividend payments to Russia

Answer explanation

Very logical way of thinking! Great!!

Front

Which company completed its move to Kaliningrad in 2023?

Back

VK

Answer explanation

VK has completed the change of jurisdiction from the British Virgin Islands to the Special Administrative Region (SAR) on Oktyabrsky Island in the Kaliningrad Region.