Redomiciliation (continuation, transfer of domicile) is essentially one of the forms of reorganization of a legal entity, where the jurisdiction (country of incorporation) and the legal address of the company change. In other words, redomiciliation is a procedure of changing the jurisdiction of a legal entity, in which it retains its legal status, organizational and legal form, corporate structure, assets and liabilities, bank accounts, etc.
Domicile is not just the address of the individual’s permanent residence, but, in a broader sense, the combination of factors that determine the individual’s “link” to the home country (real estate, place of business, family, social and cultural ties); it is normally used for determining the tax status of a legal entity.
Generally, a legal entity’s redomiciliation consists of two stages:
It is indeed difficult to imagine that Russia would allow in its legislation the “flight” of legal entitles or that Hong Kong would gladly accept a former offshore company.
Now that offshore jurisdictions are adopting legislation that one way or another worsens the previous regime (for example, introduces Economic Substance requirements, such as in the BVI) or renounces confidentiality principles by introducing public registers of beneficial owners (expected in the BVI by 2021), or tightens currency regulation and increases tax rates (as in Belize), then REDOMICILIATION to a favorable jurisdiction may become at least a temporary solution.