Business consolidation based on a legal entity in the UAE

Consider a group that is consolidated in the UAE under that country’s favorable legislation. Asset integration and share conversion are free from taxation. Internal monetary settlements within controlled structures such as subsidiaries are greatly simplified. All these features create unique opportunities to build the right architecture for international business to drive out very worthwhile benefits.

The main advantages of consolidating business and assets in the UAE jurisdiction

Simplified management structure

Reducing the costs within a group of companies of the management team of multiple divisions.

Stronger financial indicators

Adopting consolidated reporting that shows improved financial performance of the business.

Growth in asset values

Additional capitalization and valuation of assets that have been combined within a consolidated group.

Preparing a business to be sold

Elimination of “bad” debts and assets, separation of more liquid divisions for further successful sale.

Access to capital markets

Opportunity to attract funding and lending due to improved business financial performance.

Justification for movement of funds

Legal validation of the grounds used for monetary payments between structures of a consolidated group.

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Steps to building business consolidation schemes with SORP’s guidance:

Preliminary analysis of the goals and objectives of consolidation

We will analyze the activities of the group and the objectives of consolidation, assess the synergistic effect of the proposed deal and evaluate potential legal and tax risks.

Selecting the optimal business structuring schemes

Our team will develop the most suitable mechanism for executing a consolidation deal using proven tools and will help create a restructuring architecture.

Choosing the organizational and legal form, and company registration

We will help you determine the correct type of legal entity with the capabilities required to fulfil the goals and objectives of the consolidation, as well as actioning its incorporation.

Administration of the business consolidation process

The competencies we have accumulated over many years allow us to solve a wide range of issues, including support in opening bank accounts, legalization of documents and others.

Legal support for the consolidation processes

SORP Group corporate lawyers will develop the necessary contracts within the framework of the new internal group relationship, transfer of assets, movement of goods and cash flows.

Preparing consolidated audit reports

We will put together the consolidated balance sheet and support the audit process and procedures required to certify it.

Legal forms of business and asset consolidation in the UAE

Forming a holding company

Facilitates optimal management schemes for activities of controlled structures

Forming a consortium

Formalized structure of a temporary association of range of independent companies in the UAE

Cross-ownership

Mutual ownership of shares in two or more companies, where one acts as a shareholder in the other

Reporting services

Combining financial indicators to attract investments and participate in tenders

Mergers and acquisitions

Delivers asset value growth as well as improving management efficiency

Business re-domiciliation

Change of jurisdiction to the UAE, a country which provides favorable tax regime

Consolidating business and assets at parent company level and creating international structures and schemes for business optimization are considered as legitimate actions under the United Arab Emirates legislation. This guarantees the confidentiality of the beneficiary’s data, the absence of major taxes and currency controls, and the protection of the rights of investors and their investments. Obtaining UAE tax resident status will allow shareholders and investors to protect themselves from automatic exchange of tax information.