Business consolidation based on a legal entity in the UAE
Growth in asset values and investment appeal, reduced tax costs and optimized cash flows are some of the real benefits of consolidating a business and basing it 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.
Steps to building business consolidation schemes with SORP’s guidance:
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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.
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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.
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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.
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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.
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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.
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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
SORP — full range of business registration, support and management services in the UAE
Leverage business and assets consolidation
SORP Group experts will select the best legitimate solution for consolidating business and assets, as well as help you build the correct scheme of management and capital movement, and generate a positive credit history for your company.
Take your business to the next level using the possibilities provided by UAE legislation.