What Is Redomiciliation?
Redomiciliation refers to a corporate-law procedure under which a company transfers a registered office to another jurisdiction while keeping legal personality, where national law permits.
Also known as: Corporate Redomiciliation, Cross-Border Conversion.
How Redomiciliation works
Redomiciliation is the process by which a company moves its registered office, and usually its governing company law, from one country to another without being dissolved and re-incorporated, so that contracts, assets and history stay with the same legal person, provided both the departure and destination jurisdictions allow the move. Within the European Union, Directive (EU) 2019/2121 regulates the operation as a cross-border conversion, in which a company converts its legal form and transfers at least its registered office while retaining legal personality. Outside such frameworks, availability depends on whether each country's statute permits continuation in or out. Tax consequences follow separately: corporate residence, exit taxation of unrealised gains and permanent establishment exposure are assessed under domestic law and treaties, often by reference to the place of effective management.
Redomiciliation vs Corporate Migration
Unlike Corporate Migration, which describes any change of a company's tax residence, including a move of effective management alone, Redomiciliation changes the registered office and governing corporate law.
Example
Illustrative example: A founder relocates from Country A to Country B and wants the existing company to follow. If both countries permit continuation, the company redomiciles to Country B and keeps its contracts; Country A may still examine whether an exit charge applies to unrealised gains, and Country B assesses residence under its own rules.
Common misconception
Myth: Moving a company's registered office automatically ends tax residence in the old country.
Reality: Corporate tax residence generally depends on domestic tests such as place of effective management, so a company may remain taxable in the departure country after Redomiciliation.
Frequently asked questions
What is redomiciliation of a company?
Redomiciliation is the transfer of a company's registered office and governing corporate law to another jurisdiction without dissolution, available only where both the departure and destination countries permit the move.
Does redomiciliation change a company's tax residence?
Redomiciliation does not by itself settle tax residence; each country applies its own tests, such as place of effective management, and the departure country may levy an exit charge on unrealised gains.
Related terms
- Corporate Migration — Broader change of company tax residence
- Exit Tax — Charge which may apply on departure
- Place of Effective Management (POEM) — Test often deciding residence after the move
- Corporate Residence — Status reassessed after redomiciliation
- Permanent Establishment (PE) — Exposure left behind in the departure country
Related guides
- Incorporation options for location-independent entrepreneurs — Choosing where a nomad's company is incorporated
- Digital nomad tax setups guide — How company location fits a nomad setup
- Estonia company profit distribution tax — Example of a destination company regime
Sources
Last verified: 2026-10-09. This entry is general information, not tax or legal advice; rules vary by country and change over time.
