As part of the 2021 budget, the chancellor has launched a consultation with UK companies on the government’s corporate re-domiciliation proposals. At MSP, we are conscious of our corporate responsibility and have therefore proactively engaged with this consultation process. In this opinion piece, we will set out our position on the proposed corporate re-domiciliation legislation.   

Re-domiciliation involves enabling companies that are currently incorporated abroad, to move their place of incorporation to the UK, whilst maintaining their legal identity. The intention of these proposals is to further make Britain an attractive location for investing and to bring more high skilled jobs into the UK.  

As mentioned, the proposed benefit of re-domiciliation is to make the UK a more attractive place for business. However, this proposed legislation also has benefits for companies themselves, some of which may be MSP clients. Namely, re-domiciliation laws would allow for a smooth continuation of a company’s operations whilst the transition of location of incorporation takes places. This is a positive alternative to significant structural disruption that alternative options to re-domiciliation pose to businesses. In that sense, these proposals are a welcome sight. This is an example of the practical benefits that these laws will have for companies, in addition to the suggested economic benefit of attracting foreign business to the UK.  

Within our response to this consultation, the main hesitation that was put forward concerned regulatory standards. We sought assurances that the robust compliance structure that we have in the UK is not undermined by these changes. Specifically, we want to ensure that the companies that do re-domicile to the UK would have to maintain the same standards as other UK companies who already are incorporated in Britain. This is to protect British business and ensure fair competition within the UK economy. We included this point in our response to the government, and on this condition, we are in favour of this proposals on the basis of the economic growth that it can bring.  

If you wish to discuss how having MSP as your company secretary can benefit your business, contact the MSP Chief Executive Philippa Keith at PhilippaK@mspsecretaries.co.uk