Business restructuring is the strategic process of reorganizing a company’s financial, operational, legal, or structural frameworks to
enhance its overall performance, adapt to changing environments, or navigate periods of financial difficulty. Whether driven by
internal challenges or external economic shifts, restructuring enables businesses to remain competitive, sustainable, and profitable.
It is a common approach not only for financially distressed companies but also for profitable businesses seeking growth, efficiency,
and improved positioning in dynamic markets. Key drivers for restructuring include compliance with new regulations, market
demand shifts, consumer behavior evolution, and macroeconomic changes.
There are many signs that indicate a company may need to consider restructuring. Some of the most common scenarios include:
From start-up phase to business maturity, companies must continuously evolve. Business restructuring in UAE allows companies to
adapt to challenges and harness growth opportunities while minimizing risk.
Choosing expert business restructuring services can lead to significant long-term advantages. These include:
Implementing perks such as employee share schemes or revising job roles and responsibilities can boost morale
and retain key talent.
By spinning off underperforming departments or forming new subsidiaries, companies can isolate and minimize
financial liabilities.
Restructuring your business makes it more attractive to investors by presenting a streamlined and growth-ready
structure.
With proper restructuring, businesses can transition to a more tax-efficient corporate setup, lowering their overall
tax burden in compliance with UAE tax laws.
Restructuring reduces unnecessary administrative and compliance costs, such as VAT filing burdens or redundant
annual accounting processes
Business restructuring in the UAE is not just for companies in crisis—it’s a forward-looking strategy for any
organization that wants to remain competitive in a rapidly evolving environment. Whether your aim is to reduce
debt, expand investment capacity, or optimize tax efficiency, restructuring offers a path toward long-term
sustainability and profitability.
For expert advice and tailored business restructuring services in the UAE, contact our team today and take the first
step toward a stronger business future
No, such transactions are eliminated in the consolidated financials of the Group. However, exceptions exist—e.g., when a
group member calculates standalone taxable income for loss utilization or when exiting the Group.
Yes. TP rules apply to all transactions with Related Parties and Connected Persons, whether they are based in the UAE, a
Free Zone, or overseas.
Absolutely. Loans between related entities must be priced fairly (e.g., interest rate, terms, and duration) according to
market conditions
Yes. Qualifying Free Zone entities that are part of a large multinational enterprise (MNE) will be subject to special
corporate tax rates once BEPS Pillar Two rules are integrated into UAE law.
Yes, if the companies have 75% or more common ownership and meet other conditions. However, tax loss transfers from
exempt entities or those under the 0% Free Zone regime are not allowed.
Yes, companies in a Qualifying Group can transfer assets/liabilities at net book value, enabling tax-neutral transactions.
Only if they are managed and controlled in the UAE and are considered UAE tax residents. Generally, only UAE-resident
juridical persons are eligible.
Introduction of corporate tax (CT) in
UAE that will be effective from 1 June
2023. This article explains how Article
44 governs the computation of CT
liability and its settlement process
Explore how the newly introduced
Corporate Tax might indirectly affect
salary structures, allowances, and
company benefits for employees in the
UAE.
A detailed look at the corporate tax
landscape in 2023, including updates
from the authorities, compliance
strategies, and key implementation
dates.
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