WHAT IS BUSINESS RESTRUCTURING?

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.

WHEN DO COMPANIES NEED BUSINESS RESTRUCTURING SERVICES IN THE UAE?

There are many signs that indicate a company may need to consider restructuring. Some of the most common scenarios include:

WHEN PROFIT MARGINS STAGNATE OR DECLINE

HIGH TURNOVER WITH MINIMAL PROFIT RETENTION

HEAVY LOANS, INSOLVENCY, OR NEAR-BANKRUPTCY CONDITIONS

UNDERUTILIZED WORKFORCE AND INEFFICIENCY

LOW TEAM MORALE AND DISSATISFACTION

EVOLVING OR DECLINING MARKET DEMAND

EXCESSIVE OR UNMANAGEABLE DEBT

OUTDATED OR INEFFICIENT SYSTEMS

LACK OF LEADERSHIP OR POOR MANAGEMENT STRUCTURE

SUDDEN PRICE SHIFTS IN THE INDUSTRY

LABOR-RELATED DISPUTES OR STAFFING ISSUES

A SUDDEN SURGE IN MARKET DEMAND THAT THE BUSINESS CANNOT MEET

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.

KEY BENEFITS OF BUSINESS RESTRUCTURING IN UAE

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

CONCLUSION

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

FREQUENTLY ASKED QUESTIONS

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.

RELEVANT BLOGS

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Impact of Corporate Tax on Individual Salary in UAE

Explore how the newly introduced
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Mon, 13 Nov 2023

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A detailed look at the corporate tax
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