Company redomiciliation and alternatives for changing the jurisdiction of companies in Colombia, Chile, Mexico and Peru
During the development and operation of multinational enterprises, in some cases and for a number of reasons (strategic, market, risk, among others), they are faced with the need to explore alternatives for changing or transferring their registered office to a different jurisdiction. This process, commonly known as “cross-border redomiciliation”, consists precisely of the act whereby a company decides to transfer its domicile abroad without first undergoing a liquidation process or a business reorganization such as an international spin-off or merger.
These decisions are accelerated and adopted due to multiple internal and external factors; in many cases, they are due to the need to seek jurisdictions that are more favorable and advantageous for the company’s organization and operations.
This article provides an analysis of the legal feasibility of cross-border redomiciliation in Colombia, Chile, Mexico and Peru from a corporate law perspective, considering alternatives and structures that permit a company to transfer its domicile and cease to be established in its jurisdiction of origin. We will focus on the corporate law aspects only, without delving into tax aspects or implications.