The Government has launched a consultation on plans to implement a new regime to allow foreign companies to re-locate to the UK.

The introduction of a new ‘re-domiciliation’ regime – which enables a foreign-incorporated company to change its place of incorporation while retaining its legal identity – has been in the works for some time. Following a 2021 consultation on whether it should be made easier for foreign companies to move to the UK, an Independent Expert Panel was established to determine how such a regime could be implemented. Its report was published at the end of 2024 and informs much of the Government’s proposed approach.

The need for change is set out clearly in the consultation document. It explains that a re-domiciliation regime would “ensure the services sectors continue to thrive and grow whilst also bringing opportunities for investment and the creation of jobs”.

A new regime would constitute a significant departure from existing mechanisms for moving a company’s place of registration to the UK which are described as “costly and complex, making the process unattractive or financially unviable in some cases”. Typically, this involves winding up the existing foreign company and establishing a new company (and legal identity) in the UK. This, in turn, involves transferring assets, re-drawing contracts, and potential exposure to additional tax liabilities.

The consultation sets out proposals for how the new regime would work, and the criteria that would apply for a foreign company to re-domicile. These include, for example, that the company is solvent, that its proposed directors are not subject to asset freezes or director disqualification sanctions, and that particular information is provided, including a solvency statement.

It also outlines how the application process would work in practice, how applications will be determined, and the effect of inward re-domiciliation, including whether tax legislation may need to be amended (which the Government says it will consider in more detail once the re-domiciliation framework has been finalised).

The consultation closes on 19 June 2026 and can be found here.