- Brazil-based digital bank Nubank is considering moving its legal domicile from the Cayman Islands to the U.K.
- The domicile move is pending approval from HM Revenue & Customs, as part of the U.K.’s efforts to attract tech companies.
- The potential move involves legal and tax registration changes rather than relocating management or operational offices, offering potential benefits like a favorable tax environment and better access to international markets.
According to a Bloomberg report yesterday, digital bank Nubank is considering moving its legal domicile to the U.K. This would shift the Brazil-based company’s domicile from the Cayman Islands, where its current holding company is based.
If finalized, the move, which is still pending approval from the U.K.’s HM Revenue & Customs authority, would be part of the U.K.’s initiative to bring more tech companies into the country.
“Nubank continuously reviews its corporate legal structure to align with the footprint of its operations,” a Nubank spokesperson said in a statement. “At this time, no decision has been made regarding the redomiciliation of Nu Holdings Ltd. or any other legal entities within our group. As a publicly traded company, we are committed to transparency and will follow standard communication protocols if and when any such decisions are made.”
Relocating a domicile location is different from shifting headquarters location. The latter would mean moving primary executive offices and central operations to the headquarters location. A headquarters change would impact where the company’s management and administrative functions are based, while a domicile change would primarily come with tax implications.
Moving its domicile to the U.K. would involve Nubank changing its legal registration and tax residency to the U.K. This shift would subject the company to U.K. corporate laws and tax regulations, which could potentially come with benefits, such as a more favorable tax environment or enhanced access to international capital markets.
Since it was founded in 2013, Nubank serves 92 million customers in Brazil, over 7 million in Mexico, and close to 1 million in Colombia. The company surpassed 100 million customers earlier this year and has a strong foothold in Brazil, where its app is found on the phones of around 60% of all Brazilian adults. Nubank, which went public on the New York Stock Exchange in 2021, has a current market capitalization of $65.7 billion.
Photo by David Peterson
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