The choice of location of a holding company is a strategic decision when thinking about structuring any international business, especially if the desire to minimise tax and to protect the assets held is key.

A holding company can be defined as a company established for the sole or majority purpose of holding shares in a group’s subsidiary companies incorporated in countries in which the group is engaged in business activities.

The holding company receives the dividends paid by those subsidiaries and uses them to declare a dividend to the ultimate parent.

Ideally, the jurisdiction chosen should fulfil certain criteria to render it an attractive place to form a holding company, including the following:

  • Recognised stable legal system
  • Double tax treaty network, thereby minimising withholding taxes on dividends received
  • Dividend income exempt from taxation
  • No capital gains tax on the disposal of subsidiaries
  • No withholding taxes on distributions from the holding company to its parent or shareholders
  • No capital gains tax on profits arising from the sale of shares in the holding company by non resident shareholders
  • No capital duties on share capital
  • No minimum paid up share capital
  • No restrictions on the movement of capital

OUR ROLE

Prior to setting up a new holding company for you we will, amongst others:

  • Assess your current business situation and future corporate goal
  • Advise you on the best structure available to you
  • Incorporate & administer your new company
  • Perform a full range of corporate management services
  • Manage the company bank account opening procedure on your behalf
  • Put in place a representative office
  • Provide sound accounting and VAT services
  • Offer asset protection advice