A holding is two or more legally connected companies that conduct a common business. If you are thinking about starting this type of business, you need to figure out how to do everything right to work effectively without risks and penalties. To help you in this matter, we have prepared today's guide.

How an international holding company is registered

The holding sounds massive, solid, and already from the name it is clear that we are talking about a large business. They are created for various reasons: from the desire to provide services in different countries to increase profits by separating activities into different companies. But how is this possible? Everything is quite simple: the parent company - the backbone of the entire business, owning most of the shares - provides support to subsidiaries, reducing the cost of capital due to its general strength.

That is, the parent company is needed not to conduct business, but to manage other companies, receive dividends, own assets and organize lending and financing. These assets include funds, bonds, real estate, trademarks and marks, patents, copyrights, and many other things of value.

However, the real advantages of registering an international holding are completely different factors. Namely:

  • Income from dividends received is not taxed.
  • There is no tax on the distribution of dividends.
  • The capital gains tax rate is zero.
  • It is possible to refinance companies.
  • There is an option to simplify the processing for the transfer of assets between firms.

But to get the above benefits, you need to go through the registration process and start by choosing the right jurisdiction. And for this, you need to decide which form of taxation suits you best, what tasks the holding and its beneficiaries have, whether it is necessary to obtain a residence permit / work permit in another country and, in general, develop further plans for the development of the holding. In such important matters, it is always better to seek the help of qualified lawyers in order to get the desired result without misfires.

Registering an offshore holding: advantages and disadvantages

Many entrepreneurs prefer registering a holding offshore, and there are a number of reasons for this:

  • There is an opportunity to take the business to the international market and cooperate with international partners.
  • You can easily start and manage foreign assets.
  • The process of export-import operations is facilitated.
  • You can be sure that your property rights and your capital are protected.
  • The tax burden on businesses is reduced.
  • It is possible to diversify risks through asset allocation.
  • At the same time, there are many recommendations for the business to work effectively:
  • Subsidiaries should not be empty companies. They must have an office, working staff, management, so that auditors do not have questions about the reality of the business.

It is in order to create a well-functioning holding chain that you should seek the help of qualified specialists.

Why you should seek professional help

And you will find these at CRYSTALTAX. When ordering our services, you can expect that a whole team of lawyers, financiers and accountants with extensive experience in registering companies in accordance with all legal norms will work with us. But turning to us you get a number of important advantages:

  • Detailed consultation, during which you get answers to all your questions.
  • Full support during the registration process or solving the case without your participation.
  • Collecting the required package of documents and, if necessary, issuing a license to conduct certain types of activities.

Therefore, if you are determined to organize a holding and want to get the right result without doing anything, contact our company for help. The experience of our specialists guarantees you getting what you want at an absolutely adequate price. Sign up for a consultation and see for yourself! 

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Maksym Stepanenko

Maksym Stepanenko

Managing Partner, Crystal Tax

International client projects since 2012: company structures, tax, immigration, DUNS and NCAGE. 50+ jurisdictions.

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