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Open a foreign holding in 2021

Advantages of registering foreign holdings

2021-01-06
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Registration of foreign holdings provides a quality tool for the protection of own business and its development. These structures can be used to control the work of companies that are located in different countries. They allow to legally reduce the level of taxation and optimize the cost of doing business.

Concept and objectives of creation

A holding is an association that is controlled by different organizations. The structure implies the presence of the main company - a management company. As a rule, it has shares and shares in the capital of other companies, as well as ownership rights to patents and licenses.

Businesspeople open foreign holdings in 2021 in order to reduce the tax burden. In addition, these structures are created for the following purposes:

  • Ensuring business confidentiality;
  • Increasing the respectability of the business;
  • Ensuring the protection of the company and assets;
  • Controlling the company's operations;
  • Limiting transfer pricing between subsidiaries.

Holding has some differences from other types of businesses. The most common is the absence of fixed assets, which are required for production. The structure has securities of companies in different fields from several states.

Holdings can be financial or mixed. The first structure implies that the capital consists of more than half of the shares of other firms. The mixed type has its own commercial activities - usually in the field of information technology.

The structure of the organizations can be simple or multi-stage. In the second case, there is not one but several controlling companies, which lead the management of subsidiaries.

In terms of specialization, it is possible to distinguish structures that include only companies engaged in agriculture or technology. There are also combined firms, conglomerates, and associations.

Where to open a holding

Beforehand, it is required to choose a suitable jurisdiction. It must have signed agreements to avoid double taxation. It is desirable that there are preferential tax regimes, and it is not difficult to set up a company.

The use of a structure makes it possible to intelligently distribute all the tasks between the participants, optimize the payment of taxes, provide a high level of anonymity, as well as reduce the cost of managing multiple companies. There is a high level of protection of assets, and the anonymity of business is increased.

UAE

Opening a holding company in this country will make the business more profitable, it is possible to freely enter and exit capital, as well as increase reputation. With the help of the structure, it is possible to combine several areas of activity and simplify management. Within the holding unrestricted transaction schemes are allowed. Jurisdiction has many agreements to avoid double taxation. There are no charges on income, assets, and capital gains.

Switzerland

This type of company is legal and relevant for conducting international business. Corporate and income tax payments can be optimized. An obligatory condition, which allows classifying a firm as a holding company, is that there is no commercial work within the country.

Portugal

Opening a holding company allows full control over assets located in the country. Structures are protected by current European Union directives. Tax exemptions and preferences can be obtained. There are no capital gains and corporate fees, and you can get a deduction.

UK

The main advantage is that dividends from overseas are not subject to fees in the jurisdiction. Capital gains tax can be avoided on the sale of shares in subsidiaries if the requirements are met. Contact our specialists at IT-OFFSHORE to learn more about the nuances of business registration.

Cyprus

Holding in this jurisdiction becomes a tool of international planning and optimization of tax payments. Registration procedure does not take much time. On average it takes around 14 days if all necessary documents are submitted. International activities do not require a license unless the work is included in the list of areas for which additional permission is needed.

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