In order to make an important decision like establishing a holding company in another country, it is important to understand exactly what this unique type of organisation really is and what it actually can do for your business. According to most definitions, a holding company allows a parent firm and its directors to influence and/or control subsidiaries.
Venturing outside your primary industry is one of the main reasons to establish a holding company. You may also benefit from tax structures, be able to share losses that result from operation, and be able to divest your company from others. Each country has slight differences in their legal definition of a holding company. In some places, it is necessary to hold 80 percent or even 100 percent of the voting shares of the subsidiary. However, you may be able to find a location that allows holding for as low as 5 percent.
Switzerland
There are many holding companies in operation around the world, some of which own dozens of companies that are not related to the core business, in terms of products and services. If you’re considering the establishment of a holding company, you may want to consider Switzerland. You will not be able to conduct any other business in Switzerland, but the benefits are quite attractive.
In this European nation, one of the government divisions is called a canton. This subdivision is established for both political and administrative purposes. Certain cantons offer a structure of low taxes and a business-friendly environment, which makes them attractive to those looking to set up Swiss holding companies. If this is of interest to you and your colleagues, you may want to work with a company that has extensive experience in this field.
The experts there can explain applicable regulations, such as the amount of investments held or revenue earned that will allow the holding company to remain and operate. There are specific time structures and participation levels that must be met as well. Meeting this conditions would mean that the holding company would be exempt from tax in some cantons and would pay a reduced capital tax rate.
Federal Benefits
With the help of these professionals you can also benefit at the federal level, with benefits such as no federal tax payable on income or on gains from qualifying participants. You will also find assistance with the exceptions to these tax privileges, as well as the specific situations in which you and your company would benefit financially.
When you consider setting up a company in Switzerland, you would be wise to work with specialists in the formation, registration, and administration of companies. They offer experience with numerous clients who have international business interests and investing activity, but want to enhance their tax advantages and financial security.
You may want to visit their extensive website to learn more about what they have to offer. There, you can gather information about specific services and browse sections to find the answers to your questions. Of course, you are invited to contact a representative to learn even more about this opportunity.