What you need to know about an offshore holding company

An offshore holding company is a very special company whose existence is based on numerous international treaties linking countries with a high tax rate. This structure is set up to exploit tax windows and operates differently from a classic tax-exempt company.

Indeed, in the case of a holding company

It is its system in itself that is considered a tax haven. In order for it to be created within the legal framework, it is necessary to invest in a country that has not concluded a double taxation agreement and to choose a jurisdiction adapted to economic activities.

It is also possible to combine the dividends of the operations carried out by the branches. creation company Hong Kong

The holding company or parent company holds corporate rights in various companies, with the aim of forming a group that it will manage or not, depending on the case. Most of the time, it constitutes its portfolio of financial holdings by targeting a set of companies with activities or common interests.

The holding company is used to structure the assets of a company, optimize the taxation of a group of companies and facilitate its transmission. The tax law distinguishes passive holdings from active holding companies.

However, different types of holding companies can be distinguished: financial holding companies, banking holding companies specializing in air or rail transport, and holdings specializing in information and communication technologies.

In which case create a holding company?

So as a reminder, we use such a structure for investment management or patents. There are also two fundamental reasons for setting up a holding company: buying back other companies and benefiting from an appropriate and favorable legal and fiscal framework.

It offers the advantage of rapidly increasing your capital. You can create an offshore holding company as part of a buyout, the creation of one or more subsidiaries or in the case of a tax or patrimonial optimization.

A holding entity can have any legal form. If you have any questions on the subject, the Belmont Fiduciary team is at your disposal.