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What are the major benefits of a Holding Company, offshore or onshore??


Corporate Services
Business Angel
Jan 11, 2009
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So, I need to know what the major benefits are for a Holding Company, it dosen't matter if it is offshore or onshore, just in general.

Okay, if their are on top of the regular benefits are also special benefits with an Offshore Holding Company, then let me know about them too.

I'm planning a 1 man company which will sell some products online, I expect to have a annual turnover in the range of EUR 50.000 to 70.000.

In anyway I will go for an offshore company.
It depends very much on where you are considering to form the Holding Company, for instant it is very common for both offshore and onshore businesses to form a Holding Company in Denmark (part of Europe) the tax benefits, if it is a combination of a non EU company and Danish Holding company, are unique and you won't find the same savings anywhere else (In countries where you pay tax).

In general for Danish Holding Companies

What is a holding company, and how it works and what does it cost to create?

A holding company is roughly a company that owns the securities of another company.

There may be great advantages of having it if you already own shares / securities of a company personally. Especially if you are in time and generation, or later sell without personally being taxed.

In a holding company the following rules aply, if it just owns 25% of the subsidiary for at least a year, it may take up tax-free yield (applicable Danish holding companies). This enables the capital of the subsidiary are minimized to the commercially reasonable. Thus it may be cheaper to buy for a son or partner or a whole third.

When you sell the subsidiary must pay for the margin on the shares / shares if you own it personally. If you have owned it for less than three years, the capital, otherwise it is equity (28-43%).

When you sell the subsidiary but it is owned by the holding company for over 3 years, sales tax.

To take money out of the holding company dividends paid 28-43% in taxes.

It costs around EUR 4-10,000 to create a holding company according to the advice you get with whether there should be several to owning the subsidiary, etc.

Beside the major Tax benefits, above, also apply for any other Holding company regardless where it is located.

The major 3 are : Assets protection, Tax safings and Privacy Protection!
Forming a Holding company in Cyprus or Belize will maximize you protection of privacy and against any claims or liabilities, I read this on several websites and it is the most common thing to do for the majority of business people.