Whats an Cyprus Holding Company?

[rotaro]

I have been visiting and speaking to many peoples so far for our new business venture for 2010, some say we need a Holding Company in order to archive our goals where others say we don't need that!


Can anyone explain to me what a Cyprus Holding Company is?


Basic information; we are starting an internet shop, selling ticket's to football games and other sport events, our expected turnover is 50k - 100k / month the first 6 months after that we expect the sales to go up to reach about 500k / month.


So as you may see we expect this to be a long term business and hopefully doing plenty of money, so we want the company structured correctly from the very beginning.

 

[JohnLocke]

Actually it is not difficult to explain what a holding company is, it dosen't matter where it is located:


A Holding company is a company which owns the shared (typically) in a trading company, this due to security reason and to protect past earnings / profit.


In Cyprus it is allowed to pay out divident from the trading company to the Holding company without paying any tax, this makes it attractive to larger corporations and as mentioned it provides an extra layer of privacy and security.


The detailed definition of a holding company can be found here: Holding company - Wikipedia, the free encyclopedia