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Form A Holding Company
Incorporating as a holding company is often undertaken to make business management more efficient, increase access to investment capital, and to reduce the overall tax burden of a business. Holding companies do not get involved into the day to day business operations of its subsidiaries, opting instead to limit their activities to holding and managing investments of property, stock and other assets. Shareholders invest directly in the holding company by buying shares, and do not invest into the individual subsidiary companies.
This is achieved by creating an umbrella entity that deals with every subsidiary company's banking, legal, property and investment interests, while the subsidiaries themselves concentrate on their core business functions.
|A holding company need not be limited to owning capital assets; such entities are commonly used by high net-worth individuals to reduce their tax burden on assets as diverse as real estate, stocks, objects of art, air-planes and yachts, and international bank accounts. |
Setting up a holding company in the UK has never been easier. A standard limited company registered in the UK may be used as a holding company of any kind of entity anywhere in the world. Not only do such business structures enhance the owner's privacy, they also decrease the UK tax liabilities of overseas divisions. The UK government has taken many steps to encourage business growth, and has offered a variety of incentives for businesses looking to incorporate in the country as holding companies.
Registering your international holding company in the UK carries with it many benefits. The headline corporate tax rate of the UK is the lowest of any major world economy, and generous interest relief provisions are in place to decrease taxable profits, making the effective tax rate even lower than it appears on paper. The UK also has the largest number of double taxation treaties of any country in the world, giving your business unprecedented coverage in protecting its overseas assets.