What is a holding company?

Do you want to set up holding company? You need to first understand what exactly it is and how it works?

Setting up holding company simply defines that it owns most of the stock or membership interest in a subsidiary, if not all. However, each of them active in business and it may also own high-value assets of the businesses.

Many people are oblivious about incorporating holding company in a hassle-free way although heard about it before. Well, it is created either through a C Corporation structure or through a Limited Liability Company (LLC) structure. Even, most of the bigger companies are formed as holding companies.

In other words, forming holding company involves making a Parent company on the top to hold the assets of the subsidiaries. However, it relies on different factors. You must aware of all the factors in terms of process, asset protection, and tax. Most important thing is that you should have assets and businesses that have a comparative amount of liability.

Key pros of Setting up a holding company-

Different benefits are there that make sense why should you incorporate holding company, as given below-

Lessen risk factors- It is one of the most important factors in every business. Reducing risk can help you a lot. If your company has multiple trades or has distinct investments such as property, then you should disrobe it into separate subsidiary companies under the common control of a holding company. In this way, you can easily reduce the risks.

Protect asset- The structure of a holding company can be used to hold the trading or investment property, plant and machinery, intellectual property, and excess cash to allow for investments of a business.

Tax benefits- Dividends can easily pass between the subsidiary companies and the holding company sans experiencing tax charges and also, it avails tax exemptions.

Shared costs- It offers the opportunity to the admin to make charges to the subsidiaries. It ensures that the costs are shared suitably amongst them.

However, you need professional advice when planning to register holding company. It helps to evade any surprise tax charges and other risks. TBA & Associates specializes in tailored solution and offer tax-efficient structures to clients. We can help you to form a holding company in a professional way. You have to maintain proper business records and abide by state law. It is an asset protection aspect.

Please don’t hesitate to drop your mail or give our expert team a phone call to know more about it.

Why TBA

What separates us from our competitors is that our services don’t end with the registration of your company. We offer a wide range of additional services others can’t or just won’t offer, such as lifetime free support.

Whilst most providers either specialise on personalized consultation at relatively high rates or run bulk registration factories without any support, we want to offer the positive aspects of both types.

Therefore TBA combines professional advice, worldwide registration services, reasonable fees, customized order processing, lifetime support and fast processing. Where others see company formation services as a bulk registration with no support and no individual assistance, we do care about your business needs.

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Our multi-lingual team of business advisors is happy to assist you with all upcoming questions and issues in relation to your company.

You may call or email us, and we will be happy to assist you in a fast and efficient manner.

You can also come and visit us at our Limassol offices to discuss issues face to face if you prefer. Just arrange an appointment and we will be happy to meet with you.