A holding company is a system of commercial organizations having a managing company managing control shares package or pays of its subsidiaries and subsidiaries. The managing company may have other functions. A subsidiary is a company the majority of the voting rights of which is held by another company or if another company directly or indirectly exercises a dominant influence on it.
Holding companies are emerging globally because of widely spread integration processes. Why the companies join to holdings? The holding is created for a specific purpose – the conquest of new markets and / or reducing costs. Both of these factors increase the value of the company; in order to achieve this objective, it is required the entire system and not only managing company, to work efficiently.
It should be noted that the value of the holding shares grows in case the whole system works effectively (the management of the company and its subsidiaries).
Recently, due to the integration of business and globalization processes mergers and acquisitions are becoming increasingly popular. The companies are established in different countries and combined into groups. In order the whole holding system to work effectively and to ensure the effective tax planning, it is important to choose the right place for registration of the holding company as well as for its subsidiaries in the place of registration and to establish the principles of work between them. The correct choice of jurisdiction for each company and of their legal form as well as adjustment of the entire system to the specifics of particular business makes it possible to reduce the tax burden.
Taking into account the needs of our clients, we provide the following services:
- Advice on place of registration of a holding company;
- Advice on place of registration of subsidiaries;
- Advice on legal form of non-resident companies and their management specifics;
- Accounting for non-resident companies, legalization of documents;
- Appointment of management bodies of non-resident companies;
- Review of documents and legal support of non-resident companies (obtaining and renewal of Good Standing Certificates and other necessary documents);
- Advice on international taxation;
- Advice on tax optimization.