Investments in an overseas country are risky, as well as a profitable option. High-net-worth individuals and globally established companies prefer to invest in offshore investments to get rid of taxes and protect their assets wit high-end security. The spiking growth of the offshore business segment has provoked multiple nations to convert or avail the offshore business option, which resulted in boosting the economies to a great extent. One of the most comprehensive options for offshore investment is to proceed with the incorporation of a holding company.
If you are a foreign investor or a business professional looking forward to investing in an offshore holding company, then this guide will provide you the necessary details that you need to know prior.
An Intro to Holding Company
As per the corporate guidelines, a holding company is an established legal entity that gets incorporated intending to hold the shares of other companies. Practically speaking, these entities are never involved in the business transaction or production process. Here’s a guide on the top eight reasons to set up a holding company, that provokes an investor to invest in.
Steps to Start a Holding Company in Offshore Jurisdiction
To incorporate a holding company in an offshore jurisdiction, one needs to go through the following process.
- Understand the Business Needs
It is essential to be clear and precise when it comes to the incorporation of business needs. A holding company is a business entity that is widely accepted due to tax reduction and asset protection. Here’s a guide on asset protection trust planning, which will help you to help to understand the context in a better way.
- Select a Certified Business Consultant
Once you are clear with the business needs, the second step is to proceed and join hands with a business expert who can help you to deal with the legal proceedings and clear the process in a hassle-free way. Experts like Business Setup Worldwide, one of the top business consultants in the UAE, can help you to deal with the process smoothly.
- Plan the Business Structure
It is essential to define a business structure to start a holding company. It can be formed either through a Corporation or an LLC. It is vital to start your business with the guidance of experts.
- File the Business Application
One of the most vital steps is to file the holding company application and submit it to the respective authorities. Along with the duly filled application, the other essentials are to be provided, which includes the following:
- Copy of passport and visa of the shareholders
- Memorandum and articles of association
- Well-drafted business plan
- Relevant fees to incorporate the holding company
After submission of the documents, it will undergo the scrutiny process accordingly by the relevant authorities.
- Open a Bank Account
Once the company records have been submitted accordingly, the next step is to open an offshore bank account, which will help to deal with the relevant business transactions. To get a more understanding, read our guide on the Advantages of Offshore Banking.
- Accumulate Funds and Start Operations
To begin the process of investing, the holding company needs to be financed accordingly. It is to be noted that the wealth of the subsidiary companies are to be stored in the holding company. Once the company gets financed appropriately, it can be utilized to take the necessary steps and perform investment operations.
- Keep the Records Updated
Maintaining the business record is one vital part that can’t be excluded. Once the holding company gets established and start the process of owning shares in the other companies, a proper track is to be maintained accordingly. Maintaining these accounting and bookkeeping records appropriately helps the business entity to calculate the transfers at the end of the year.
Thus, you have got a clear idea regarding the steps they need to be followed to incorporate a holding company. Proceeding with experts will turn out to be beneficial as they are well-versed with the relevant processes. To understand the core reasons for hiring an expert, read our latest guide on Four Core Reasons to Hire an Offshore Business Consultant.
With the intent of providing the best company incorporation services, we at Business Setup Solutions have been helping numerous business investors over the years. Our business advisors are well-versed with the company setup process for both onshore and offshore jurisdictions. With industry experience, they can understand the business needs and provide tailored solutions accordingly. If you are looking forward to incorporating a holding company in any of the popular offshore jurisdictions, feel free to discuss with our experts. Contact us today-we’d be glad to assist.