Why Should You Invest in a Holding Company?

“The big money is not in buying or selling, but in the waiting.”—Charlie Munger

Investment is one of the tough decisions, which, if done wisely, can fetch huge benefits. With the advancement of global trading, business investors located in different parts of the world hold the flexibility to invest and earn handsome benefits.

One such emerging grounds are the popular offshore jurisdictions, which attracts the business investors much.

Investing in an offshore business is one of the smart moves that any business owner/investor can make. An investor needs to understand how does an offshore company work to reap out the maximum benefits.

A holding company is one such domain that can be considered, and investments can be made accordingly. In simple terms, a holding company represents a legally established business entity that owns stocks and investments across various sectors. It can hold the form of corporate ownership or a conglomerate in various offshore jurisdictions.

By investing in the holding company, one can grab the following benefits:

1.It Provides You with High Asset Protection

When it comes to opening of a holding company, asset protection is a significant concern among 90% of the investors. As it is known that a holding company can hold different types of business assets, it includes the following:

  • Property
  • Intellectual Property
  • Any equipment

The assets held by a holding company gets protected from the business creditors and another dimension of liability. If you are looking forward to protecting the assets that you hold, then you can rely on investing in a holding company.

2.Holding Company Minimizes the Business Risk to a Great Extent

Dealing with risk is another primary concern that drives business investors to invest in a holding company. As it offers high-safety and security, the holding company ultimately minimized the business risks to a great extent.

Also, business investors have access to Offshore Banking, which will help them to secure their finance.

3.Free the Business Owners from Tax

Tax is one of the unavoidable moves that drive the business investors to proceed towards investing in a holding company. The investors hold the flexibility to enter into a tax-group, which makes them feasible to pay the tax quickly.

4.Centralized Control

The holding company, along with its subsidiaries, holds a centralized board of directors that controls the entire system. For example, if the board introduces a budget planning structure or debt-structuring process, then it gets applied to the available subsidiary units.

Also, the board can help the subsidiary units individually to benefit from the same.

5.Succession Planning

As a holding company provides high flexibility to the business owners to diversify or invest in new grounds, the central board also holds power to ensure the power of continuity of the business entities when the key people in the board decides to leave.

High-net-worth-individuals or families prefer to invest in a holding company to enjoy the above benefits. Here’s a guide on Family Holding Company, that will help you to understand the concept well.

Business incorporation in a foreign land might turn out to be a complicated task if one is not well-versed with the process.

The challenge while incorporating an offshore company is to deal with the legal proceedings as it needs to be carried out in an error-free way.

We at Business Setup Worldwide do understand the incorporation process in and out. Since incorporation, we have been helping numerous business investors, which have helped us to be one of the top ten business consultants in the UAE.

Work done by experts fetches out high-quality output within less time. Here’s a guide on the Four Core Reasons for Hiring an Offshore Business Consultant, which is a must-read before proceeding ahead.

If you are looking forward to investing in a holding company, feel free to have a word with our experts.

Contact us today-we’d be glad to assist.