Holding Management

TAX PLANNING / Holding Management
 
Definition

A holding company is a corporation that limits its business to the ownership of stock in and the supervision of management of other corporations. It does not produce goods or services itself. Holding companies achieve the reduction of risk for the owners and can allow the ownership and control of a number of different companies.

Cyprus as the ultimate EU holding entity
 
As a former colony of the United Kingdom, Cypriot company law incorporated many features from its former ruler, and a Cyprus limited company shares the same basic architecture with UK Limiteds. But that is where the comparison ends.

When you set up business in Cyprus, you will enjoy much lower taxes and the following Cyprus company benefits:

  • the lowest corporation tax in Europe 12.5%,
  • the most generous participation exemption,
  • no withholding taxes except on outgoing royalties paid on rights exercised in Cyprus,
  • no capital gains tax except on real estate located in Cyprus,
  • the lowest social security tax rates in the EU,
  • no CFC rules
When you set up business in Cyprus note that your company will be managed and controlled from Cyprus itself. This will provide the substance you need for your tax planning. Another reason for choosing Cyprus is its high confidentiality, with little information on public record, as well as its adequate banking secrecy.
 
Are you interested in setting up a company in Cyprus, and want to know what Freemont can do for you? Do not hesitate to Contact us

Dubai RAK offshore Company as a holding entity
 
The UAE is a white listed onshore jurisdiction that offers business opportunities that exist only in mature industrial and financial hubs. International companies moving to the UAE find themselves in a thriving market with excellent infrastructure.
 
The RAK/ RAKICC Offshore company is by far the most popular for international entrepreneurs looking to set up their business in the UAE. They posses a plethora of very interesting features from which you can highly benefit.

When you compare RAKIC/ RAK offshore and other offshore jurisdictions your wealth is equally secure and confidential in either of them. But there are some important differences mainly in costs of registration, documents demanded from shareholders, permitted activities and property registration scope.

They are ideal for any type of business that does not require a local office, including passive investment activities. Examples our existing clients use include

  • Holding shares in international, local or free zone companies
  • International consulting
  • Investment company
  • Trading activities outside the UAE
  • Holding intellectual property
RAKIC/ RAK offshore companies have the following benefits:

  • 0% Corporation tax, 0% VAT and no income tax.
  • No requirement for the owner or director to visit the UAE in person
  • 100% full foreign ownership
  • Confidentiality is preserved; there is no public record of shareholders or directors
  • No audit requirement or requirement to submit financial statements
  • Possibility to open a solid bank account in Dubai
  • A registered office in Dubai (through Freemont Group)
Just like local and free zone companies, these offshore companies can benefit from some of the tax treaties concluded by the UAE while still benefiting from the strong client confidentiality rules applicable in the UAE. Using a RAKIC/ RAK offshore as a shareholder of a freezone company can prevent otherwise significant legalization charges.
 
Contact us for a Free Consultation on your personal situation. Feel free to subscribe to our Free Newsletter to keep up-to-date to the latest industry developments.
 
 
 

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Thank you for your interest in Freemont Group, the specialists in company formation, asset protection and legal and advisory . Feel free to contact us with any inquiry you might have. We will provide you with a free initial consultation, and a customized solution for your personal situation.