HOLDING COMPANIES
Many clients use offshore holding companies to implement joint venture projects, hold publicly quoted companies, to own and fund subsidiaries in various jurisdictions, and other variations that we here at Cityscope can tailor to your needs. In certain circumstances, it is possible to make capital gains arising from the disposal of investments free of tax. Subsidiaries may also benefit from tax deductions and interest paid on the capital provided by the holding company.
Holding Companies can be separated into two categories:
COMMERCIAL HOLDING COMPANIES
Jurisdictions which are partners to many double taxation treaties can be used as channels to pass on profits. The dividends made by these partners can be transferred by a commercial holding company to offshore parent companies with negligible taxes in these jurisdictions if any at all.
PERSONAL HOLDING COMPANIES
Assets like investment portfolios or property in perhaps different countries owned by an individual could be held by an offshore company. This beneficial administrational structure, along with other benefits, allows confidentiality and privacy.
Several of Cityscpe’s current clients combine the offshore holding company with a trust owning the holding company for asset protection reasons.