Why Switzerland Is the Best Place for Your Holding Company
So you’ve got multiple companies, and managing them is becoming a hassle. You are considering creating a holding company to manage the others, but aren’t sure where to set up. You’ve probably heard about Switzerland being the most popular location, but maybe aren’t sure why. Let’s take a look at what Switzerland has to offer, and how you can form your holding company.
What is a Holding Company?
Most people have heard of holding companies, but few really understand them and how they work. At the most basic level, a holding company is a company that’s sole purpose is to manage other companies. A holding company will own the majority shares of subsidiary company’s stock. Most laws dictate that in order for a company to qualify as a holding company, it cannot be engaged in any other form of business.
Creating holding companies allows more effective and streamlined management and operation, in addition to providing tax and other benefits.
Switzerland: Watches, Chocolate, and Holding Companies
The Swiss are famous for many things, one of which is being a popular location for forming holding companies. Holding companies in Switzerland enjoy a favourable tax climate and fewer regulatory barriers than other countries. Luxembourg, Spain, and England are also popular choices, but all have higher corporate tax rates.
This does not mean, however, that forming a Swiss holding company is an easy task for an individual. Switzerland may be very pro-business and offer great tax advantages, but there is still a jungle of regulations and legal hurdles to navigate before successfully setting up your company.
Use a Holding Company Creation Service
To make the aforementioned process easier and less painful, you should use a holding company creation service that can provide careful insight and knowledge into the detailed process of creating a Swiss holding company. Many also supply holding company management services as well, making the process even easier. Other services that can be offered include (but are not limited to) tax services, administration services, fiduciary services, operational services, accounting services, and more.
A highly-skilled, expert holding company creation service will discuss all of the options with you, while also still listening to your concerns.
Don’t Get Yourself in a Legal Bind
Too often owners of holding companies have found themselves in precarious situations due to ignorance of international financial laws and treaties. For this reason, a comprehensive holding company management is essential. There are simply too many pitfalls and dangers to go it alone when starting a holding company. Don’t make a mistake that could lead to costly fines or even imprisonment.
A Swiss Holding Company is the Smart Choice
There are numerous reasons to form a Swiss holding company to manage your companies. It’s no coincidence that Switzerland is the most popular country to set up a holding company. Additionally, finding a good holding company creation and management service within Switzerland is an equally wise decision. Reduce stress, increase dividends, and protect yourself as assets by choosing Switzerland as your holding company location.