Operating Holding

The subsidiary is a branch and the parent company is operational.

 

Management-Holding

Important decisions and control are exercised by the parent company. The head office of the parent company can therefore be relocated for tax reasons in a country with more favorable tax laws.

 

Financial-Holding

The financial holding either serves as an intragroup bank or assumes asset management.

 

Organizational or structural holding

If a company is divided into different divisions, it is called an organizational or structural holding.

 

Holding company as a share holder

The holding acts only as a shareholder, the operational control is taken over by the subsidiary, in order to reduce the administrative expenditure.

 

When does a holding company make sense?

It makes sense to start a holding company, if there are several founders or shareholders. Each individual can thus incorporate their own holding company, which then participates in the operating subsidiary.
It also makes sense to form a holding company if it is foreseeable at the time of establishment that the company should be sold again after a few years. Because when selling a capital gain of about 98% can be used for reinvestment purposes.

 

The advantages of a holding

• - Tax savings

  Within a holding company, the profits of the subsidiary can be transferred to the holding company at favorable tax rates. 95% of the amount is therefore tax-free. The remaining 5% will then be taxed at the standard rate.

 

• - Liability protection

  A holding structure protects assets, provided the profits are transferred to the holding. The parent company is not liable for the subsidiary. If there is a liability case, only the subsidiary can be accessed.

 

• - Risk management

  If there are high-risk areas in the company, these could be outsourced to a separate subsidiary. Thus, in the event of damage, only the subsidiary would be liable

 

• - Protection of business assets

  The business assets can also be protected by a holding company. If e.g. If a subsidiary is only established for implements or the like, the business assets would be protected if another subsidiary had a liability. For example, Software licenses or machinery could be introduced into a holding company and would therefore be legally segregated from the operating subsidiary.

 

• - Anonymity

  There is the possibility to run a holding anonymously. This can be advantageous for a variety of reasons, e.g. for price differentiation or for image purposes. Through activated trustees one can reach this anonymity. For outsiders, except for the tax office, it is therefore no longer comprehensible who leads the company.

 

The biggest mistakes when starting a company abroad

Not all topics related to founding a company abroad are always free of prejudices and false information that have prevailed over the years. We give you an overview of the most important questions about founding a company abroad.

Founding a company abroad as a citizen of another country is legal?

Founding a company abroad as a citizen of another country is legal?

Yes, in most countries foreigners can be sole shareholder of a local entity.

Do you have to live in the country where you start a company?

Do you have to live in the country where you start a company?

No you can set up a company anywhere in the world, as long as the country in question allows you, as a foreigner, to acquire shares in local companies. If this is not the case, trustees can be used. Freedom of establishment applies within the European Union. However, it is important that the management takes place locally, in the country in which the company is registered. In addition, a permanent establishment must be set up. Without this, a German tax office will not recognize the company and, in the worst case, would demand back payment of corporate and trade taxes plus late payment penalties. We rent you a real office and set up a permanent establishment that meets all requirements without a doubt. In addition, we have real managing directors who run companies in the home country and are resident there.

Problematic law firms: closure is made more difficult

Problematic law firms: closure is made more difficult

Some law firms tie clients with gag contracts and apply pressure when the client wants to close their business. If you are a client of a law firm that has set up a legally unsound company for you, you make yourself vulnerable to blackmail. Because in the event of a tax problem, law firms without a license are not bound by a duty of confidentiality.

Changing offices is made more difficult

Changing offices is made more difficult

We receive many inquiries from customers who already own a foreign company and are looking for a new law firm. Switching to us is then often made more difficult. So horrendous final bills are made, which have to be paid before a change is possible. Therefore we have developed a trust principle. If you are not satisfied with us and want to switch, you can do so at any time. You will receive the necessary documents (resignation letter) from us in a standardized form after the foundation. This protects you from unexpected costs and you are free to go to another law firm at any time. So far we have not lost a client to another law firm.

Privacy Policy/Office Location

Privacy Policy/Office Location

Your accounting documents are safe with us. In addition, all electronic data is only stored in encrypted form and apart from us, who are bound by professional secrecy, no one has access. All accounting documents are also only stored locally. Neither authorities nor hackers can access this data.

No taxes?

No taxes?

There are certainly locations in the world that do not charge any taxes to companies and private individuals or only charge a very low flat-rate tax. However, this can rarely be used without a corresponding change of residence. If you are resident in Germany, the relevant double taxation agreement is decisive. Providers who promise otherwise will tempt you into tax evasion, which is usually severely punished if discovered. We advise you not to set up companies in countries that have already been blacklisted by the OECD. The foundation is usually very cheap, but the tax consequences in Germany can be devastating. Since the introduction of the automatic exchange of information between almost all major countries, an anonymous account or company no longer exists.