January 19, 2023
Creating a holding company can be a complex process and it is important to understand the tax and legal implications before making this decision.
Your company is growing and you already have several subsidiaries or entities, or are planning to create some this year? Do you want to grow externally by acquiring another company? Then you have certainly asked yourself whether you should now also create a holding company...
To help you make the right choice, here are several things you should know. Obviously, to go further, ask us! Our Success Coaches will help you answer your questions and implement the solution best suited to your growth objectives.
A holding company is a company that holds interests in other companies. It can be used as a management structure for the ownership of different businesses, or as a way to diversify risk by investing in several different businesses. Holding companies can be used to protect the assets of your company, to facilitate financial transactions and to optimize taxes.
A holding company can be a listed company or a private company. It can take different legal forms. They also exercise control over the companies they own by deciding on their strategy and management policy.
The advantages of a holding company may include better asset protection, as investments are generally separated from the company's operational activities. A holding company also provides greater flexibility for financial transactions, such as mergers and acquisitions. Finally, holding companies can reduce taxes by pooling the profits and losses of multiple companies.
To create a holding company, you must create a new company and "capitalize" it. It is also important to define the objectives of the holding company and to plan the investments to be made.
It is important to note that these steps may vary. Depending on the country and jurisdiction, holding companies may be subject to specific rules and regulations. It is therefore important to find out about the laws and rules in force before creating a holding company.
Obviously, your CPA is the first person you should ask for help. At Blendy, a digital accountant, we help several of our clients with this specific growth issue. To find out how we can help you and what type of structure to put in place, ask our team.
Experts in business management, our Success Coaches advise you on the choices available to you and accompany you at every stage, in particular to ensure that all legal and tax procedures are respected.
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