Holding Company . What is Corporate Structuring and HOLDING company. How to setup a Holding Company.
"There has never been the better time, in history of time, then right now to start a business"(Quote:Gray V. - Wine library TV & vaynerMedia Founder).
New entrepreneurs and SME always wants to be Multinational and own multi businesses. And it's a good way to be successful and rich. Because if you have multiple businesses and you are in multi countries then you can survive better than the people who have one business in one country. Suppose if you have multiple businesses or same business in multi countries and one of your business or in one country is not running well so you can have other source for income, and you can manage to stable that unstable business and survive. On other hand if some one relaying one business in one country and the Business goes down due to any reason the entrepreneur will be in deep trouble. Any may the person quit Business and go for JOBS. Where the Entrepreneurs generating JOBs now find Jobs:-(
As a consulting specialist i have seen many cases where mono business owners face that type of problem, but the people who have multi business in Multi countries they manage the hard times. So i always appreciate peoples who want to have multi business in multi countries and to be BIG in future.
I hope everyone will be agree with me that we always take alternative in any matter of life, then why not in Business , which is back bone of our survival. The person with options never fails.Many New entrepreneurs and SME want to have multiple Business but they stuck to following problems.
How to manage to work in multiple sector.
How to manage growth strategy.
How to protect brand or difficult to decide that which(from multi business) will b leading brand.
How to manage legalization. ETC
SO DEAR Entrepreneurs and SME's do not worry about all of this, you need structuring or restructuring. The above all "Hows" can be managed by single hand.
What is business Structuring and HOLDING COMPANY.
If you have multi business or in multiple countries and you want to take under umbrella. So go with
which must be 100% owned by you. Because in many countries the corporate structure does not allow the 100% ownership you must have a partner of resident of that country.
In that many SMEs and entrepreneurs get confused and get worried about the brand protection, assets and a wealth management.
Back to basic point. you must have a company which will be 100% owned by you. For this purpose i suggest the OFFSHORE Company is most best option. Because Offshore company can be incorporated in weeks, less cost of incorporation, less documentation, no office required, no staff required and you can have a legal entity with bank account all and other corporate benefits.
Onshore company can be Holding company, But all onshore companies are subjected to activity of business.
And when you are looking to setup a HOLDING company then the activity barrier can cause problems to hold companies, so OFFSHORE Company is open to conduct all business activities. That's why we recommend OFFSHORE COMPANY as HOLDING COMPANY.
HOW YOU PUT MULTI BUSINESS OR BUSINESS IN MULTI COUNTRIES UNDER ONE UMBRELLA.
For example you have have 5 Business in 5 different countries or One type of Business but in different countries. ( Australia, China, Dubai, South africa and Qatar) multi businesses (Food, Oil and Gas, Services, Pharmaceuticals etc.
So you want that all your business and in all countries will run or operate under one Name(Brand), the financial reports and financial come to one account and other liabilities and assets management.
In this HOLDING company comes in::::::::----------------------
You have Multiple options now, example Want to start business in South Africa and Dubai and you have already business in China , so make a OFFSHORE company Lets say You made BVI Offshore company (British virgin Island Offshore). So in Dubai or in GCC you cannot hold 100% shares of onshore company (non free zone company) so what you do.
Make Offshore company and register trade mark. Offshore company can register trademark.
Lets say you start business in Dubai and going for incorporation and You will place that Offshore company as partner instead of yourself. And ultimately you are the ultimate Beneficial owner of the OFFSHORE COMPANY. When this Offshore company will be the partner of that company you can make a contract between THAT OFFSHORE COMPANY and new incorporates company .
what the contract will " that the offshore company giving the registered to this new company to use as brand and in return the offshore company will take 99% of income shares and hold all assets of new company".
In this way you protected your wealth , assets and brand (trademark). Same you do in South africa and China then all three companies ( China, South africa, Dubai) will come under One umbrella THE OFFSHORE COMPANY which is HOLDING company.
You protected the following things.
ADVANTAGES of HOLDING company.
As stated many things above about advantages. But some unique advantage needs to be highlight.
-> Person Die but company cannot
Means GOD forbid, if some mishap happen and the person is not able to manage or run business or he/she die. Then a ocean of problem comes for owning and transferring of shares in multiple countries and multi business business. So in Holding company you everything will be safe under one entity and if some one passed then the ownership of business and shares will be easily transferred to attorney person.
Everyone know that there is differ will rules in different countries, so if you have different business in different countries then very difficult to make will in all countries and go with different regulation. So in holding company you can make attorney to your siblings and share distribution on your own will. So full protection if some pass away or some accident happened.
Other the your HOLDING company is open to conduct every type of Business activity so you can make Onshore branches or subsidiaries of that holding company.
How to setup a HOLDING company and HOW it works.
I just wrote very less details of HOLD company structure and advantages, its not easy to share all details in one article. So wait for my next article.
Or if some one looking for more information, or want to setup a HOLDING Company ( Offshore COMPANY) feel free and contact me on below contact details.
It will be my pleasure to assist you in your Business journey.
"I knew that if I failed I wouldn't regret that, but I knew the one thing I might regret is not trying." - Jeff Bezos, Amazon CEO
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