Starting up a business can be the dream of many, many people all over the world. Unfortunately, that dream will often remain just a dream, as starting up businesses and keeping them successful is often a challenging task. But, there are still people who will pursue their dreams, and by doing so, have the opportunity to begin a business in one of the best ways possible. By choosing to rely on a holding company, you can rest assured knowing that you will be able to get the most out of what you do.
With all this being said, you might not know what to think about a holding company. To understand the benefits of working with a holding company, it is important to know what exactly a holding company is. To put things simply, a holding company is a company that buys and possesses the shares of other companies. This is great when you want to invest in company shares, but don’t know how to manage those shares. Now that you have a good idea of what a holding company can do, you can now begin to understand more about what a Swiss company can offer.
What Should You Know?
When it comes to relying on a Swiss holding company to help you out, the main thing you will want to pay attention to is Switzerland’s low tax regime. Because of this, Switzerland has a very business-friendly environment, making it one of the best places to establish and rely on a holding company. This is just one of the many reasons why you should keep an eye on such holding companies.
There are also two conditions that have to be met for this holding company’s status to be preserved. These conditions are the following: held investments/revenues must represent at least two-thirds of the assets or income earned, and at least one participation must exceed 10% of the total shares, or all the shares exceed CHF 1,000,000. When both of these conditions are met, a company can be classified as a “holding company,” and holding companies are not allowed to handle any other business procedures aside from managing shares of other companies.
In addition to this, you should also know that the way holding companies are taxed is also significantly different than other companies as well. No matter if you are planning to take part in a holding company’s services or you want to set up your own holding company in the heart of Switzerland, this is something that you should always take into account.
Are Holding Companies Worth it?
Choosing to rely on a holding company is one of the best things that you can do for yourself when you are trying to manage business shares, but you do not know how. Especially when you can find a holding company that is located in a low tax regime area, such as Switzerland, you can rest assured knowing that your holding company is taking care of just about everything that has to do with your business shares.