Holding Company Formation

What is a Holding Company?

Holding companies are generally incorporated for acquisition of assets, investments and for managing other companies. It is generally listed by shares. The main business activity of a holding company is to own assets of another companies in the form of shares, real property and intellectual property.

UK is considered as one of the best locations to incorporate a holding company as companies holding substantial shares in other companies are exempted from capital gain tax. Incorporation of a holding company is a time consuming process sometimes due to the late responses given by company’s house specifically in case when you apply through post. Every document submitted by you must be correct and in proper format otherwise it will be rejected by company’s house. These companies are generally made for taxation, commercial & legal reasons.

Finacbooks not only helps in filing appropriate documents correctly but also advice you on your company name, draft your memorandum and articles of association and deals with company’s house on behalf of you to provide you the most efficient service without any delay. We provide you easy & quick online incorporation service.

Information needed for setting up a Holding Company in UK

Following information is needed for registration of holding company –

• Name of the company
• Registered office address
• Director’s details (Minimum of one)
• Shareholder’s details ( Minimum of one)
• Standard industrial classification codes (SIC)
• Memorandum of association
• Articles of association
• Details of shares issued to shareholders
• Information about people with Significant control (PSC’s)
• Documents to support the use of sensitive words in the company name.

Benefits of a Holding Company

The benefits of a holding company are as follows –

1. Substantial tax relief (In case you are receiving revenues from foreign subsidiary companies)
2. Exemption from taxes on subsidiary dividends (In case of less than 50 employees)
3. No UK taxes to be paid (In case of sale of subsidiary firm)
4. Exemption from capital gains (In case of share disposal by companies)
5. This proves to be very beneficial in expanding business worldwide.