Five Considerations When Choosing a Location for a Holding Company

Holding Company

One of the main reasons business owners form holding companies in other countries is for the tax advantages. Many countries, such as Switzerland, exempt holding companies from paying federal taxes on capital gains or income. There are several European countries that offer tax benefits and other incentives to businesses to form holding companies, but there are several things besides tax incentives to consider when choosing a location for your holding company.

Financial and Economic Infrastructure

When considering where to form a holding company, it is important to choose a country with a solvent financial infrastructure. If the banking system has had problems, then you won’t want to put your money into the system and risk losing it. In addition, the telecommunications system, including Internet accessibility, should be modernised with widespread availability throughout the region where your business is located.

Political Stability

A country that is politically stable is also important because instability can affect the economy and the ability to make agreements in other countries. Switzerland is seen as one of the most desirable countries in which to form a holding because it is very stable politically, socially, and financially. You should consider forming a Swiss company holding from Co-Handelszentrum because they offer several services that will help you to commence doing business in Switzerland.

Business Laws

Some countries have very favourable business rules and regulations that allow business owners to keep more of the money that they make instead of paying a large amount of it in taxes. It can be easy to form a holding company in many of these countries because they don’t require a huge influx of cash and will allow foreigners to start businesses right away if they have the money to do so. It is important to study the business regulations when choosing the location that best fits your needs.

Language and Culture

For most industries, English is the language of business and you need to be in a country in which English is one of the languages that most people speak. This will not only make it easier for you to understand transactions, but it will allow you to do business around the world when looking for companies and assets to acquire. A culture that is welcoming to foreign business owners and a population that is bilingual are other reasons that Switzerland is a favourable country for forming holding companies.

Workforce Availability

A well-educated workforce should be another consideration when choosing a country in which to do business. Since business trading and acquisitions can be complicated, it helps to have access to intelligent people who understand the business or can learn the information quickly. Switzerland has a highly educated populace, which is another reason it is considered a great place to do business by foreign business owners.

While tax incentives are certainly an important consideration when choosing where to start a company, they are only one of the many things you need to take into account. Protect your investment into a country by using this list of considerations.