The holding company is a corporate structure which offers many advantages in terms of management, growth and tax optimization. In this article, we'll explore the reasons why setting up a holding company is a good idea. a strategic option for entrepreneurs and investors.
Why set up a holding company?
A holding company makes it possible to group together the shareholdings of different companies, thereby facilitating tax management and reducing the overall tax burden. In addition, holding companies located in tax-advantaged jurisdictions such as Andorra offer further opportunities for tax optimization.
Holding companies are generally better able to raise funds from banks and investors, making it easier to finance growth projects.
A holding company offers the possibility of acquiring or merging with other companies in order to expand. M&A operations are facilitated by the holding company's structure and ability to consolidate the assets and liabilities of different entities.
The creation of a holding company protects the company's assets by separating risks and responsibilities between the various subsidiaries. In the event of financial or legal problems, the holding company's assets remain safe.
The holding company facilitates the transfer of business assets by enabling a better distribution of shares among heirs and avoiding conflicts linked to the management of the company.
Creating a holding company offers many advantages for entrepreneurs and investors, in terms of management, growth and tax optimization. If you are planning to expand your business or protect your assets, creating a holding company may be a strategic option to consider.
