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Why using a foreign holding or trading company?

Some of the motivations for individuals and corporations to utilise foreign holding or trading companies include the desire to:

Motivations
  • Reduce tax;
  • Protect assets;
  • Manage risk;
  • Maintain privacy;
  • Avoid bureaucracy.

Reasons and advantages

More broadly, the reasons for choosing certain countries for the establishment of holding-, trading- or other kind of companies include:

  • Anonymity and confidentiality;
  • Low or no taxation;
  • Exchange control, free remittance of profits and capital;
  • Secure banking systems;
  • Banking privacy;
  • Access to double tax treaties;
  • Security of property rights;
  • Access to foreign insurance and reinsurance;
  • Customs and duty exemptions;
  • Foreign investment inducements;
  • Tested legal systems;
  • Higher yields and returns;
  • The availability of sophisticated banking facilities;
  • Political stability.


 
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Last Modified: 12/09/2007 @ 12:52 GMT | Copyright 2003 Consulco | Info | Contact | Disclaimer International Edition | Developed by Netymology