Advising Holding Company Structure

I was able to learn from a Client that they had operations in Europe and the Middle East. These businesses were run by separate legal entities. The only thing that connected them was a shared ownership. After reviewing the operations, I presented the client with options for creating value in his business through the incorporation of a Holding Company. The holding company will be tax efficient and will have the shares of all entities that are based in Europe or the Middle East.

The Holding Company’s objective was to consolidate and negotiate favorable bank facilities for the client. The Holding Company’s goal was to consolidate the value of all business operations and negotiate favorable banking facilities for the client.

The investments of the group were spread in several countries in Africa Middle East and Europe. Therefore, I was required to review the conditions in each country.

As I was analyzing the Holding-company Jurisdiction characteristics, I discovered that Singapore is more advantageous than New York and London jurisdictions when it comes to Tax treaty networks, tax free Dividend flow and cost of setting the company up and maintaining it.

I had done a comparison of key factors of holding company jurisdictions. Summary of Tax analysis indicative Costs, Road map of Go to Structure and Indicative Cash Flow for various options. Starting with profit beforetax, applying the prevailing % of tax, jurisdictionwise and net dividend in hand for shareholder.

After thorough analysis, I recommended to my client that a two-layer structure be created. One Mauritius company holding all entities from Africa & Middle East and one Netherlands company holding entities from Europe and Lebanon. Above the Mauritius Company and the Netherlands Companies, which are subsidiaries to the apex Holding Company.

I also included the steps and migration process along with the roadmap, indicative cost, to complete the entire process.