Group structures are often administratively convenient and economically efficient. They often separate and isolate business activities, property rights, or international licenses. A holding company and its subsidiaries may be located in different jurisdictions. Although this is often convenient, there are some concerns as well. Although Gibraltar does not require international companies to submit audited financial statement to the respective tax authorities, there may global requirements to present audited or consolidated accounts in host countries.
In an international setting where business activities have a cross-border nature, group structures can often be incorporated anywhere and without restrictions. As a result, many virtual and global corporations seek for the best environment to incorporate their holding company. A holding company is positioned at the top of the corporate triangle holding the assets of subsidiaries. Even though repair legislation tries to annul fiscal abuse, the appropriate corporate set up and structure still allows for profit shifting to the holding company. But that is not all since a holding company is often just practical for business purposes.
The most common use of a holding company is to hold the shares in a subsidiary or different subsidiaries. Yet, holdings may also include intellectual property rights, trade secrets, real estate, licenses or other valuables that require a shielded legal person for asset protection purposes. Speaking of which, the Gibraltar holding company can also enter into civil agreements with third parties. For example to execute specific activities for subsidiaries, or to open safety deposit boxes to hold physical or tangible assets.
Gibraltar has a sophisticated and well-respected corporate infrastructure. As such, there is comprehensive approval and willingness to engage in commercial activities with companies incorporated in Gibraltar. Alongside all the well-known advantages of the Gibraltar company with non-resident ownership, the holding company often has access to the European single market. From a financial and wealth management perspective, there is no capital gains tax, wealth tax or VAT, and companies that do not trade in Gibraltar can receive tax exempt status for corporate income tax.
Gibraltar Holding Company
The Gibraltar holding company has an internationally recognized and professional appearance. As such, it is relatively easy to conduct cross-border activities and retain professional services abroad. Financial institutions, banks and the novel FinTech firms are often eager to accept Gibraltar companies in their portfolio. However, one should realize that also the Gibraltar holding company is subject to compliance with the applicable rules.
For more information on incorporation in Gibraltar or setting up a holding company, please complete the contact form below. We will get back with you at short notice to discuss your personal situation and provide you with all the information you need to set up the most appropriate legal person in Gibraltar, or elsewhere.