3 Benefits to Set up Holding Company

Post date: Sep 23, 2020 11:29:23 AM

A Set up holding company is a form that owns exceptional stocks as well as shares of other companies. The term typically refers to a company that does not fabricate or manufacture goods itself but owns the shares of other corporations that fabricate goods as well as services. Holding companies lessen the peril for owners by retaining the ownership of several companies.

Why register a Holding Company in the Philippines?

Form holding company, also known as Regional Headquarters nearby can be set up only by multinationals running operation in at least one Asia-Pacific state. While the holding company may conduct a few operations, such a business unit should be mostly utilized for the management as well as supervision of its Philippines and other Asian countries subsidiaries.

Advantages of Registering a Holding company

Attractive Tax Policies

Once you register your holding company in the Philippines, there is a hundred percent exemption of corporate tax on all earnings inward from abroad, if the holding corporation conducts no operations in the Philippines, or an abridged corporate tax rate of ten percent if otherwise. A holding company registered will not undergo taxation from local authorities as well as customs duties on imported equipment as well as cars.

Easy Access to Visas

The employees will have the advantage of easy access to visa due to the less documents requirement in case of a holding corporation.

Low Legal Risk

A holding company is fundamentally just a shareholder in the organization as well as doesn’t run the same legal danger as if they produced the goods as well as services. If you register a holding corporation, you won’t have a direct lawful responsibility that is costly in nature since yours will be a separate lawful entity.