Offshore Company Services Offshore Company Services

Offshore company services include a variety of company formation and support services for offshore...

Offshore Countries for Offshore Holding Offshore Countries for Offshore Holding

To register or form an offshore holding in a given location, various conditions should exist to...

Offshore Holding Company Offshore Holding Company

An offshore holding company can be a firm or company that owns shares in other companies. These...

Offshore Holding Company

An offshore holding company can be a firm or company that owns shares in other companies. These other companies are called subsidiaries. An offshore holding company does not always have to be involved in the process of producing goods and services and can be used solely for the purpose of holding shares in its subsidiaries.

An offshore holding company is an ordinary offshore or international business company (IBC) that is incorporated and registered in an offshore jurisdiction. The procedure for incorporating a company offshore is simple and can be finalized within a matter of just a few working days. Offshore holding is therefore the activity that an offshore company chooses to engage in, resulting in it being called an offshore holding company. This means, therefore, that an offshore holding company is not necessarily a special type of offshore company per se, but rather is an offshore company that is being used as a holding company offshore because of its main function and activity in holding. To explain, the same can said for an offshore shipping company, offshore consulting or telecoms company, since these are not special types of offshore companies, but the types of businesses can offshore companies can be used for.

As an international business company (IBC), an offshore holding company enjoys the rights, powers and benefits of an offshore company. An offshore holding company can engage in any legitimate business in addition to its holding functions, can trade anywhere in the world, is a legal person that exercises the same rights of a natural person and is able to open and manage accounts, enter contracts, invest, pursue legal proceedings, take loans, acquire real property and undergo legal charges or claims.

Offshore holding companies enjoy a tax exempt status that permits them to operate efficiently with regard to tax liabilities and maximize profits. Also, due to the privacy that offshore companies obtain from the law by which they are governed, holding companies offshore are valuable in protecting assets which can be transferred to the offshore holding and placed under its ownership, thus reducing and controlling how much of a person’s assets can be lost to a claim or lawsuit. In just the same way, a holding framework allows a parent company (offshore holding company) to isolate liabilities and obligations within specific subsidiaries so that loss or failure of one subsidiary does not affect the whole. Claims or legal proceedings can be directed towards the subsidiary concerned and can be isolated so that legal suits are not placed on all subsidiaries, including the parent company, since each subsidiary would be its own legal person.

As an international business company, a holding company offshore is required to honor its annual maintenance obligations in the jurisdiction in which it is incorporated and inform its registered (in the jurisdiction) about any changes made to the company with regard to the addition, resignation or dismissal of directors and shareholders, increase, decrease or transfer of shares, change of or to the company’s trade name and any other amendment that alters the original constitution of the offshore holding company.

Back to Top