2. Setting up Holding company
• A company that planning to set up abroad needs a solid strategy to ensure they
create a strong corporation.
• One way to do that is building a holding company to own the shares of the
operating companies.
• In order to set up holding company, it is necessary to plan the process of
transferring of the shares of subsidiaries to holding company at lowest cost with the
possibility of eventual profit.
3. Risk Reduction with Holding Company
• The procedure of forming a holding company reduces the risk of the parent
company as they do not need to bear the legal risks in the new market
• The major benefits of creating a holding company is that they the holding company
has ample funds to acquire subsidiaries and they can also create new trading
operations.
• Companies can set up holding company through transfer of shares of subsidiaries
that were previously held by individual shareholders.
• Even if the operation companies doesn’t exist prior to the formation of the holding
company still the role of each company can be defined within the group.
4. Benefits of Holding company
• The business owners can also set up private foundation to reduce risks.
• Holding companies can provide support for the entire group of operations (HR, IT,
marketing, accounting, etc.).
• The resources can be centralized and shared within the holding company.
• The holding company has more bargaining power than a subsidiary and it is
responsible for the negotiation.
• The revenues, mainly from the dividends coming from a subsidiary, and the
expenses are confined to the holding company
5. Financial benefits
• Setting up a holding company has its set of fiscal benefits as it can eventually
reduce the taxes and increases the free-cash-flow
• The process increases the investment capacity of the business
• It’s necessary to plan to transfer the shares of the subsidiaries to the holding
company at the lowest fiscal cost
• A holding company provides benefits when it comes to the acquisition of a
company through debt
6. TBA & Associates
• TBA associates provides world class consultancy services and advice the
businesses to set up holding company.
• They help with all the procedures and help the business make the best decision.
• They provide consultation and advice to setup private foundation in the best
possible manner by fulfilling all the legal requirements
• They also help set up a holding company to give the parent company the financial
strength to obtain financing costs below those paid by the subsidiaries.
