Legal considerations
The quest for holding a company does not end with mere selection of a tax relaxing jurisdiction. The regulatory bodies have amended stricter rules to combat potential risks that tag along with fraudulent business operations. Some of the notable legal requisites are as follows:
| Legal frameworks |
Important requisites |
| Economic Substance Act |
- Applies to companies conducting “relevant activities”
- Proper evidence of business operations
- A registered local agent
- No tax evasion
- Physical office space and working staff
|
| Financial Action Task Force (FATF) |
- Avoid illegal financing and money laundering
- Follow the 40 recommendations diligently
|
| Environmental, Social and Governance (ESG) |
- Combine sustainability with operations
- Maintain labor rights and be socially responsible
|
| Common Reporting Standards (CRS) |
- Maintain financial transparency
- Exchange accurate financial information with institutions
|
Other jurisdictions for Offshore Holding Company setup
Selecting the right location for your company involves considering various factors such as low tax rates, full asset control and long term business support. The key is to select a jurisdiction that best supports your holding company objectives. Below are the best jurisdictions for holding companies:
| Country |
Notable features |
Best for |
| Cayman Islands |
- Tax-free environment
- Robust regulatory framework
|
- Multinational firms
- Holding assets
|
| British Virgin Islands (BVI) |
- Supportive corporate laws
- No bearer shares
|
|
| Hong Kong |
- Doorway to global market
- Advanced banking services
|
- Investors
- Giant corporations
- Traders
|
| Belize |
- Easy compliance rules
- Tax efficient
|
- Pure equity holding companies
- Wealthy individuals
|
Starting a holding company can be a strategic move for businesses and investors aiming for cross borders assets and subsidiaries control. The main crux lies in selecting a jurisdiction that supports your business goals and being compliant with both the domestic and offshore regulatory frameworks. Our team at SCR specializes in company formation and are well recognised for credible services. Contact us today to incorporate your Seycehlles offshore holding company!