The advantages of forming a holding company in the United Kingdom: although the formation of a holding entity brings general benefits in any location, choosing to be based in the United Kingdom also has a unique set of benefits. The majority of these are based upon taxation regulations, and when receiving advice from a Coddan approved accountant or tax advisor, businesses will be able to take advantage of these - both legally and efficiently.
The UK government has recognised the need to offer this type of arrangement to businesses that are keen to take advantage of a UK holding company registration, and they are actively offering a real alternative to getting set up in the Benelux nations or elsewhere.
Under taxation laws in the United Kingdom, holding companies receive substantial tax relief when receiving revenues from foreign subsidiary companies. This relief is delivered by offering a reduction in UK corporation tax obligations that is equal to the amount of foreign withholding tax that is paid on dividend amounts, and this also takes into consideration any taxes paid on overseas profits in general.
In addition to this, holding companies incorporated in the Great Britain are exempt from taxes on subsidiary dividends if they number less than 50 employees (the balance sheet must also be under the 10m Euros level). In the event that a subsidiary firm is sold, no UK taxes will be incurred by a holding company. This can potentially be a complex process, and Coddan specialists can offer expert advice about all aspects of holding company formation in England, Wales, Scotland and North of Ireland for this purpose.
When contacting us for advice about setting up a holding enterprise that is based in the UK, business owners can benefit from a level of holding company incorporation expertise to ensure that the most appropriate type of registration will take place.