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Coddan CPM Ltd. – Company Registration Agent in the UK
Home Limited Companies Advantages of Starting Up a Holding Company in UK Establishment of a Holding Company to Hold Shares in Multinational Companies

Establishment of a Holding Company to Hold Shares in Multinational Companies

Establishment of holding company to hold shares in multinational companies

Register a Holding Company

Establishment of holding company to hold shares in multinational companies: the purpose of a holding company is, as its name suggests, to hold shares in other companies. They reduce the risk taken on by the owners and can be used to take ownership of multiple separate companies without, for example, having to alter already existing license arrangements.

For anyone interested in registering a holding company to hold shares in companies in several different countries, the choice of which country to register UK holding company is something that should be considered carefully. Different countries have different taxation regimes relating to holding companies. This will impact on how expensive it is to withdraw dividends or sell shares in the limited company.

In 2009 the UK introduced a particularly favourable taxation regime for holding companies to allow it to compete with more established locations such as Luxembourg and Denmark. Here are some of the advantages of the UK as a holding company location: -

  • There is an exemption for corporation tax equivalent to any withholding tax paid on dividends withdrawn from foreign companies plus any tax paid on profits to foreign governments.
  • There will be no tax paid on dividends from subsidiaries if the holding company has less than 50 employees and a turnover of less than 10 million Euros
  • There is no corporation tax to pay on dividends from a UK subsidiary of a UK holding company
  • There will be no capital gains tax to pay on the sale of an operating subsidiary
  • Non-resident shareholders are not eligible for capital gains tax when they sell shares in a UK registered holding company

Coddan can help to register a holding company in the United Kingdom. We offer a range of packages to suit a wide variety of customers. Our first holding company registration for UK residents costs £52.00 and will generally result in your company being set up within six to eight working hours. With this package you will receive a certificate of incorporation and the memorandum and articles of association.

For additional fees we can add extra services such as a registered office address in England, Scotland or Wales, nominee secretary and nominee directors. With the nominee service you can ensure that your anonymity is preserved after you register your holding company. The registered office and nominee services incur an annual fee and will be withdrawn if this is not paid.