A holding company can be established and used for holding equity shares or providing loans to subsidiaries located in high tax jurisdiction. Most high tax countries require tax to be withheld on dividends and interests which are paid to non residents.
One needs to be mindful while deciding where to set up his Investment Holding Company by taking into account various factors such as withholding tax, income tax and capital gains tax and whether or not the jurisdiction where the holding company is set up does benefit from non-double taxation treaties, especially with the country where the investee company is based.
Basically each solution needs to be structured according to the country where business is to be conducted, as well as the resident state of the beneficial owners.
The Mauritius GBC1 is a suitable vehicle which can be used as an Investment Holding Company. It has access to nearly forty five Non-Double Taxation Treaties which Mauritius has signed with various countries. Non Treaty Countries can still benefit as Mauritius under its domestic law has a Unilateral Tax Credit available. Finally, it is also good to note that, there is no Capital Gains Tax in Mauritius, hence paving the way for an efficient exit strategy for the beneficial owners.
Finsburey will provide you with the following services:
- Company and other entities formation.
- Provision of Registered Office Address.
- Provision of Directors
- Provision of Secretary.
- Open bank accounts in nominated currencies.
- Bookkeeping and accounting including tax filings where applicable
- Corporate administration and other miscellaneous services.