Holding companies are a great way to transfer your tax liability to a jurisdiction offering attractive benefits and tax rates. That said, the management of your holding company can become rather involved, leaving you with less time to concentrate on the day to day running of the business interests it represents.
If you think you would be able to make use of the administration and management services offered by several holding company specialists, keep reading to learn more.
The completion and filing of paperwork is a necessary if somewhat tedious task. Tax returns need to be filed no matter what your company is involved in which can become a job in itself. To make your life easier, there are several administration services available to the owners of all Swiss holding companies. These include;
- Signing contracts with third parties and suppliers as required.
- Entering into transactions and facilitating the purchasing and invoicing process.
- The maintenance of detailed accounting records which can be compiled and submitted as required.
- The drafting and submittal of all statutory returns, whether VAT, income tax or corporation tax related.
- The handling of all business-related correspondence which includes, telephone, mail and electronic enquiries.
- The provision of a registered office address which acts as the physical location of your holding company.
As you can see, the services offered are extensive. You will often find that you no longer have to spend as much in Switzerland or involve yourself with the day to day running of your holding company once you’ve transferred all responsibility to a management consultant.
The benefit that some holding companies cite as invaluable is removing the need to directly hire members of staff to oversee these processes, alleviating the need for time consuming job interviews and actively managing these staff.
You will often find that most management consultants are also well versed in the tax laws surrounding Switzerland. If you’ve set up your holding company to provide a tax benefit that involves reducing your liability, the advice offered by such a consultancy firm will be invaluable.
They will be able to assist you in:
- Drafting an effective tax strategy that allows you to optimise the efficiency of your business operations.
- Facilitate communication with third party experts in the field of Swiss tax planning for all those cases which require specialist knowledge.
- Provide guidance on the extent of double taxation treaties as well as how you could best utilise them to reduce your overall tax liability.
- Further advice on royalty and dividend distributions to maximise tax efficiency.
Holding Company Management
We’ve only begun to scratch the surface but as you can see, your work doesn’t end upon the formation of a holding company. Active management and the oversight of day to day affairs will become an ongoing concern and one that needs to be managed well.
The owners of most holding companies prefer to concentrate on your businesses which make the services of a management consultant invaluable for maximising efficiency and making sure the law is complied with to the letter.