Eternity Law International — News — Business structuring: specifics of commercial organization

Business structuring: specifics of commercial organization

Published:
September 20, 2022

Considering largest enterprises in the CIS and the European space, it can be revealed that the majority of them are owned by foreign investors. Simultaneously, bulk of such organizations are located in Luxembourg, Holland, Switzerland, and also in Cyprus. This means that for certain reasons, at some stages of fulfilling commercial activities, the owners of large enterprises change business structuring and create holding – model that combines management chains into one general structure.

What is alternative business structure: holding concept

Holding is a type of business structure – vertical consolidation of legal entities that includes a maternal enterprise and subsidiaries. Maternal organization controls subsidiaries operation and controls their shares. The holding is usually not engaged in trade, services or production. The main task of the holding structure is assets ownership and management. But in certain European countries, it is possible to combine the work of the holding and trading purposes, however, from the point of view of security and asset protection, this direction of mercantil implementation isn’t recommended.

Purpose of merging firms into a single holding

The main tasks of holding business structuring are:

  • profits accumulation in state with smallest taxes;
  • possession of corporate rights of other enterprises, real estate, valuable documents;
  • firms’ protection company from external encroachments;
  • high level of investor security;
  • financing of the constituent parts of the holding;
  • owning intellectual rights and receiving royalties;
  • reduction of tax rates when selling part of the business to other investors;
  • taking loans and raising money outside jurisdiction to invest in similar projects;
  • organization of a unified management system.

Holding location

When choosing jurisdiction where holding organization will be registered, it is necessary to take into account the tax treaties that exist in the countries. The choice of most profitable international treaty is called the purchase of treaties.

It is important that there’s simply no better jurisdiction for business processes. But, by analyzing firm’s goals, you can select most suitable place to set a holding. Often, European states are perfectly suited for holdings. Now most often holdings are registered in Holland, Switzerland, Luxembourg, Liechtenstein and Denmark. Virtually all of these states possess strong protective laws and stable banking system.

Structured business to protect assets

Holding basis is a special trust mechanism, organized in a state with well-developed protective laws. The rule of connection of jurisdictions is the main law of commercial consolidation. Legal support during holding creation consists of many steps.

  1. At the start, a legal analysis of the current position of the group, identification and resistance to risks is carried out.
  2. Next, the company’s specialists create a strategy for corporate ownership, management, commodity-financial flows and the economy.
  3. Then you need to create a business plan.

Before changing structure of business, it’s important to evidently think through the goals and identify all the tasks. This will enable you and the specialists of our firm to properly structure the holding.

Before planning the process, it is important to understand what kind of structure you want, what types of activities will generate profit, what you will focus on in your work, who will be the owner of the holding, etc. Analysis of the current situation is the main step in commercial planning.

If you intend to buy a business, contact us for thorough advice on structuring. Our company always takes into account the rules of combining jurisdictions, choosing only the best from each country. We will help to make a step-by-step restructuring of firm and establish strong holding. Our experts prepare a legal opinion; it’ll indicate the ownership model and management structure of commercial projects. Activities list needed to create a holding will have a schedule and a phased plan for their implementation. In addition, we are also ready to offer you many options for ready-made companies for sale.

You can see our current offers in the categories “Cryptocoins and licensing of cryptocurrency operations”, “Ready-made companies”, “Banks for sale” and “Licenses for sale”.

You could be interested

Open a Trust in Luxembourg

The choice of a place to set up any company should be conscious and carefully analyzed. If the co-founder of the company makes a mistake, he will miss out on profits and his project will take longer to pay off. Each form of ownership is created to solve certain business problems. If co-founders are interested...

Difficulties and problems BEPS

Difficulties and problems BEPS, what you need to know? Few people know about the existence of an organization for economic cooperation and development. This company perceives the erosion of its tax base and the withdrawal of income from high tax countries (BEPS) as the main strategy for tax avoidance. Which applies shortcomings and inconsistencies in...

Bosnia and Herzegovina Authorised Crypto Companies

The proliferation of digitalized economic constructs has engendered unparalleled prospects for entrepreneurial ingenuity, with authorised crypto companies in Bosnia and Herzegovina solidifying their stature as a nucleus for blockchain-related mercantile pursuits. Situated at the confluence of Eastern and Western financial methodologies, this Balkan jurisdiction affords a conducive legislative landscape interwoven with an advancing technological paradigm....

Regulation of Payment Institutions in Poland

In an era characterized by the intricate interplay of global economic networks and the ubiquitous presence of digital exchanges, the paramount function of transaction facilitators takes center stage. As a member of the European Union, Poland has scrupulously devised a multifaceted legal framework with the aim of enhancing the resilience, security, and fluidity of monetary...

The entry of foreigners to Ukraine

The entry of foreigners into Ukraine in accordance with the prescribed standards of Ukraine and the state – the homeland of the immigrant. In addition, border crossing rules depend on the purpose of visiting Ukraine. RESIDENCE IN UKRAINIAN TERRITORY Until 2012, the nuances regarding the entry and residence of persons of foreign origin were regulated...

PSP license in Malta

Malta has experienced a substantial rise in the number of PSPs authorized there in recent years. As a result, the island has emerged as a top location for financial businesses. The specialists at Eternity Law International are eager to assist clients with obtaining a PSP license in Malta. Legal Basis Maltese law effectively supervises the...

Related posts

International commercial arbitration at the DIFC in UAE

International commercial arbitration at the DIFC in UAE is a contemporary and efficacious modality for settling commercial contentions. It combines innovative legal practices with established international protocols. This discourse elucidates the infrastructural underpinnings and procedural methodologies of arbitration at the DIFC. For further insights, please visit Eternity Law. The DIFC’s juridical ecosystem in the UAE...

Structuring of IT business transactions

As the forecasts that experts made regarding how IT business transactions would be carried out, they became flexible and mobile tools for clients and investors. The IT business itself offers many opportunities for entrepreneurs. In particular, these are: the ability to serve customers completely remotely, that is, the location of the client does not matter;...

Organization and possibilities of electronic money institution

Electronic money institution gives ability to proffer numerous types of financial range services in a wider manner compared to payment establishments operating with paying processing. If EMI got license in one of the EU states, that has a membership in the Union, it opens the way to offer services in rest of the European Union...

Regulatory organization FINMA in Switzerland

The Swiss Financial Markets Supervision Authority (FINMA) is a government agency, a Swiss regulator, which is one of the most reliable in the world, since the requirements of the regulator are very strict. Its activities are focused on financial regulation, namely: protection against the creation of corruption schemes for money laundering, supervision of banks, insurance...

Commercial lawyer

The business process of an enterprise is often associated with disagreements between counterparties, which results in litigation. Most often, such disputes connected with the economic, tax disputes and violations of obligations of the parties under agreements. Eternity Law International attorneys will help you to resolve disputes out of court or achieve an objective result in...

Registration of IT-business

5 most suitable countries Registration of IT-business and new technologies – this is not necessarily America and its Silicon Valley. There are other countries in the world with very attractive business conditions. The main selection criteria are: registration availability; ease of doing business; optimal conditions for tax legislation; high quality of life. Consider the most...

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Ready-made companies for sale

Companies with a bank account around the world

Banks for sale

Established Banks for sale

Ready-made licenses for sale

Forex, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Licensing

Forex licenses, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Offshore company registration

Expert advice on the acquisition of an offshore company

Open a bank account

Open bank accounts in more than 120 banks around the world
Fill the blank: