A holding company is a registered business that owns investments in other companies that bear the name of operating companies. This type of company has a limited right of operating business activities, but the main benefits of a holding company are asset protection and tax reduction. When thinking of creating a holding company in the Czech Republic, you should consider asking for the help of Czech company incorporation experts as they have expertise in these matters.
Forms of a Czech holding company
Choosing the structure of your business is an important step and there are two main forms that a holding company can take in the Czech Republic, namely:
Most business owners, however, choose the LLC form as it provides better asset protection and helps them avoid losing the business assets if financial difficulties should arise.
The video below offers a short presentation on the registration of a Czech holding company:
Our company formation agents in the Czech Republic can help you establish a holding company on its territory and provide you with the relevant information you need.
Reasons for opening a Czech holding company
A large corporation can decide to make its structure in the form of a holding company with various subsidiaries because these can be used for different ends: owning its trademarks, operating each franchise, owning the holding company's real estate etc. Thus, every operating subsidiary has limited financial and legal liability. Furthermore, among other important benefits of establishing a holding company in the Czech Republic are the following:
• the nationality of the owners of the Czech companies bears no restriction;
• the holding company cannot be pursued for remuneration in case of losses of the subsidiaries and therefore it is protected from them;
• in case a strategic plan is made and the business has some parts based in lower taxes sectors, then the company will evidently have to pay lower taxes.
You can ask our team of company registration specialists for counsel and they will make sure that your best interests are being looked after in creating a holding company in the Czech Republic.
Aspects to consider when establishing a Czech holding company
If you wish to form a holding company, according to the Czech law, you will need to file registration by giving the articles of incorporation for your company and the name of it. This has to be done for both the holding company as well as for the subsidiaries.
Choosing to set up a holding company also implies analysing business, economic and operational demands. Feel free to contact our consultants in company incorporation and they will assist you with all the procedures that need to be completed.
The team from CzechCompanyIncorporation.com is very qualified and benefits from extensive expertise in this area. I would definitely recommend them to any entrepreneur decided to start his own business here.
Mihai Cuc, Partner of Enescu&Cuc; Law Firm www.romanianlawoffice.com