Holding entity bank account

[enceladus]

So this might be a very basic question.

After reading plenty of material regarding asset protection, it seems that a holding entity (such as a trust or a foundation) owning 100% of a operating company is a sound strategy.

I have an offshore company owned by me as an individual. I do my online sales, and also use this company for investments in stocks, cryptocurrencies, etc.

If I created a holding company, should I open a second bank account for it as well? Should I move the investments unrelated to my core business there for a clean separation?

 

[diablo]

If you setup a holding Company you want to open an bank account for this entity otherwise it makes no sense. A Company (holding or not) without a bank account is most often useless and in this setup you plan it is for sure. You can simply use an EMI to start with if you don't know how much money will go through the account or you want to avoid the long time waiting and hassle for a real account opening.

 

[enceladus]

So ideally you need 3 accounts, one personal for salary/dividends, one for the operating company and one for the holding.

What is the legal form for transferring funds from the operating to the holding company?

 

[diablo]

Depends on where the holding and Trading company is located! for instant a Seychelles holding Company that owns 100% of the shares of a Cyprus Company can receive Money from the CYP corp tax free and has not to be taxed anywhere, the same goes the opposite! However, if you have a holding Company say in Sweden and your Trading is anywhere else, you can only take out dividende to the Swedish Company but you will get taxed in Sweden for this amount!

 

[enceladus]

Are you available for a consultation? Please PM me.

 

[JohnLocke]

enceladus said:
Are you available for a consultation? Please PM me.
Click to expand...

It's a commercial request which I won't allow here since it attract service providers and others to spam the thread!

If you want personal consultation or want to get in touch with some guys then upgrade your account to Mentor Group!

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[enceladus]

Sorry, had no idea.

 

[fshore]

It's not always required to have a bank account for a holding company, it depends on the specific situation. The company can own the other company without having a bank account. For dividends you could withdraw cash and then give and hold this money for the holding company, or pass it on from the holding company to yourself as dividends etc. You can also in some cases use your personal bank account as a nominee account for the holding company, it depends where you and the 2 companies are tax resident.