What are reasons of acquiring a offshore company with a wholly..

[Safa]

What are reasons of acquiring a offshore company with a wholly owned subsidiary in the country of the target?


What are the financial reporting reasons i.e. the effect on an ultimate parent entity's financial statements if it acquired the target company in this way as opposed to acquiring the target offshore company itself?

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[SysOp]

I assume you are asking for why you should have a Holding Company with a subsidiary (Daughter Company) in the same offshore jurisdiction of your target, right? If so, well for asset protection and for tax reason when you for instant take out dividends from the subsidiary. Another reason could be if you have several partners or Investors it is far easier to have the shares split between this groups in a holding Company than in the subsidiary company.