At Forward Point Solutions, we work with entrepreneurs, investors, and family offices to design smart, tax-efficient, and compliant holding company structures tailored to their commercial, operational, and jurisdictional needs. If you’re considering a holding company — or reviewing an existing one — here’s what you need to know.
What Is a Holding Company?
A holding company is a legal entity that owns controlling interests in other companies (called subsidiaries), assets, or intellectual property. It doesn’t typically produce goods or services itself — its main function is to manage and oversee these investments or subsidiaries.
A holding company can be used to:
- Consolidate control across multiple businesses
- Centralize decision-making and strategy
- Protect assets and ring-fence liabilities
- Enable tax planning and intercompany efficiencies
- Support international expansion or investment
Whether for corporate structuring, inheritance planning, or M&A readiness, a well-designed holding company can serve as the backbone of your long-term growth strategy.
Key Elements of an Effective Holding Company Structure
The benefits of a holding company depend entirely on how well it's structured. Forward Point Solutions considers the following core elements when advising clients:
Jurisdiction Selection
Not all jurisdictions are created equal. We help clients choose between options like the UAE, Luxembourg, BVI, Switzerland, Cyprus, or the Netherlands depending on tax treaties, reputational strength, regulatory requirements, and exit strategy.
Corporate Governance
A holding company should have clear governance protocols — including director responsibilities, shareholder rights, and decision-making authority. This is especially important when dealing with multiple stakeholders or cross-border operations.
Ownership Structure
Holding companies can be owned by individuals, family trusts, or even private foundations. Structuring ownership correctly ensures smooth succession, tax efficiency, and control over voting rights or dividends.
Banking & Substance
Many jurisdictions now require real substance — meaning real decision-making, record-keeping, and financial activity must take place in the company’s jurisdiction. We assist with banking, directors, offices, and economic substance compliance.
Intercompany Agreements
Loan agreements, IP licensing, service agreements, and dividend flows between the holding company and its subsidiaries must be clearly documented and priced at arm’s length, especially in tax-sensitive setups.
Common Use Cases for Holding Companies
Holding companies aren’t just for multinational giants — they’re used by:
- Entrepreneurs who own multiple operating companies
- Investors managing portfolios of startups, real estate, or private equity
- Family offices seeking centralized control over international assets
- Founders preparing for acquisitions, joint ventures, or exits
- Wealth planners optimizing for succession, privacy, and asset protection
No matter the use case, the underlying goals are often the same: efficiency, protection, and control.
Why the Right Structure Matters
An improperly structured holding company can create legal risk, tax exposure, or unnecessary administrative burden. At Forward Point Solutions, we go beyond incorporation — we build structures that stand up to scrutiny and scale with your ambitions.
Whether you’re just starting out or restructuring a complex portfolio, our team ensures your holding company works for you, not against you.
Thinking of Setting Up a Holding Company?
Let’s structure it the right way. Book a consultation with Forward Point Solutions today and gain clarity on the best jurisdiction, governance model, and strategy for your holding company.