The Pros and Cons of Having a Holding Company

If you have a holding company which sells the shares, as I've said, it won't pay any tax. But then when you extract those funds, you're going to pay tax at whatever your rate of income taxes on dividends or bonuses. There are some other benefits to having a holding company. A subsidiary can pay dividends up to that holding company free of tax. You can usually move assets around a group of companies tax-free. So there is lots to consider and it just depends on the personal circumstances.