Many thanks for your kind praise, James. We do try!

Thanks so much for the positive feedback! Congratulations on your business - what is it you'll be doing with it?

@@1stformations The idea started from the principle of protecting family capital, a lower income tax rate. I gave that idea to my family. But now I will invest in the purchase of new assets such as land, real estate and shares in other companies as said in your video. I don't know how it works in England, but in Brazil, income taxes are lower if they are in the name of companies than in the name of individuals. I pay less taxes from our income. Got it ?

That sounds interesing! Are there any topics that you would like us to cover in future videos?

@@1stformations I would like to hear about opening business in England and its taxes. And income taxes for companies and individuals, please. It would be interesting to me because I wanna join the English entrepreneurship marketplace someday

I'm sure we can sort a video out for you! Have you watched any of our other content?

Thanks Big Mizzle - we're pleased you found this video insightful.

Thanks for your feedback Vaw. We will look into doing this for you going forward. Is there anything in particular you were struggling to read on the board?

No problem at all Matt- we are glad that you found this video useful.

Thank you for your kind comment, Agostino.

Thanks John - we feel this video is very valuable for anyone who finds themselves with a number of limited companies under their control.

Thank you! We are pleased you liked the video. A holding company must prepare and file group accounts if 2 of the following 3 conditions are met: The aggregate turnover of all companies in the group is more than £10.2 million The aggregate balance sheet total is more £5.1 million The aggregate average number of employees is more than 50 However, tax is paid by the subsidiaries. Does this help you?

Thank you for your comment. In general terms, the dividend payments from the subsidiary to the holding company that are indeed tax free. There aren't usually deductions for dividends from the holding company to its shareholders. Substantial Shareholder Exemption - to clarify, shares must be owned for 12 consecutive months inside the two year period to be eligible for capital gains exemption. So long as the holding company remains operating only within the basic functions as discussed in the video (acquisition of shares, receiving dividends from shareholdings, etc.), it is usually not liable for VAT Due to nature of the transaction, we would always suggest getting professional accounting advice before undertaking it. Do you have any other questions on this subject?

Many thanks for your kind praise, Sara. If there are any other topics you would like us to cover, just leave a comment and we'll see what we can do.

Glad it was helpful! Have you learnt anything new?

Thank you for your kind enquiry. Non-UK residents are able to use any of our packages to form a UK limited company. Generally speaking, all non-UK residents require a package containing use of our registered office address, as they are unable to fulfil their legally requirements for their registered office without a UK address. However, our Non-Residents Package is specially designed to provide all the services which in our experience, most non-UK residents find they need for the successful running of their business. You can see what is included in our Non-Residents Package here: www.1stformations.co.uk/compare-packages/#non-residents I trust this information is of use to you. Kind regards, John Carpenter 1st Formations

Thanks for your question! Generally speaking, the holding company will create no revenue, unless the holding revenue generates revenue due to its own activities. The revenue of its subsidiaries will be the revenue of those subsidiaries, but can be shown in a consolidated set of accounts for the group, which can be shown to outside investors etc. Does that help you?

Thanks for your comment! The creation of a holding company and group structure for the purposes of tax efficiency is common; however, it’s certainly not the only reason for creating one. Another example might be for a re-organisation to simplify a business’ structure. As the creation of a holding company could help make it easier for investors to be brought on, we don’t think it would be unreasonable for someone to think there might be an exit strategy involved. Having said that, because each scenario is different, no firm conclusions could be drawn. Do you have any other information which leads you to believe that the holding company is for tax efficiency or part of an exit strategy?

@@1stformations 5050 really. The company been small and now over the last few years. New ceo and accountant. Lots of tax schemes brought in, salary sacrafice. Work and environment grants. Having in house accountancy and finance controller. Plans to x2 x3 staff, sudden widescale refurbishments when before they wouldnt dream of spending money. Both older directors deciding to step back to more chairman roles. It wouldnt suprise me for tax reasons as the new account was surprised they werent being tax efficient. Its a classic 1980s little company with 70 bosses that now wants to become small to medium corp 100 staff from 30. More just interesting if having a HC makes it more attractive to be bought out or easier for investors to buy in? Theres a drive now to be as profitable and tax effient as possible.

Thank you, Mohammed. We are pleased you enjoyed it! To answer your question, you will set up your holding company in the same way as a normal LTD company. However, you have the option to add 'Holdings' at the end of the company name to distinguish that it is a holding company. To then assign the holding company to its own subsidiary company, when you form the subsidiary company, you will add a corporate shareholder and this will be your holding company. This will then mean that your holding company owns your subsidiary company, as it will be the shareholder. More information can be found via this blog post we made www.1stformations.co.uk/blog/what-is-a-holding-company/ - Please reach out to us if you would like us to help form your holding company!

@@1stformations thank you so much for this really in-depth reply! Really appreciate it! That makes sense so for example if I have... “A Holdings LTD” (which for example I would assign 100 shares to myself as the shareholding) Then I register another business (a subsidiary) called “example LTD” and instead of the normal process of having a person as the shareholder I’d assign 100 shares to the holding company and I can repeat this process for any other subsidiaries. Would I need to assign a company secretary to these subsidiaries when it’s solely owned by the holding company. Do I need to include “holdings” or could I have “A Group LTD” instead or do I need to make it clear it’s a holding company? Would you say this is the best way to set up companies that are similar and owned by the same person to protect assets owned by the individuals that own the holding company

@@MrFSD You are very welcome! That's exactly correct, instead of adding a human shareholder (person), you will assign a corporate officer, which will be your holding company. You do not have to add holdings or group in the name however, many people do, to make a clear distinction. In regard to secretaries, we would recommend getting a secretary to keep all your statutory books intact. 1st Formations can act as your company secretary to help with this. For more information, please feel free to email us. That's info@1stformations.co.uk and one of our agents will be more than happy to answer all your queries and get your holding company up and running.

@@1stformations thank you for clearing this up for me, makes a lot more sense now. I appreciate it. I will definitely be in touch if I require further assistance Thanks again!

@@MrFSD You are very welcome, Mohammed. We look forward to hearing from you.

Thanks Polina - glad you liked it!

Thanks for your comment, Jeff. People can indeed form their company for themselves for £12 with Companies House if they wish.