In a recent meeting with a client, whose business is the trading of tires and automobile spare parts – (both wholesale and retail), I understood that the client had operations in Europe, the Middle East and Africa. These operations were managed by independent legal entities and had no relationship with each other other than sharing common property. After reviewing the scale of the operations, I explained to the client how he could create value in his business by forming a holding company. This holding company will be based in a tax-efficient jurisdiction and will hold the shares of entities based in Europe, the Middle East and Africa. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get the original essayThe objective of the holding company was to consolidate the value of the entire business operations and negotiate favorable banking facilities for the customer. Over time, the holding company's shares would be listed on the stock exchange and this could be the client's exit strategy. I was tasked with advising the jurisdiction of the holding company in one of the major financial centers such as New York, London or Singapore with justification. As the group's investments are scattered across different countries in Africa, Middle East and Europe, I had to study the parameters of each country such as, Conducive Business Environment, Bilateral Investment Protection Network (BIPA), Stable policies, national tax regulations, tax treaty network, banking, tax and non-tax considerations, costs involved in establishing and maintaining the holding company and other factors such as availability of service providers, qualified personnel and of the time zone. by analyzing the characteristics of the jurisdiction of the holding company, I understood that Singapore is better than the jurisdictions of New York and London in terms of tax treaty network, tax-free dividend flow, creation cost and maintenance of the holding company, etc. I had compared key parameters of holding company jurisdictions, summary of indicative costs of tax analysis, structure roadmap and indicative cash flows for various options, starting with profit before tax, applying the applicable tax rate, depending on the jurisdiction and the net distributable dividend on hand for the shareholder. After careful analysis After analysis, my advice to the client was to create a two-layer structure. A holding company in Mauritius for all entities in Africa and the Middle East and another holding company in the Netherlands for entities based in Europe and Lebanon. Above this, Apex Holding Company in Singapore with the Mauritian and Dutch companies as subsidiaries. Keep in mind: this is just a sample. Get a personalized document from our expert writers now. Get a Custom Trial To complete the process, I had included the migration procedure, migration steps and roadmap with indicative cost.