Holding companies are a special kind of companies, in the way that they own stocks in others, but they do not interfere directly with their operations.
The holding company
is a business that is charged with owning other companies which are called subsidiaries. The holding company
’s board of directors usually controls the other companies. In case you want to open a holding company in Slovakia
, you can ask our experts in company formation
Various aspects of a Slovak holding company
A holding company in Slovakia is allowed to be registered as:
If a legal structure is 100% owned by the holding company
, then it becomes a wholly owned subsidiary. Furthermore, a big corporation might decide on structuring itself as a holding company
with many subsidiaries
for different purposes: one can own its trademarks; another one can own its real estates and another can operate each franchise. In this way, every subsidiary has limited legal as well as financial liability. This limited liability also applies to the holding company itself.
Advantages of opening a Slovak holding company
There are many advantages when forming a holding company in Slovakia and some of the most important benefits are the following:
Tax exemption for dividend income (if the profits are being paid to one of the shareholders, a supervising member, or a member of the executive body).
There is no restriction to the nationality of the Slovak companies’ owners.
The holding company is protected from the losses of its subsidiaries and it cannot be pursued for remuneration.
Lower tax rates (if some parts of the business are strategically based in sectors with lower taxes).
Another advantage in a Slovak holding company formation is that the managers of the subsidiaries are responsible for their own operations and therefore the holding company is not liable for them.