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Thread: Holding Company as 50% partner

  1. #11
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    This is not entirely true, the shareholding of your company will form part of your estate when you die and may not 'last forever' as an executor will step into your shoes and distribute the asset to your heirs.
    That is not 100% correct The estate will own assets comprising the shares; not the assets of the company. So the company and it's assets live on.....

  2. #12
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    Quote Originally Posted by btkeays View Post
    Hi HR Solutions

    Thank you for your response.... I have been unsure of whether I should register a holding company or a open up a trust to transfer my shares to. I am almost certainly going to start another separate company down the line and I am therefore leaning towards a holding company. I suppose there are many ways to go about it and I am very unsure of which would serve me better, i.e. the pro's and con's of each.

    The only reason I would prefer registering a holding company is that my shareholding in the said company would then last forever until the company becomes deregistered, or will the same stand for a trust?

    Apologies for sounding ignorant but I am learning as I go and any advise is valuable to me.
    Hi Btkeays. My own father just passed away so my mood was less than helpful.

    There are, when referring to profit companies, 3 types. Cancel out state owned. That leaves 2 type. These are public companies and private companies. We can ignore public companies, so that leaves only private companies.

    A private company can be owned by a natural person or a juristic person.

    You stated at the outset that you owned 50% and your "partner", another company, owned the other 50% and that that company was listed as as the "holding company". Normally, a company needs to hold 50%+ to be a holding company. I say normally because, as always, it is not that simple. A company can hold substantially less than 50% but might control the board, via the MOI or via a Shareholders Agreement. In such instances the reference may well be correct.

    You cannot register a Holding Company. There is no such thing when it comes to registration. Being a holding company is simply a commercial concept that arises from who controls the held company, whether by shares or by agreement or by MOI.

    There are no other considerations.
    Last edited by Andromeda; 15-Nov-16 at 07:06 PM. Reason: Typo

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    What do u mean their are no other "considerations" ???

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    Quote Originally Posted by HR Solutions View Post
    What do u mean their are no other "considerations" ???
    When you register a profit private company, it is just that. There are no other considerations such as "holdings company". It is simply a private company.

    And by the way, in compliance with IFRS, the ultimate holding company as well as the identity of the shareholders, are required to be disclosed in the AFS.

  5. #15
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    Quote Originally Posted by Andromeda View Post
    And by the way, in compliance with IFRS, the ultimate holding company as well as the identity of the shareholders, are required to be disclosed in the AFS.
    All shareholders or only those above a certain %?

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    A holding company is one that owns at least 50% of the companies companies’ stock. It is a company that doesn’t trade but only has one purpose which is to own shares in other companies.

    I would still stick to a Trust

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