Holding Registration
Holding Registration in the UK BUSINESS IN UK Business Legal Advice Business Setup Holding Registration LTD Formalities Agreements Employee Handbook Foreign Employees Business Sale / Purchase Holding Registration in the UK A holding company is a structure where the parent company owns shares in its subsidiaries. This setup is not only about business security but, above all, about tax efficiency and investment benefits. That’s why it is widely used in the UK – especially in real estate and by entrepreneurs running multiple projects at the same time. Why Choose a Holding Company? Dividend Tax Exemption Dividends paid between UK companies are fully exempt from Corporation Tax. In practice, this means there is no income tax on dividends within the group, where normal rates range from 8.75% up to 39.35%. Example: A subsidiary makes £100,000 profit. Instead of paying up to £39,350 in tax on dividends, the entire profit can be distributed to the parent company tax-free. Substantial Shareholding Exemption (SSE) A special relief that allows profit from selling shares in a subsidiary to be completely exempt from Corporation Tax and Capital Gains Tax. Conditions: the parent company must hold at least 10% of shares continuously for 12 months, and the subsidiary must be an active trading business. Example: A holding sells a subsidiary for £500,000. Normally, 25% Corporation Tax = £125,000. With SSE = £0 (saving £125,000). Group Relief – Loss Offset Profits in one company can sometimes be offset against losses in another. An additional tool for tax optimisation. Reinvestment Without Tax Profits can be transferred up to the parent company and reinvested into another subsidiary without extra tax costs. Asset Protection Liabilities of one subsidiary do not affect the others. Crucial when making large investments in property or operations. Holding in Real Estate ✔ Each property can be kept in a separate subsidiary – easier to sell individual projects.✔ Rental income is passed to the parent company without dividend tax.✔ Sale of a property-holding subsidiary – exempt from 25% tax under SSE.✔ Succession planning: easier and more tax-efficient to transfer shares than the property itself. Shareholders’ Agreement – Extra Protection If there is more than one shareholder, a Shareholders’ Agreement is essential. It regulates: dividend distribution, rules for share transfers, pre-emption rights, protection of minority shareholders. Standard preparation fee: £260.For holding packages – included at no extra cost. Holding in Trading Activities ✔ Sale of a business (e.g. online shop, service line) through disposal of a subsidiary – often fully tax-free under SSE.✔ Intellectual property and trademarks can sit with the parent, while operations run in subsidiaries.✔ Easier to build and grow several independent projects within one group. Our Offer – Holding Registration We handle everything for you, including: Registration of all LTD companies (parent + subsidiaries), Corporation Tax, VAT & PAYE setup, ICO registration, Shareholders’ Agreement (normally £260, included free). Pricing – Formation START Package – £4201 parent + 1 subsidiary STANDARD Package – £6101 parent + 2 subsidiaries PREMIUM Package – £7901 parent + 3 subsidiaries Additional Services for Holding Structures ✔ Tailored extras (e.g. when hiring staff or running websites).✔ Holding packages include minimum 20% discount. The prices listed below represent minimum fees (“from”). The final fee is determined individually following an analysis of the holding structure, the number of companies, the nature of the business activities, the volume of documentation, and the scope of tax and payroll services required. Companies engaged in international activities, e-commerce, holding investment properties, external financing, related-party transactions, or involving multiple directors are subject to individual pricing, regardless of the selected package. SERVICE + UNIT PRICE 2 COMPANIES 3 COMPANIES 4 COMPANIES UK GDPR – website documentation (£490 each) £600 (instead of £980) £700 (instead of £1,470) £760 (instead of £1,960) UK GDPR – full documentation (£890 each) £990 (instead of £1,780) £1,100 (instead of £2,670) £1,180 (instead of £3,560) Employment documentation (£490 each) £580 (instead of £980) £670 (instead of £1,470) £760 (instead of £1,960) Accounting for Holding Companies – With Discounts ✔️ Full bookkeeping service (bookkeeping, CT600, Annual Accounts, Confirmation Statement)✔️ Tax return (Self Assessment) for one director✔️ VAT returns✔️ Payroll service✔️ Mobile app + invoicing software A unique set of 6 reports (Profit & Loss, Balance Sheet, Dividend Report, Expense Breakdown, VAT Summary, CIT Forecast), that give you a true picture of your company and help you plan growth, dividends and taxes with confidence. 👉 Read more here SERVICE + UNIT PRICE 2 COMPANIES 3 COMPANIES 4 COMPANIES Bookkeeping (up to 20 docs/month – £120 each) £200 (instead of £240) £270 (instead of £360) £360 (instead of £480) VAT returns (£70 each) from £110 (instead of £140) from £160 (instead of £210) from £220 (instead of £280) Payroll (1-2 employees – £30) £40 (instead of £60) £60 (instead of £90) £90 (instead of £120)