Setting Up a Holding Company

Advantages of holding company:

Having assets in a holding company, rather than an operating company, helps keep them safe from creditors just in case unforeseen circumstances arise. As a business owner, you can take risks through the operating company, rather than exposing the holding company, because the holding company doesn’t perform any transactions. You can move cash from an operating company to a holding company on a tax-free basis.

Asset protection from the creditors

Optimal way to Inter-company dividend transfer (usually tax free)

It basically provides an extra layer of protection

It's an investment vehicle if you want to expand your business

Optimal way to do income splitting and tax saving