SSS · Transaction Advisory

What does moving to a holding structure gain for my company?

A holding structure separates different businesses into different legal entities, which buys risk isolation, flexibility in how the group grows, and an easier route to bringing in new share…

Updated · July 20261 min readCategory · Transaction Advisory
Short answer

A holding structure separates different businesses into different legal entities, which buys risk isolation, flexibility in how the group grows, and an easier route to bringing in new shareholders or investors.On the tax side, where the conditions are met, the participation exemption in Article 5 of the Corporate Tax Law (No. 5520) can make moving profit wi…

A holding structure separates different businesses into different legal entities, which buys risk isolation, flexibility in how the group grows, and an easier route to bringing in new shareholders or investors.

On the tax side, where the conditions are met, the participation exemption in Article 5 of the Corporate Tax Law (No. 5520) can make moving profit within the group more efficient — that is the specific advantage, rather than a general one. Against it sits the cost: extra accounting, audit and management overhead, and a heavier compliance burden. A holding is not right for every company. We analyse whether one would genuinely create value at your scale, given how many separate businesses you run and what you are aiming at over the medium term, and design the transition in stages so that the tax position and business continuity are both protected.

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This content is for general information only and does not constitute legal advice. Please contact our team for an assessment of your specific circumstances.

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