What is a holding company in Switzerland, and what are the differences between an operational and passive holding company?
In Switzerland, a holding company is a company that holds interests in other companies and has the purpose of managing and coordinating the activities of those companies. Holdings are often used to structure companies in a way that optimizes their organization, taxation, and risk management.
There are two types of holdings: operational and passive.
– An operational holding company is a holding company that has an operational activity in the management and coordination of its subsidiaries. It can offer management, marketing, accounting, human resources services, etc. It has an active role in the activities of its subsidiaries.
– A passive holding company, on the other hand, is a holding company that does not directly manage the subsidiaries it owns. It is mainly used to hold interests and assets, without having an operational activity.
Holdings can be used for various reasons, including asset protection, tax management optimization, risk management improvement, facilitation of asset transmission, or complex financial operations.
It is important to note that holdings have specific legal and tax regulations in Switzerland, and that the differences between operational and passive holdings can have significant implications for asset management, taxation, and liability. It is therefore recommended to consult a lawyer or tax advisor to assess the options that are most suitable for each situation.