Global IP holding companies

Intermediate holding companiesSINGAPORECYPRUSNETHERLANDSSWITZERLANDLUXEMBOURG
Our ranking in order of preference12345
Summary at a Glance
Best city/province for registration?SingaporeLimassolAmsterdamNidwaldenLuxembourg
Recommended type of business entity?LLCLLCLLCGmbHSARL
Standard corporate income tax rate?17%12.5%25%~12.5%28%
Tax rate on royalties and IP income?10%up to 2.55%9%6%
Resident director required?YesNo*YesYesYes
Access to the Madrid Protocols?YesYesYesYesYes
Global rank for IP protection?6/12841/1289/1285/1283/128
Our Client must travel?NoNoNoNoNo
Total engagement period?2 months2 months3 months2 months2 months
Standard engagement costs?US$10,530€9,535€15,440€20,650€19,170
Incorporation requirements
Registered address required?YesYesYesYesYes
Lease for office space required?NoNoNoNoNo
Corporate bank account required?YesYesYesYesYes
Suggested corporate bank account?DBSBank of CyprusABN AmroUBSRCB
Minimum number of directors?11111
Resident director(s) required?YesNo*YesYesYes
Minimum number of shareholders?11111
Minimum paid-up capital required?US$1€1€1€18,500€12,400
Allowed to issue preference shares?YesYesYesYesYes
Public register of shareholders & directors?YesYesYesYesYes
Tax and accounting considerations
Will the company be tax resident?YesYesYesYesYes
Standard corporate income rate?17%12.5%25%11.5-24.2%28%
License box scheme available?YesYes, IP boxYes, Innovation BoxYes, Nidwalden License BoxYes, Luxembourg License box
Can IP income be exempt from corporate tax under certain criteria?NoYesNoNoNo
Tax credit/incentives for R&D?YesYesYesYesYes
Tax on transfers of patents and other IP?NoNoNoNoNo
Standard withholding tax on dividends?0%0%15%35%15%
Does the entity have DTAA access?YesYesYesYesYes
Web link list of available DTAAs?HereHereHereHereHere
Special tax regime for holding companies?YesNoNoYesYes (SOPARFI and SPF)
Trading income allowed for holdings?NoYesYesYesNo
For Holding Company to enjoy exemptions, does it have to:
i) Have resident director in the country?YesMajority*YesYesYes
ii) Have a local staff?NoNoNoNoNo
Required % ownership for subsidiaries?20%At least 10%5%10%10%
Controlled Foreign Corporation (CFC) rules applicable?NoNoNo, except in this caseNoYes
Does the country have a tax haven list?NoYesYesNoNo
Compliance considerations
Annual tax return to be submitted?YesYesYesYesYes
Annual financial statements required?YesYesYesYesYes
Statutory audit required?NoYesNoNoNo
Must register for VAT?YesYesYesNoNo
Can do business and hire locals?YesYesYesYesYes
Will the country banks apply FATCA?YesYesYesYesYes
Will the country implement CRS?YesYesYesYesYes
Blacklisted tax haven jurisdiction?NoNoNoNoNo
Bank account characteristics
Healy Consultants' preferred bank?DBSBank of CyprusABN AmroUBSRCB
Do I travel to open the bank account?NoNoNoNoNo
Recommended minimum deposit?US$50,000€2,000€1,000€5,000€5,000
Multi-currency corporate bank account?YesYesYesYesYes
Corporate credit card?NoYesYesYesYes
Corporate ATM card available?YesYesNoYesYes
Bank rating by World Economic Forum?5/144126/14460/14420/14412/144
Ease of getting credit? (by WEF)?4/144109/14449/14428/1446/144
Quality of online banking?ExcellentExcellentExcellentExcellentGood
Logistics considerations
Availability of engineers and R&D staff?ExcellentExcellentExcellentExcellentAverage
Average monthly salary for R&D engineer?US$5,660€2,100€5,295€8,900€5,000
Universities included in Shanghai ranking?83None1280
Virtual office services available?YesYesYesYesYes
Allowed to make sales to foreign Clients?YesYesYesYesYes
Allowed to make sales to local Clients?YesYesYesYesYes
Local sales subject to tax?YesYesYesYesYes
Can the entity hire local staff?YesYesYesYesYes
Can the entity hire expatriate staff?YesYesYesYesYes
How long to secure a work permit?4 weeks3 months4 weeks3 months2 months
Personal tax for residents? (range)2%-20%0%-35%36-52%24%-45%0-40%

*Legally, no resident directors are mandatory in Cyprus, however to decrease probability of foreign authorities challenging the tax-residency status of Cyprus company, one will need to i) have majority directors based in Cyprus or ii) execute board resolutions in Cyprus

Contact us

For additional information on our corporate banking services, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Simon Guidecoq, directly:
client relationship officer - Simon