Offshore holding company vs Offshore trading company?????

[new-to-offshore]

Why is it that a Offshore holding company is different from a offshore trading company?


I don't understand these terms please help:conf:

 

[orangeye]

Very easy, there are no differences. It is the business activity in the company that will make it a Holding company or a trading company! Let's say you registered XX Company in Cyprus or wherever, and you decided after one year with no or only little activity that you will stop trading but keep the company to just have shares of other companies there or to hold assets which before were personal then it would turn into a Holding company.

 

[orangeye]

I understand correct that this can be changed at any time and is not depending on the activity of the company?

 

[JohnLocke]

I understand correct that this can be changed at any time and is not depending on the activity of the company?

Well, if you started trading lot's of services or gods, I would say it will be difficult to tell anyone that this is a holding company, you will want to stop trading with the company and change the business description of the company to be an holding. However, at the end of the day it don't make's any differences and can be done at any time depending on the "real" activity of the company.