- 1. Where to locate a head office.
This requires deciding in which country a head office will be located. Sometimes the decision relates to what are called ‘intermediate holding companies’ instead.
The importance of the decision is determined by the fact that a company usually has to pay tax in the country in which it incorporated. So, choosing to locate a company in a high tax territory such as the USA (which has amongst the highest corporate tax rates in the world) can be expensive. However, quoted companies usually need to be incorporated in a major financial centre such as London, New York or Frankfurt. The result is that tax cannot be minimised in those locations.
Absolutely no one incorporates in London or Frankfurt. They are not legal jurisdictions in which one can incorporate. England and Wales perhaps, Germany maybe, but not London or Frankfurt.
Further, you do not have to be incorporated in England And Wales to be listed in London.
US quoted companies are, almost without exception, incorporated in Delaware, not New York.
It\’s not looking good for the accuracy here, is it?