Company and PICs
What is a Company
A company is a separate legal entity from its owners (called shareholders). This means:
For wealth planning purposes, shareholders are typically the beneficial owners, while the company legally holds the assets. Importantly, shareholders' liability is limited to the amount they invest (their share capital), helping protect personal wealth.
- It can own property, enter contracts, and hold assets in its own name.
- It has its own legal liabilities, distinct from the personal liabilities of its shareholders.
- It continues to exist even if the shareholders change or pass away ensuring continuity.
For wealth planning purposes, shareholders are typically the beneficial owners, while the company legally holds the assets. Importantly, shareholders' liability is limited to the amount they invest (their share capital), helping protect personal wealth.
Key Parties In A Organisation
Why Make an insurance nomination
Why Use a Company for Wealth Planning
1. Privacy
– Shareholders can maintain confidentiality over asset ownership.
2. Asset Protection
– Separates personal wealth from business or investment risks.
3. Real Estate Holding
– Ideal for holding single high-value assets like property, allowing easier management, transfer, and tax control.
4. Estate Planing
– Helps manage succession and inheritance efficiently, especially in cross-border situations.
5. Tax Efficiency
- Facilitates smoother and potentially more tax-efficient transfer of ownership, especially in cross-border situations.
6. Jurisdictional Flexibility
- Useful in countries where trusts or foundations are not legally recognised companies offer a viable alternative structure.