Locating Holding Companies

Locating a holding company in a tax haven can be used to bring together investors from various countries who are investing in businesses that are in turn operating in numerous countries. This creates a single point through which all business operations and investors can be co-ordinated without the imposition of significant compliance costs or additional taxes.  

PepsiCo, is one of 500 multinational companies that have their holding company based in Denmark (which is a tax haven for holding companies). PepsiCo (headquartered in New York, US) has sales of US$63 billion, 269,000 employees, and operates in 195 countries. The company has a market capitalisation of US$160 billion and over 200,000 shareholders (including employees under the employee share plan).