Intellectual Property Holding Company

Intellectual assets are the most valuable class of business assets. They make up 80% of your business' value. Tangible assets can be replaced if lost. But the repercussions of intellectual assets lost stretch far and wide whatever the size of your enterprise.

Every enterprise should consider the benefits of setting up an Intellectual Property Holding Company. In essence, this company owns all the intellectual assets created by your business.

Some benefits of establishing an Intellectual Property Holding Company include:

  1. Clarity of the strength, value and ownership of the IP.
  2. Internal royalties result in greater visibility of the true economic performance of operating companies and improve earnings streams from external licenses.
  3. More effective and efficient IP protection.
  4. Intellectual Property is ring fenced against operational risks.
  5. Migration of income to a tax efficient jurisdiction.
  6. Managing withholding tax exposure.
  7. Income characterisation – Capital Vs. Revenue
  8. May assist in exit planning.

Our services include:

  • Advise on the suitability of an Intellectual Property Holding Company for your business.
  • Business model development for the Intellectual Property Holding Company.
  • Advise on transfer pricing.
  • Advise on Withholding tax.
  • Advise on Writing Down Allowance.