Is the presence of several companies in the structure of one business a myth or a necessity?

In today's globalized world, having one legal entity no longer guarantees effective business management, tax optimization, or asset protection.

In 2025, according to the European Business Association, more than 70% of medium and large enterprises in the EU use multi-structure approaches to doing business, combining companies in different jurisdictions to achieve strategic goals.

Is this really a necessity or just a complicated game of formalities? Let's find out together.

What types of companies exist in an international structure?

A modern business structure usually consists of several levels, each of which performs a separate function.

In the center — an operating company, that is, one that directly conducts business activities: concludes contracts, accepts payments from customers, and works with suppliers.

However, it is often impractical to leave profits in the operating company - it is the company that bears the main tax burden and legal risks, especially if it is registered in a country with a high tax rate.

To minimize tax burden, a holding company is added to the structure. It owns the operating company and receives dividends from it, usually without additional taxation if there is a tax treaty between the countries. Such companies are often located in Luxembourg, the Netherlands or the UAE.

A separate segment of the structure may be held by a company that owns intellectual property—software, trademarks, or patents. It licenses the operating company and receives royalties.

As a result, Part of the profit is “transferred” to a jurisdiction with preferential or zero taxation, for example, to Singapore or Ireland.

In addition, entrepreneurs are increasingly creating trusts or foundations — long-term capital preservation tools. In 2025, demand for trust structures increased by 30%, especially among small and medium-sized business owners who want to protect assets from claims, sanctions or unforeseen events.

Finally, a resident company in the owner's country of residence plays an important role. It is used to legalize income, receive management fees, or access tax benefits - such as the Non-Dom regime in Cyprus or the NHR program in Portugal.

How to choose the right company types and jurisdictions?

No country can offer everything at once: low tax burden, stable banking system, legal security, intellectual property protection and free access to international markets.

That is why it is necessary to combine jurisdictions — by locating different business functions in countries that are best suited for specific tasks.

For example, they choose the UAE or the Cayman Islands to accumulate profits, Poland or Estonia to conduct operations, and Switzerland or Malta to protect assets.

The "Prikhodko and Partners" team analyzes the client's tasks and selects the optimal countries, taking into account their tax regimes, types of activities, reputation, legal requirements, and banking history.

Requirements for the owner and director of the company

Regardless of jurisdiction, all companies must comply with UBO rules and due diligence.

In most countries, it is sufficient to have one director and one shareholder, who can be both natural persons and legal entities.

At the same time, some jurisdictions, such as Italy or Switzerland, require a local director or physical presence. Others, such as the UAE or Cyprus, provide benefits to non-residents, but require an official address and tax number. All these nuances are important to consider even at the stage of designing the structure.

Creation procedure and deadlines

1. Launching a multi-tier structure begins with legal modeling and calculating tax scenarios.
2. What happens next is company registration — this takes between two and eight weeks depending on the jurisdiction.
3. The longest stage is usually the stage of opening bank accounts: due to compliance procedures, the time frame can reach 2–3 months.
4. You should also register intellectual property rights, enter into licensing agreements, and prepare tax documentation.

On average, it takes 2 to 3 months to fully form a structure.

"Prikhodko and Partners"accompany the client at all stages, including banking compliance, licensing and IP registration.

Cost of setting up a structure in the EU

The cost of setting up a company depends on the country.

In 2025, company registration:

• in Estonia it costs from 1200 to 2000 euros;
• in Portugal - from 2,500 to 4,000 euros;
• in Spain - from 5,000 euros;
• Setting up a holding company in Luxembourg or Malta can cost 10,000 euros or more.

Annual maintenance, accounting support, and legal advice are added to the initial costs.

For example, maintaining a company in Estonia costs an average of 1,500 euros per year, while accounting support in Luxembourg costs up to 5,000 euros.

All these services are available in a turnkey format within the framework of the "Prikhodko and Partners" service.

The main difficulties in managing a holding company

Despite its many advantages, the holding structure requires careful management. The most common challenges are coordinating reporting across jurisdictions, complying with transfer pricing requirements, changing tax laws, and financial monitoring of transactions.

In addition, some banks tightened requirements for non-residents in 2025, making it more difficult to open accounts.

To avoid risks, it is necessary to work with proven partners and have a clearly defined management policy.

Our team helps with this - "Prikhodko and Partners" has a network of local accountants and lawyers in over 20 jurisdictions, which allows us to ensure control at every level of the structure.

Is there an alternative to a multi-level structure?

Yes, For a small business or startup, a full-fledged holding structure may be too expensive and difficult to administer.

In this case, an effective alternative is a simplified model - one company in a jurisdiction with a flexible tax regime (for example, Estonia, Cyprus or Bulgaria), which combines operational, ownership and management functions.

This approach reduces administration costs, but retains key advantages: tax optimization, legal status, the ability to open accounts and conduct international business.

How do we help?

The law firm "Prikhodko and Partners" provides comprehensive support in structuring international business.

We develop the optimal model for each client:

• we analyze business goals;
• we select jurisdictions;
• we calculate the tax burden;
• we support registration;
• opening accounts;
• preparation of contracts and accounting.

Multi-level structure — It's not a whim, it's a strategic tool. It allows you to control your finances, optimize your taxes, protect your assets, and grow your business globally. And if done correctly, it's completely legal.

We don't just create companies - we design the future of business.