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Business Expansion Business Name Registration Corporate Affairs Commission Incorporation Norebase Resources

How to set up a Holding company; U.S HoldCo & African subsidiary on Norebase

In the course of registering a business, especially when you are expanding to another country, you would no doubt have come across the words “Holding company” and “Subsidiaries” during your research.

However, before we get into how you can register a Holding company in the U.S, let’s talk you through what these terms mean.

What is a Holding Company? 

A holding company (HoldCo) is any business entity that owns the controlling shares in another company or companies and influences decision-making in these entities. 

Usually, a holding company does not conduct any operational activities; Rather, they hold and control assets of other companies whose equity they have acquired.

In addition, this type of company will sometimes act as a financial organisation that lends, borrows, and invests in the operations of the entities they own without trading goods or services themselves.

A good example of a HoldCo in Nigeria is Flour Mills of Nigeria, with over five subsidiaries spanning major sectors like Food, Su, Agro-allied, Port Operations and Logistics, Packaging and Real Estate.

Among other benefits, a holding company helps reduce risks. In essence, if one company fails, the other businesses are protected. Also, subsidiaries of a Holdco get access to tax and lending benefits. 

What is a Subsidiary?

A subsidiary is a business that belongs to a parent company or a holding company. These holding companies can claim ownership of a subsidiary as they may own more than half its stocks. If a holding company possesses 100% of these stocks, the entity can be said to be a wholly-owned subsidiary.

Subsidiaries have independent operations reflected in their taxes, liabilities, and governance. That is to say that these businesses are legally distinct and separate from the holding company. 

Golden Pasta, Golden Shipping Co, Niger Mills, and Kaboji Farms are only but a few subsidiaries of Flour Mills of Nigeria.

As the owner of a new business or an already-existing one, starting a holding company is a straightforward process with Norebase. Here’s how you can set up a holding company in the U.S if you fall into any of these categories.

How to Set up a Holding Company in the U.S

I. When you have an existing African company only

If you already have an African company you want to turn into a subsidiary, simply go to www.norebase.com and register the U.S company. When the registration is completed, the shareholders of the African subsidiary will be required to either transfer or surrender and reallot their shares to the US HoldCo.

II. When you have no existing company

Firstly, register a HoldCo in the U.S by simply following these steps. If you then want to register an African subsidiary, simply start the registration process on norebase.com, select your country and fill in the name of your already registered U.S Holdco as the company owner. 

III. When you have a U.S company only

The process is half-done if you already have a registered company in the U.S. You simply have to register your company in any African country on norebase.com and fill in the name of the U.S Company as the owner of the African entity and assign shares as needed.

Whether you want to register a U.S HoldCo or a subsidiary company in any African country, we have made the process as easy as the click of a button on norebase.com

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Read: Benefits of registering in the U.S 

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Business Expansion Incorporation Norebase Resources

Business structures and what you need to know about them

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Business Expansion Incorporation Norebase Resources

Expanding to a new country? Here are four things to consider

If you are reading this, you’re probably thinking of expanding your company to a new country. However, the big move into a new country comes with its own complexities right from the get-go. 

We have taken these learnings and simplified the process of expanding into any African country and U.S (Delaware) on our platform, but before you begin, here are 4 factors that will help you make the right decision.

Factors to consider when expanding your business

Market Research

An essential first step is for you to conduct market research; this involves gathering information on the viability of your business or product within a particular pool of customers. 

This will give you a good understanding of how prospective customers will interact with your products using previous data. But, of course, you don’t want to create a solution for a non-existent problem. 

Your research should answer questions like: “Who is my target audience?” “Who can afford my services/products?”, “How should I price my product?”, “How large is the market for my service?” and “Who are my competitors”.

Having answers to these questions will steer you towards data-driven decisions. 

Language and Culture

With about 7,151 languages spoken in the world today and 2,000+ in Africa alone, there is a need to familiarise yourself with the culture in each region and individual country. 

Different regions come with a difference in culture, which influences how people interact with products and services. This raises some concerns for businesses planning to start in a new market – “How will we speak with our customers?”, “How will they understand us?” etc.

This can hinder your choice of a target country; however, it should not deter you from starting your business in a country where you do not speak the local language. An easy fix is to have at least one member of your team who has intermediate fluency.

Regulatory barriers

Every country has its laws and regulations that govern interactions, and the business sphere is not left out. For example, some countries have prohibitive rules towards foreign investment, while others strongly encourage foreigners to start businesses.

Before deciding on what country to expand to, you should pay attention to what laws govern your industry and how those may affect you with the help of a local legal advisor. 

Government Stability

Political upheaval directly impacts the economy of a country. Many countries have had their fair share of political turmoil with lasting impacts such as increased debt, high unemployment rate, and volatile exchange rates.

To make the right choice, your target country should have some (or all) of these: low inflation, stable exchange rates, low unemployment and a growing middle class.

The best way to know more about the internal situation of your target country is to follow local news and thought leaders who share unbiased viewpoints or subscribe to our newsletter to get updates on policies across Africa that may affect your business.

Ready to expand your Business?

Let’s show you the seamless way. With Norebase as your incorporation partner, whether you are launching or expanding your business to any African country or the U.S, the process is straightforward and quick.

Some African countries we can help you expand to include Ghana, Kenya, South Africa, Nigeria, Rwanda, Senegal, Cote D’Ivoire, Togo, Tanzania, Egypt, Burkina Faso and counting.

Start today at www.norebase.com.

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Read: Why you need to Incorporate your company 

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C-Corp Incorporation L.L.C Norebase Resources

Why you need to Incorporate your company

“It’s not just about ideas. It’s about making ideas happen.” — Scott Belsky

Every successful company today was once an idea. Of course, your brand or business also started as one, but the question is, “What distinguishes your idea from an established business?” 

It’s the sum of things you do to make it happen. 

One such is making your business legally recognized either by a business name registration or an incorporation process. 

Incorporation, in basic terms, is simply the legal process of turning your business into a company. But, first, let’s explore a few reasons why you should incorporate your business.

Why do you need to Incorporate?

Easy access to business loans capital.

When you incorporate, your credit worth increases to the point where it becomes easier to get loans from banks and other financial institutions. Hence, it kills the question, “Is your business legal/legit?”

Increased credibility with customers, competitors, and investors

A business is not truly a business until it has customers to serve, competitors to outperform, and investors to convince. One way to build credibility with these parties is moving your business from just an idea or a building to the papers and vice-versa, incorporating it. 

Ability to open and manage a business account 

The saying “your business is not your personal bank” speaks for itself. To live up to this saying, businesses require a business account. However, one cannot open and manage a business account without getting the documents that will only be available and valid after incorporation.

With the large volume of individuals looking to register their businesses, the process becomes a lot slower than you would necessarily want. The tons of paperwork, and in-person meetings, while keeping your business afloat is enough to stop the journey to incorporating even before it begins. 

But what if I told you that there was a faster way to incorporate your business? And we mean it when we say you can own a company with just a click when you get started at Norebase.

Watch this video to see how

Our incorporation processes are seamless and will let you incorporate a business before you have second thoughts. 

The best part? With Norebase, you have access to countries like Ghana, Kenya, South Africa, Nigeria, Rwanda, Senegal, Cote D’Ivoire, Togo, Tanzania, Egypt, Mauritius, Burkina Faso and the U.S (Delaware)

Start today at www.norebase.com.

To get updates on our latest features and policies that affect your business, subscribe to our newsletter here

Read: Benefits of registering in the U.S