Archives for "H"

Holding Company

An asset-holding company with a virtual office in the State of Delaware with the intent to create enough contacts to a geographic location to give the state jurisdiction over the assets in Delaware to avoid taxes in other locations where a company is doing business.
2. Sometimes a holding company is merely a reference to a company that holds passive assets, without conducting other business activities. For example, this is used often to separate active businesses from passive activities. For example, a restaurant that uses a holding company to own the building and a corporation to conduct its going concern activity. This can provide tax and asset protection benefits, to bifurcate ownership in this way.

Hague Convention

A treaty signed by certain countries which simplifies the process of authenticating local documents for use in other countries. The state of incorporation can apostille certain documents directly without filing the documents with the national government. Non-signatory countries must authenticate through the U.S. Department of State and their local consulate in the United States. However, sometimes non-signatory countries accept the apostilled documents, even though they did not sign the treaty. This is sometimes the case in China, where most providences did not sign the Hague Convention, but may accept the apostilled documents, which can be obtained more quickly and cheaply than “legalized” documents.