Virtual holding companies are wholly-100% owned legal entities in safe and secure countries like Singapore. They usually own assets, such as financial assets like stocks and shares, intangible assets like IP, crypto or selling rights, Physical assets like inventory or real estate. The owners for such holding companies can be located anywhere in the world, hence they own the assets under the holding companies outright. The benefits for doing this are to capture tax-efficiencies and leverage the safe and transparent environments of Singapore.
Our holding companies are generally already-created for them, complete with all the bank accounts, compliance, governance, statutory appointments, accounting functions, so that the holding company is entirely legally compliant and a functioning business. What they (clients) do is simply to bring their assets into the holding company, then they enjoy the tax-efficiencies, safety, security etc that Singapore offers.
We function similarly to financial institutions or insurance companies, as we distribute our “holding company plans” through advisors like yourself, who own the relationships with your clients, and ensure they maintain their company plans for years to come. So your role is to keep them satisfied and happy, answer any queries and try to fulfil their financial and professional ambitions, supported by us. You work directly with the local resident director appointed to any holding companies we create, so each holding company can have different resident directors (>1) and you simply work with them to upsell to your clients.
In the same way as insurance companies, you are paid a percentage (up to 30%) of the premium that the clients pay us. Each premium amount is different as each client has different circumstances which we take into consideration, but generally the wealthier pay more premiums than the less wealthy. Note that the wealthy pay their premiums usually from the assets that generate a return under the holding company, so it’s not necessary out of pocket expenses for all.
Your fees also recur, as you are paid a similar rate on a yearly basis until they close the holding company or until you sell the rights to manage the holding companies to someone else.
Note that the rates are not small, as our premiums can be anywhere from USD 3,000 to USD 30,000 and even more on a yearly basis. So the more wealthy clients you have onboarded then the more fees you get. We also offer retainers for our best advisors so that is something to look forward to as well. Moreover there are upsell opportunities as your clients may move from lower plans to higher plans and hence your fees increase as well. So the sky’s the limit for you, there is no cap to fees you can make.
If you are interested in such a capacity to work with HNWIs in your country, then you would need to undergo a series of training, happening Tuesdays and Thursdays at 4pm SGT, for a month, about 8 sessions in total.