Why holding companies and not other platforms or under my personal name
Under holding companies | With other platforms (i.e fintech or financial institutions) | Under personal name |
Your liability is limited to the amount of assets you own in the holding company. You cannot lose more than you put into the holdco | You cannot control liability exposure and are subjected to all the liabilities of the platform (i.e financial institution), which is risky if they use leverage | Your liability to contribute is endless and can lose more than you put in, especially if you are leveraged |
The holding company wholly-owned by you directly accounts for all assets bought and stored | The platform accounts for all assets bought on behalf of you on their balance sheet | You directly account for all assets bought and stored |
You enjoy zero capital gains and up to zero corporate taxes as a tax resident of Singapore | You are exposed to capital gains tax as a tax resident of your country | You are exposed to capital gains tax as a tax resident of your country |
You enjoy customized gold investment strategy, in discussion with your board, specific to your risk profile and financial appetite and ambition | You are subjected to the products offered by the platform, which are often limited in choices | You make your own investment decisions |
You enjoy the lowest acquisition premiums and make risk-free returns provided by your board, which offsets against management fees | You are subjected to higher premiums and management fees | You are subjected to higher premiums |
You see and claim the amount of assets you own when you sign off on financial statements every year | Platforms stake claim on your assets in the same moat as deposits held by banks | You keep your own record of assets ownerships |
Your holding company will never freeze assets from you | Platform may freeze assets at any time, especially if they want to limit withdrawals | You may have your personal assets frozen during criminal or bankruptcy proceedings |
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