26.04.2011
When you need a company to fulfill specific or temporary objectives, you can use special purpose vehicle (SPV). SPV-type of companies are typically used by companies to isolate the firm from financial risk.
Reasons for ordering a SPV company from rj companies:
- Differentiation of business plans: SPVs are often used to adjust different business plans in one group.
- Tax optimization: SPVs create optimum tax structures.
- Limitation of risks: Companies use SPVs to separate a high-risk project from the parent company and allow other investors to take a share of the risk.
- Asset transfer: Many types of permits required to operate certain assets (such as power plants) are either non-transferable or difficult to transfer. By having the SPV own the asset and all the permits, the SPV can be sold as a self-contained package, rather than attempting to assign the numerous permits to other company.
- Property investing: Different countries have different tax rates for capital gains and gains from property sales. For tax reasons, it is preferable if each property will be owned by a separate company.
