Where investment income is considered passive income, a holding company will pay income taxes at the full corporate tax rate and is ineligible for the taxation benefits of a CCPC.  

It is a question of taxation: in France, taxes are very high for high incomes (almost 70%, yes I said 70%...).

So I guess this is basically the double taxation a C corp is subject even though we are talking about a foreign entity. 

Lots of moving parts here and a very complicated taxation scenario.  

Yes, I'm aware that 50k is not a huge investment by any means, but a ballpark figure to start with investing abroad.This initial investment will help me and my business partner establish a hands on 'feel' of offshore investment structure, taxation, financing and so on, alongside partnering with someone local.

Much of the information universal, but some of it has a distinct U.S.A. bias, particularly when it comes to finance, regulatory and taxation ... things are different here in Canada.  

So advice from attorney in business entity and "CPA" for the taxation right?

When you're in the business of dealing in options, you are in a different category than ma and pa doing a one time option deal, laws become applicable to dealers, such as RE licensing, SEC, Finance regulations, advertising, HUD regulations, accounting requirements and taxation as mentioned. 

The taxation is different, and you could end up paying twice.

Hello BP, I have this nagging thought in my head: will borrowing from one's 401k cause double taxation?