Holding Company
A holding company is a company that exercises controlling influence over other companies by holding shares in those companies. A holding company therefore generally does not have its own operating businesses. Instead, it serves as a parent company for subsidiaries and acts as an asset manager.
Holding companies may be established for various reasons. For example, they can serve to secure the influence of a family or management over a specific company. A holding company can also be beneficial for tax purposes.
In a holding structure, the subsidiaries are legally autonomous and independent of one another. This allows them to operate independently and pursue their own business objectives. At the same time, however, they benefit from the common parent company, which can provide support in areas such as financing or investment decisions.
Overall, establishing a holding company thus offers many advantages for businesses, particularly when it comes to optimizing business processes and resources.