A holding company is a business that owns the stock of other companies in a way that allows the holding company to control the decisions and policies of these companies. A holding company offers a certain advantage in that it is protected from losses. Thus, if one of the companies, where the holding company owning shares, goes bankrupt, the loss does not affect the holding company.

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Company incorporation by purpose: holding - Confidus Solutions
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Company incorporation by purpose: holding - Confidus Solutions

Holding companies can be efficiently used to hold assets and distribute corporate profits among subsidiaries. Holding corporate structures can be also used for tax planning purposes. Read more here.