Holding Companies & Subsidiaries
Holding companies own and control one or more subsidiary companies, which operate as separate legal entities while remaining part of the same corporate group.
Holding company
A business structure used to own and control one or more other companies, known as subsidiaries. Instead of carrying out day-to-day trading itself, the holding company typically exists to manage ownership, assets, and overall group structure.
Subsidiary company
Operates as a separate legal entity but is owned or controlled by the holding company, allowing each business to trade independently while remaining part of the same group.
How are they formed?
- A holding company is simply a standard company, usually owned by an individual or group of people.
- When forming a subsidiary, the holding company is set up as the shareholder, typically owning more than 50% (often 100%) of the shares.
💡Best suited for: Business owners managing multiple companies or assets who want to centralise ownership while keeping legal risk and trading activities separate.
💡Holding Company Formation: To incorporate a holding company, simply select any of our company formation packages.
⚠️Subsidiary Company Formation: Due to compliance complexities, 1st Formations does not assist with the formation of subsidiary companies.
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