{"id":3111,"date":"2024-02-01T13:40:56","date_gmt":"2024-02-01T13:40:56","guid":{"rendered":"https:\/\/aelmarkhams.co.uk\/?p=3111"},"modified":"2024-02-02T10:21:10","modified_gmt":"2024-02-02T10:21:10","slug":"unveiling-the-world-of-holding-companies-a-comprehensive-guide","status":"publish","type":"post","link":"https:\/\/aelmarkhams.co.uk\/unveiling-the-world-of-holding-companies-a-comprehensive-guide\/","title":{"rendered":"Unveiling the World of Holding Companies: A Comprehensive Guide"},"content":{"rendered":"

Introduction:<\/span><\/p>\n

Many businesses are born with the aim of offering specific products or bespoke services. However, there’s another type of company that exists solely to own or invest in other businesses, known as a ‘holding’ company. Contrary to common perception, holding companies aren’t exclusive to massive international organisations. This blog explores the intricacies of holding companies, how they operate, and the process of creating them, applicable to businesses of all sizes.<\/span><\/p>\n

What is a holding company?<\/span><\/p>\n

A holding company, in most cases, doesn’t engage in manufacturing, selling goods, or providing services. Instead, it is created to ‘hold’ assets such as equipment, machinery, property, trademarks, or copyrights. Often referred to as a ‘parent’ company when it owns 50% or more of another business (subsidiary), holding companies play a crucial role in the corporate landscape.<\/span><\/p>\n

What are subsidiaries?<\/span><\/p>\n

A subsidiary company is a business owned and controlled by another company, meeting specific criteria outlined in the Companies Act 2006. To qualify as a subsidiary, the holding company must be a member of the subsidiary, own more than 50% of the voting rights, have the right to appoint and remove the majority of the board of directors, and solely control a majority of the voting rights.<\/span><\/p>\n

Should I set up a holding company?<\/span><\/p>\n

The decision to establish a holding company involves weighing the advantages and disadvantages based on your unique circumstances. Here are some key considerations and uses:<\/span><\/p>\n

Buying, Selling, or Creating Other Companies:<\/span><\/p>\n