A holding company can also be referred to as a legal entity that ends up owning the stock of other business entities. Such an entity is not responsible for the production of goods or services and instead takes an interest in holding the business assets. A holding company makes money in three possible ways, namely:
- Through profitability or dividend of shares
- Providing relevant services to the owned companies
- Buying and selling companies
Coming on towards the establishment process, a business investor holds the flexibility to operate different types of holding companies. In case if you are planning to invest in a holding company, knowing the different types will help you to understand it in a better way.
Types of Holding Company
When it comes to incorporating a holding company, one has got the following types to choose from.
1.Pure Holding Company
This type of holding company gets incorporated for the sole purpose of owning stock in other business entities. This stands as one of the core purposes of the entity, and it is not engaged in any other business process.
2.Mixed Holding Company
As the name suggests, such a holding company is not only involved in controlling the assets of a business firm but is also involved in the business operations of the firm.
3.Immediate Holding Company
An immediate holding company is already a controlled company by other business entities, despite the fact of being controlled, such a business entity that retains the stock of another company.
4.Intermediate Holding Company
When it comes to an intermediate holding company, it stands as a holding company for one business entity, and on the other hand, also acts as a subsidiary for a more substantial business firm.
How to Start a Holding Company?
The process of incorporating a holding company turns out to be more speedy and hassle-free with the expert’s advice. At the same time, it helps the business owners to utilize their time in the best possible way. The steps that are required to be initiated by the business owner are:
- Selecting a professional business consultant: Experts can help a business owner to carry out the process in a more simplified way as they are more well-versed with the legal proceedings. Certified professionals like Business Setup Worldwide can help you to start the process of incorporating your holding company in a hassle-free manner.
- Assigning of an advisor: Once you approach or team, an advisor (also can be referred to as a guide) will be assigned accordingly who will take care of the required essentials.
- Submitting of documents: The documents mentioned above need to be handed over to the assigned business advisor.
- Obtaining the approval and incorporation: Once submitted, the documents undergo the verification process, which will be carried out by the governed authorities of the specific nation.
- Opening a bank account: Once verified and approved, you can proceed with the bank account process. To know more, you can read our latest guide on the top ten benefits of an offshore bank account in BVI.
To understand the process of incorporating a holding company, read our latest guide on How to Start a Holding Company. In short, you can see that incorporating a holding company turns out to be a profitable move. At the same time, carrying out the process without knowledge might end-up bringing numerous obstacles. To know more about how an offshore consultant can help you, read our latest guide on Four Core Reasons to Hire an Offshore Business Consultant.
At Business Setup Worldwide, we take care of the business process and helps the business minds to establish their company. With the help of experts, we take the necessary steps of providing the hassle-free solutions of incorporating a holding company. In case if you hold any query or want to know the further steps, feel free to have a word with our business advisors. Contact us today-we’d be glad to assist.