Holding companies are widely used in group structures between parent companies and subsidiaries. Inserting a holding company can legally separate risks in different entities or business divisions. It can also facilitate the future sale of part of the business or allow for a group reorganisation. It may also be required by a third party for example where external debt funding is being sourced. A holding company can also be used to keep the top parent company ‘clean’ and simple which can be desirable particularly if the parent company is listed. There could also be tax benefits associated with the use of holding companies.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
Holding companies are widely used in group structures between parent companies and subsidiaries. Inserting a holding company can legally separate risks in different entities or business divisions. It can also facilitate the future sale of part of the business or allow for a group reorganisation. It may also be required by a third party for example where external debt funding is being sourced. A holding company can also be used to keep the top parent company ‘clean’ and simple which can be desirable particularly if the parent company is listed. There could also be tax benefits associated with the use of holding companies.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes: