A holding company is a company or firm that owns other companies. Holding companies allow the ownership and control of a number of different companies that may have different operational requirements or trading in different products or services. Many large business organizations fall in this category. Sometimes a company intended to be a pure holding company identifies itself as such by adding 'Holdings' to its name.
A holding company in Zambia is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies to form a corporate group. These corporate groups are listed in this category.
A holding company is a company that doesn’t have any operations, activities, or other active business itself. Instead, the holding company owns assets.
These assets can be shares of stock in other corporations, limited liability companies, limited partnerships, private equity funds, hedge funds, public stocks, bonds, real estate, song rights, brand names, patents, trademarks, copyrights—virtually anything that has value.
Each of the subsidiaries is a stand-alone company with its own offices, bank accounts, and manufacturing facilities. They could be located in countries around the world and staffed by local employees.
The process for starting a holding company is the same as the process for starting any business in your state. You'll need to name the company, file articles of organization, set up a separate bank account, pay fees, and meet any other state requirements for starting a business.
If you're managing multiple businesses or looking to invest in several cash-generating businesses, it might make sense to consider starting a holding company. The holding company can provide protection for your business assets along with potential tax benefits. Having a holding company will create additional administrative needs and business fees, so be sure the benefits outweigh the costs.