The main function of a holding company is to minimise risk by dividing assets between various subsidiaries. That is, it is not established with the aim of producing and/or distributing goods and services (as is usually the case), but to structure a group of companies in a way that minimises risk.

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Company incorporation by purpose: holding - Confidus Solutions
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Company incorporation by purpose: holding - Confidus Solutions

Holding companies can be efficiently used to hold assets and distribute corporate profits among subsidiaries. Holding corporate structures can be also used for tax planning purposes. Read more here.