Large-scale businesses typically use this kind of Holding. The Holding company itself is also an operating company, while the subsidiaries are branches. Within this structure, the parent company’s maintains tight control over its subsidiaries.
Within a Management Holding, the parent company issues directives to its subsidiaries about business strategy, capital flow management, and recruitment for management positions. Management Holdings often choose countries with attractive tax regulations to base their operations.
Finance Holdings focus only on investment management rather than business oversight. In some cases, the parent company sets financial targets for its subsidiaries and functions as a corporate bank by providing capital.
Organisational or Structural Holding
This kind of corporation uses the Holding legal form as an organisational structure. Each subsidiary is a different department of the parent company.
Holding as a shareholder
Within this structure, the Holding acts as a regular shareholder, leaving the subsidiaries to manage their respective business operations autonomously.
This structure gives shareholders the tax benefits of a Holding without creating additional costs or increasing administrative burden.