holding companies

A holding company is a business that owns controlling interests in other companies, called subsidiaries, but typically does not produce goods or services itself. Its primary purpose is to manage and oversee these subsidiaries, often providing strategic direction, resources, or capital. Holding companies can help organize complex corporate structures, limit financial risk through separate entities, and potentially optimize taxes. Essentially, they act as a parent organization that controls multiple businesses without being directly involved in their day-to-day operations.