Tips for holding companies | Why open a holding company? Is it purely for tax saving reasons or is there another reason?

What is a holding company?

It is what we usually call "parent company", which is called "Holding Company" or "Controlling Company" or "Parent Company" in English. It is actually the largest shareholder of a company or enterprise. It is also a company itself, but it does not do specific operations. It is just a company that holds shares and wealth. If there is a parent company, there will be subsidiaries. When the subsidiary encounters trouble, if there is a parent company, it can protect the interests of the subsidiary and reduce its losses. How does it work? Let me tell you the story of Mr. Shi.

 

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