Concept in Definition ABC

The word holding company It is a term of the English language whose use was fabulously extended, even, being inserted between the terms of the Spanish language as one more and it is used to designate that form of organization of a company according to which a company financial It takes over the majority shareholding of other companies which, from that moment on, it will begin to control.

And also, the term holding is used to refer to the conglomerate formed in the aforementioned way.

The parent company becomes such because it has enough economic capital to make decisions that involve it, both it and its satellite companies.

One of the main advantages of this type of structure business is the efficiency fiscal that report as a consequence that the tax burden on the income statement may be less than the sum of the charges on each of the companies belonging to the group and which are considered in a individual; Meanwhile, in the event that the holding company headquarters is located in a country that has a

legislation more flexible, of course, which will have a very favorable impact on her when it comes to paying taxes.

Although the holding company is considered as a way of integration business, with the aforementioned benefits that such a situation represents, may also be the result of the union of several capitalists who are acquiring different properties and companies solely with the mission of achieve cost effectiveness economic of each one of them and not the integration of the activities. It should be noted that the antitrust legislation seeks in some way to stop the last practice mentioned.

There are different types of holding companies: holding companies created from banks or other financial entities, holding companies that are the result of heritage relative of a family, holding companies formed by companies that depend on the state and holding companies that are a group of companies with common or related capital that what they seek is to maximize the economic resources of these, using the forces and energies that occur between the companies that make it up because they all belong to the same work area.

Topics in Holding