An institution called a ‘company’ that produces products or provides services to the public; The other, which owns only a majority stake in other companies, is sufficient to influence or vote for its management team to control and operate an institution called a ‘holding company’ or a ‘parent company’.

“Holding Company” is characteristic of (1) without the merger of the enterprise authorities and after painstaking negotiations, simply by buying shares (with less capital), can be quickly widely controlled, the operation is simple; And in law is their own independent economic entities, and holding companies in the economic responsibility is completely independent, risk responsibility will not be passed on to each other. However, the holding company may combine the enterprises into one entity to save the tax filing process. (3) Avoid the difficulties of starting a business by taking advantage of the results already achieved by existing enterprises. Such as the use of the market has been opened up and various business contacts, or has been accepted by the public signs and trademarks and the company’s credibility, etc. …