Meaning of Holding (What it is, Concept and Definition)

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Holding is a company whose main activity is the majority shareholding in one or more companies.

It is a company that owns the majority of shares in other companies and has control over their management and business policies.

Holding is a holding company that manages conglomerates of a certain group.

This form of partnership is widely used by medium and large companies, with the aim of improving the capital structure, or creating and maintaining partnerships with other companies.

There are two modalities of holding: a pure, which is when its corporate purpose consists only of participation in the capital of other companies and the mixed, when, in addition to participation, it also serves to explore some business activity.

An example of a holding it is when a certain company manufactures shoes and would also like to manufacture sneakers, but has no manufacturing experience.

To solve this problem, she looks for a company that makes sneakers and forms a partnership, and then they both partner with a chain of retail stores to sell the products.

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some people confuse holding with joint venture, however it is very different since joint venture it is an association of companies, which may or may not be definitive, and which explore a certain business, and none of them lose their legal status.

Find out more about the meaning of joint venture.

family holding

One holding family is not considered a type of holding, but rather as a circumstance in which the holding is configured.

For example, the holding familiar it can be pure or mixed, and what characterizes it as “family” is the fact that it is dominated and managed by members of the same family – even with the grouping of different companies.

One holding family would be nothing more than a “family business”.

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