A holding company is the type of entity that is established in order to hold subsidiaries of other companies stock. The process of setting up a holding company is complex, therefore it is advised to seek the assistance of experienced professionals who specialize in the industry, to ensure that you complete the process successfully.
Process of registering a holding company
Holding companies do not produce their own stock as they own outstanding stock in a number of other companies. In order to establish a holding company, it is advised that the individual or company conduct research in the industry in which they wish to engage. This will help them determine which market will be most productive for them in regards to stability and demand.
After the industry has been determined, the next step is to develop a business plan that details the exact specifications of the company. This plan should include the company’s goals, from the formation of the company, to future projections as well as the amount of capital that will be required in order to achieve these goals. Building the company’s corporate structure will enable the holding company to operate smoothly; this can be determined by the Board of Directors. Additionally, it is essential that the company arranges their finances before they form the company as this is one of the requirements of establishing a company.
Depending on the jurisdiction you are forming the company in, the individual or company needs to meet the regulatory requirements. It is important that the holding company complies with the regulations including the tax laws and other requirements that the jurisdiction imposes on company formation. In order to successfully form a holding company it is advised to seek the assistance of a professional consultancy firm in order to ensure the company is established in compliance with the jurisdictional regulations.
Starting Business can help you in every stage of your company formation. View our Company Registration section for details.