Key Takeaways:
- A holding company owns other businesses by holding shares or controlling interest.
- It offers tax advantages, asset protection, and easier business structuring.
- With Easykonto, managing finances across your group companies becomes faster and more efficient — no matter where you're based.
Understanding Holding Companies
A holding company doesn’t run day-to-day operations like traditional businesses. Instead, it owns shares in other companies — sometimes fully, sometimes partially. This structure allows it to influence or control those businesses without managing their everyday activities.
Holding companies are common in global business, especially in industries where international structuring, tax efficiency, and risk isolation are key priorities.
How Do Holding Companies Control Other Firms?
Control typically comes from owning a majority stake (more than 50%) or holding shares with higher voting power. When a holding company has controlling interest, it can:
- Appoint or remove directors
- Vote on mergers or divestitures
- Influence operations, budgets, and strategy
Even without a majority stake, some holding companies maintain de facto control through share class structures or strategic alliances.
Types of Holding Companies
1. Pure Holding Company
- Exists solely to own shares in subsidiaries
- Doesn’t offer its own commercial services
- Often used for risk isolation and strategic control
2. Mixed Holding Company
- Owns other companies and runs its own business operations
- Useful for managing complex group structures or vertical integration
- Can hold both majority and minority stakes
Benefits of a Holding Company
Tax Efficiency
Depending on your jurisdiction, holding companies may avoid double taxation and enjoy tax-free dividend transfers between entities.
Asset Protection
Assets are spread across multiple companies. If one subsidiary fails, others remain protected.
Legal Risk Isolation
A lawsuit or financial loss in one business won’t affect the parent company or other subsidiaries.
Flexible Financing
The holding company can raise capital, fund its subsidiaries, and benefit from their performance.
Easier M&A Activity
Acquiring or selling companies becomes smoother under a unified structure.
Real-World Holding Company Examples
Unilever PLC
Started as a merger in the 1920s, Unilever grew into a multinational mixed holding company with 400+ brands. It’s a perfect example of central strategy combined with subsidiary agility.
London Stock Exchange Group (LSEG)
LSEG owns entities like FTSE Russell and Refinitiv, diversifying revenue streams across fintech, analytics, and global financial services — all under one umbrella.
How to Set Up a Holding Company
- Define Your Goals
Do you want to manage risk, reduce taxes, or consolidate control? - Choose Your Structure
Pure (holding only) or mixed (operational + ownership). - Pick a Jurisdiction
Some countries (like the Netherlands, UAE, or Singapore) offer better legal or tax benefits. - Incorporate
File your registration, create governance documents, and establish legal frameworks. - Secure Capital
You’ll need funding for acquisitions or ongoing support. - Build Your Portfolio
Either acquire stakes or transfer ownership of your current companies under the new entity.
Why Holding Companies Need Better Financial Solutions
Managing cash flow across borders, currencies, and entities can be complex.
Traditional banks are slow, expensive, and not built for modern holding structures. That's where Easykonto makes a real difference.
Easykonto: Built for Holding Companies & Global Entrepreneurs
Easykonto offers:
- Danish and international business accounts
- Multi-currency IBANs
- No CPR or CVR required
- Fast KYC approval (often under 72 hours)
- Ideal for holding companies with global subsidiaries
Whether you're running a European portfolio or expanding internationally, Easykonto gives you the flexibility and speed to operate like a local — wherever your businesses are based.
Ready to Simplify Group Finances?
👉 Open an Easykonto business account today and gain smarter control of your group’s finances.
No hidden fees. No borders. Just business — simplified.
Visit Easykonto.com to get started