Indian-holding companies

The Company Law in India defines a holding company as a commercial entity that is registered with the intention of controlling other businesses. Another legal entity may be owned by the holding company through share ownership or managerial control. Under Section 2 (46) of the Companies Act 2013, entrepreneurs who are interested in forming a company in India using this business form may discover a detailed explanation of the word. Our team of experts in Indian company formation can offer legal assistance for the steps involved in registering this business entity.

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The primary characteristics of Indian-holding corporations

An Indian holding company's primary function is to make investments in operational businesses, which are other firms. A holding corporation may typically engage in the activities like choosing the investment guidelines for its running firms, borrowing and lending.

It is crucial to understand that a holding corporation is not permitted to carry out commercial operations in India, just as in other countries. Due to its asset protection laws and tax reduction programmes, this type of company is typically formed by businesspeople. Our representatives in India can offer more guidance on the key benefits offered by the holding company. Indian trademarks as well as other intellectual property rights are an asset that may be owned by holding corporations.

Types of holding companies

The operational holding and the commercial holding company are two significant subcategories of holding corporations. These can also be separated into holdings that are pure, mixed, immediate, and intermediate. The following are the primary variations between businesses operating as holdings in India:-

  (a) The main objective of the newly formed pure business will be to hold stock in its subsidiaries;

  (b) The mixed business will be in charge of overseeing its own activities in addition to holding ownership in one or more subsidiaries;

  (c) The firm that has voting rights or shares in another of its own subsidiary companies is the immediate holding company;

  (d) The intermediary business that functions as a corporation's subsidiary and holding company.

In India, the publishing industry is often run by holdings or intermediary businesses. These kinds of organisations may also be found in India, where they can hold a variety of assets depending on the reason for which they were created.  Our local experts can give essential support in establishing this sort of corporation since they have extensive expertise in company creation in India.

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