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March 2021
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A holding company usually does not manufacture or sell any service or product and does not conduct business operations but it holds stock and membership interests in various different companies. The main purpose to establish holding company lies in the fact of how it can be used. A holding company structure is usually popular with large businesses and enterprises where a company manufactures various types of goods like healthcare, skincare, baby care, hair care products. Instead of structuring various divisions within the company it can be structured with a holding company and other subsidiaries. This makes the business model simple generating channelized profits. Each unit of business is a different subsidiary and the holding company holds an interest to control. Incorporate holding company- Learn about its advantages. Advantages:
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