About this deal
If you want to create a holding company, it’s important to note that it isn’t a type of legal business structure. This means that you’ll still need to choose between being a limited company or a sole trader. Whilst not a requirement, it makes sense that most holding companies are set up as limited companies. One of the main benefits of having multiple companies under one holding company comes from the fact you can move assets between different subsidiaries tax-free. But it’s important to note that tax is a complex topic, so it’s always best to get advice from a professional if you're not sure of anything. When talking about holding companies, you may also hear about parent companies. While both types have subsidiary companies underneath them, the two have very different business practices. Once you’ve settled on your business structure, you can start your holding company the same way you would set up any new business. But for a few things to remember, take a look at the below list:
Before you start a holding company, you need to decide if it makes strategic sense for your business. Owning multiple companies can allow you to grow your market reach and customer base. Your companies can all be in a similar industry or trade, or you can invest in as many different areas as you like. It can be a great option for those keen to try new things. Nonwovens, whether or not impregnated or laminated, n.e.s., of man-made filaments, weighing > 70 g/m² but <= 150 g/m² (excl. coated or covered) open a bank account for your holding company – we have a list of the best business bank accounts hereHowever, investing in multiple businesses will mean you’re working with a wide range of shareholders, which can come with its own sets of challenges. You’ll also be working with different teams (perhaps in different industries) and the amount of control you have over your subsidiaries will depend on how many shares you own in them. Bedlinen of textile materials (excl. of cotton, man-made fibres, flax or ramie, printed, knitted or crocheted) Every business starts with an idea – except for that’s not always the case. Perhaps your winning business idea is to create a holding company – a company which exists solely to invest in subsidiary companies. Whilst a holding company invests in subsidiary companies, it doesn’t have any other business practices of its own. This means that the holding company itself isn’t producing any goods or services. All outputs come through the subsidiary companies.
A holding company doesn’t produce any goods or services of their own, as its value comes from a strong business understanding and seeking out good investment opportunities. If you set up your holding company as a limited company, you’re more protected than you would be as a sole trader. Your company is considered legally separate from you as a business owner, so you won't be faced with high personal debt if your business makes substantial losses.Keeping your businesses separate allows you to protect your assets. Any assets are held by the holding company, meaning that if one of your companies goes bankrupt, any other companies you own won’t face the repercussions. Woven fabrics containing predominantly, but < 85% polyester staple fibres by weight, other than those mixed principally or solely with wool or fine animal hair, man-made filament, viscose staple fibres or cotton, dyed or made of yarn of different colours Articles for interior furnishing, of textile materials (excl. of cotton or synthetic fibres, knitted or crocheted, blankets and travelling rugs, bedlinen, table linen, toilet linen, kitchen linen, curtains, incl. drapes, interior blinds, curtain or bed valances, bedspreads, lampshades and articles of heading 9404) You could invest in a series of similar companies and spread your market reach – or focus on diversifying your portfolio with different business opportunities across multiple trades and industries. Seats, convertible into beds (excl. garden seats and camping equipment, and medical, dental or surgical furniture)