Holding Company

A parent company that owns controlling stakes in one or more subsidiary businesses, holding the assets and shares without necessarily conducting its own trading operations.

A holding company structure allows founders to separate different businesses, protect assets, optimise tax across entities, and consolidate ownership under a single umbrella without commingling risk.

A founder establishes a holding company that owns 100% of her coaching business and 60% of a software tool she co-founded. If the software business faces a legal claim, the holding structure protects the coaching business assets from liability.