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A subsidiary is an 'off-shoot' or 'child' of an existing company, either partly or fully owned by the 'mother' company doing mostly similar or complementary businesses, e.g., a travel services subsidiary of a big bank (the bank's executives travel so much it makes sense to have a self-owned company serve its needs).

A holding company holds the shares of stock, or shares of ownership of other companies, usually but not always controlling shares (enough shares to exert control of the companies). If you own shares of stocks in a holding company, you are essentially owning a part of many different companies and are trusting the holding company's management to handle the proportions for you.

A subsidiary is the down result of a business idea. A holding company is the up result of a business idea.

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Q: What is the difference between a subsidiary company n a holding company?
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Related questions

What is the difference between a subsidiary company and a holding company?

R656578


Difference between holding and subsidiary company?

The difference between a holding company and a subsidiary company is the amount of stock ownership. A holding company buys other companies to control their stock. The subsidiary company is the company that is owned or controlled by the holding company.


What is the difference between a holding company and a personal holding company?

difference between holding company and personal holding company and the corporation ltd.


Can the word HOLDING COMPANY be an antonym for SUBSIDIARY COMPANY?

No. Because Subsidiary Company is completely under the control of Holding Company.


Can a subsidiary own shares in its holding company?

If a subsidiary own shares in holding company that would be considered as treasury.


Why does a company become a subsidiary company and a holding company?

A company will be called a subsidiary/holding(sebtion-4 of companies act,1956)- if a company holding a company of another i.e it may be of (i).where the other company controls the composition of its board of directors,or (ii)where the company hold more than 50 percent of paidup capital,or (iii) The company is subsidiary of the subsidiary. IS CALLED THE SUBSIDIARY COMPANY .The other than subsidiary is called holding i.e which controls the other company due to the conditions stated above


Indian Subsidiary?

A subsidiary company is one that is controlled and managed by another company, which can be either a parent company or a holding company.


What is difference between related company and fellow subsidiary?

A related company is a company who has similar or the same management or key personnel i.e. they share the same directors etc.A fellow subsidiary is a company who shares the same Shareholders as another company i.e Holding Company A owns 100% shares in company A and company B. Company A & B are then Fellow Subsidiaries.


Is there any difference between holding company and a parent company?

Holding Company - If a company holds substantial interest in other company, then former company called as holding company; Usually the interest is @51%. Parent Company - If an existing company forms a new company in which existing company holds maximum equity, the it can be called as parent company. In both the cases, holding interest is material to understand Holding and Parent situation. Once this holding and subsidiary concept emerged in India after booming up Software Industry, the gap between Holding and Parent has been minimized.


Can a holding company use loss of its subsidiary company to set off its profit?

No,


Auditor of holding company and subsidiary co?

a holding company may be resolution authorised representation in respect of books of accounts of its s


Will a employees of subsidiary company enjoy equal salary structure of a parent or holding company in India?

Not necessarily.