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

Answer 1

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.

Answer 2

The phrase mother company is found, especially on the internet. This is a literal translation of the term for parent company in several European languages, but is not correct in legal English.

Answer 3

The difference of holding and parent company are no actually differences between the two. Holding company is a legal one. Holding companies affiliates other companies called subsidiaries, or a daughter company. It is like we are referring to the parent and children. Parent companies are also the same as the holding companies, except for affiliating the company by mergers or by acquisitions. For example:

-Company A affiliates B and C

A is the holding company.

-Company B affiliates D and E but through mergers from other companies

B is the parent company.

So there is no difference between the two. Sometimes holding companies refers to as "Holdings". The same as in the parent company. The two of them are affiliating their companies through acquisitions or mergers.

Answer 4

the differences between parent and subsidiary company in capital budgeting