What is a holding branch?

Answer 1

A holding branch, often referred to as a holding company, is a business entity that owns and manages shares of other companies, rather than engaging in its own operations. Its primary purpose is to control and oversee its subsidiaries, allowing for centralized management and strategic oversight. Holding branches can also provide financial advantages, such as tax benefits and risk management. They are commonly used in corporate structures to facilitate mergers, acquisitions, and diversification of investments.