What is an immediate holding company?

Immediate: An immediate holding company is a company that owns other companies, but is itself owned by another entity. In short, these are holding companies that are owned by another holding company. Intermediate: Similar to an immediate holding company, these are holding companies that are also subsidiaries of a larger corporation.

What is a holding company?

A holding company is also sometimes called an “umbrella” or parent company. A holding company is a type of financial organization that owns a controlling interest in other companies, which are called subsidiaries. The parent corporation can control the subsidiary’s policies and oversee management decisions but doesn’t run day-to-day operations.

What is a personal holding company?

A personal holding company is a company where 50% of the ownership stake is controlled by five or fewer individuals, and at least 60% of the company’s income comes from passive sources. A holding company is a type of business entity that has a single purpose: owning other companies.