Understanding a Holding & Management Company: Why is it needed and what are the stakes?

    What do you understand about the concept of a holding and management company? For easier understanding of the term, let’s take an example of the brand Apple. An American multinational technology company headquartered in California, it designs, develops and sells different consumer electronics. From iPad to iPhone, MacBook to Smart Watches, Apple is perpetually regarded for its innovative marketing strategies and line up. Now, these are the products under one umbrella company, i.e. Apple. Here Apple can be termed as the Holding & Management company and the products like iPhone, MacBook as a subsidiary. In simple terms, a Holding company is the one that holds the promoter shareholding in group companies.

     

    Based in New Delhi, we are one of the leading holding and management companies that invests in IT and other domains in the country today. We provide helping hands to the subsidiary companies – which are advised on HR, finance and accounting, IT, legal, admin and domain. While providing concrete solutions to enhance business processes, cost efficiency and resource management, our company also ensures hassle-free & immediate implementation on a practical level – helping businesses grow and prosper well.

     

    Why is it needed?

    To better understand the concept of a holding company, imagine that you and your friend decide to invest together. You establish a new company “Mark Corp Inc” and complete all the paperwork. Then you and your team incorporate new, different business ventures or ideas under the entity “Mark Corp Inc”. In this scenario, you need not run the operations of any existing venture as it would be done by the employees, as all you’re doing here is investing and presenting the ideas to run the operations successfully.

    This not just provides employment but also enhances the work ability of the subsidiary companies because the person overlooking the work would be you. This is what a Holding company does. It not just invests but also helps the subsidiary companies enhance their performance, work ability with better management tools and exercises. Over the years, we have provided entrepreneurs with all the required financial, managerial and informational resources to elevate their local, emerging market startups to a globally competitive level and would continue to do so.