It is a holding company, or commercial company whose main or only function is to own or manage the property of other companies. It can be considered a form of business integration, with all the benefits it represents, but also; It arises when a group of capitalists who are acquiring various properties and companies, simply seeking the profitability of each one and not the integration of their activities. In some countries, antitrust laws may restrict this practice.
There are participations that are created through banks and other financial entities, holding companies that are part of the assets of a family and also holding companies formed by state companies.
There are holdings that are a group of companies with common or related capital that seek to maximize their economic resources, using the synergies that occur between the companies that compose it, simply because they are all from the same heading or sector.
Holding is an English word but accepted in our language that is already included in the Royal Spanish Academy. has among many of its advantages; the holding company is often used to benefit from tax incentives, that is, they are paid less tax. Other of its benefits; Reach more sectors of the market in an easier way, Ease of integration both backwards and forwards to gain control of all parts of the product life, Eliminates the disadvantages of groups of companies.
On the other hand, the holding company runs the risk of becoming a market monopoly, highly sought after by the governments of the different states. Instead of being just a group of companies in which each one would have power and each one would have to pay and impose taxes independently, the holding company has a headquarters, which is the main one and on which other companies depend. Therefore, the payment of taxes is global of the activity that is carried out.
