Establishment of a holding company

A holding company is a type of business structure that consists of the consolidation of several separate companies under the management of an ultimate parent. The main company is given the right to make important restructuring decisions and manage the activities of the others. At the same time, the financial, legal and documentary autonomy of each company is preserved.

The creation of holding companies is argued by the need to organize the management of subsidiaries and to pool resources to compete on the international market. Alt-industry lawyers will help you organize your business within the legal framework of the chosen country. Professional support guarantees:

• creating a holding company model that complies with the requirements of the antimonopoly committee and local legislation;
• minimizing all risks related to the founders’ assets, unlawful encroachment on property and tax consequences;
• ensuring maximum confidentiality;
• distribution of authority and competence among subsidiaries and structural units of the holding company.

Types of holding structures

Depending on the functions of the management company, there are several main types of holdings – financial, contractual and mixed:

1. Financial (pure) holding.
   The ultimate parent owns a controlling stake in subsidiary firms and performs a management function. In such holdings, the corporate parent is not engaged in business activities and does not provide any services.
2. Mixed (non-financial) holding company.
   The main company is engaged in the main business activity, produces goods or provides services. It also owns the majority of the share capital of the subsidiary firms and makes decisions on their management.
3. Contractual holding company.
   It is managed on the basis of a preliminary contract. In this case, the main company does not own the shares or capital of the subsidiaries. The main firm provides management services under a contract.

The process of establishing a holding company

Alt-industry lawyers will help to implement the business plan and organize the structure of a pure or mixed holding company in the international legal field. Professional support guarantees compliance with the regulations of the chosen jurisdiction. At the same time, the companies participating in the holding company may:

• be located in different cities or countries, including offshore zones;
• differ in their form of organization and type of business activity;
• be linked in a vertical, horizontal or diversified way.

The process of creation a holding company is quite individual and involves buying up shares, signing key agreements to transfer management rights, and creating a separate business unit. The overall procedure usually consists of several important steps:

1. Preliminary Consultation.
   The initial preparation stage includes a study of the available assets, possible risks, determination of the type of ownership rights, as well as an independent Due Diligence procedure.
2. Preliminary Consultation.
   The initial preparation stage includes a study of the available assets, possible risks, determination of the type of ownership rights, as well as an independent Due Diligence procedure.
3. Creation of the holding company model.
   Lawyers will organize the work of a multi-level system with contractual links, which will allow efficient management of corporate capital.
4. Control over implementation.
   Alt-industry support guarantees support at each stage of creation and operation of the holding at the corresponding request of the client.