Date posted: 27th Feb 2026
A holding company is a simple way to own and control one or more businesses or assets from the “top”, without doing the day‑to‑day trading in that company itself.
What is a holding company?
A holding company usually does not trade or employ staff directly. Instead, it owns shares in one or more trading companies and holds valuable assets such as property, cash or investments.
Reasons you might want one
- Protecting assets: You can keep valuable assets (for example, property, brand, surplus cash) in the holding company and let a separate trading company take on day‑to‑day risks. If the trading company runs into financial trouble, those assets are better protected.
- Running multiple businesses: If you have more than one trade or brand, you can put each into its own company under one holding company. This makes it easier to buy, sell or close one business without affecting the others.
- Easier growth and investment: A holding company can buy new businesses as subsidiaries. It can also be easier for investors to take a stake at the holding‑company level, rather than in each individual business.
- Succession and family planning: For family‑owned businesses, a holding company can make it simpler to pass ownership to the next generation while keeping control and management clear.
Is a holding company right for you?
A holding company is most useful if you:
- Have (or plan to have) more than one business, trade or property.
- Want to ring‑fence risk around a particular activity.
- Hold significant assets you want to protect for the long term.
The structure does add admin and cost, so it is not usually worthwhile for very small or simple businesses.
If you have any queries, please contact us.
