Creating A Holding Company | P.A. Duffy & Co Solicitors

Creation of Parent or Holding Company

With the formation of a Parent/Holding Company, a new company is formed with its own board of directors, shareholders and articles of association which is typically used to centralise the control and ownership of multiple subsidiary companies. Our expert team, at P.A. Duffy & Co., can guide you through the complex legal and financial process of creating a parent company.

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About Creation of Parent or Holding Company

How we can help

Creating a parent company during company restructuring involves the formation of a new company, often referred to as the "parent" or "holding" company. This restructuring strategy is typically used to centralise the control and ownership of multiple subsidiary companies. The difference between a parent and a holding company is that a parent company may engage in its own trading.

During a restructuring, our legal professionals, who specialise in corporate law and governance, will ensure ease during the complex creation of a parent/holding company. We will make sure your company restructuring is handled with care, serving the best interests of the company and its stakeholders. The creation of a Parent/Holding Company can be used for:

Streamlining operations.
Risk management.
Ownership controls
Tax efficiency

Call us on 028 8772 2102 (Dungannon/Belfast).

How We Can Help

Firstly, a new company is established, which becomes the parent or holding company. This company will have its own board of directors, shareholders, and articles of association. The parent company acquires ownership of one or more existing subsidiary companies. These subsidiaries may continue to operate as separate legal entities, each with its own board of directors and management.

The parent company holds the majority of shares in its subsidiaries, giving it control over the subsidiary companies' strategic decisions and operations. The parent company often centralises certain functions, such as finance, administration, and strategic planning, to achieve greater efficiency and coordination across its subsidiaries.

The creation of a parent company is a complex legal and financial process that should be executed with careful planning and professional advice. At P.A. Duffy & Co., our team can help companies in Northern Ireland navigate the legal requirements and tax implications of this type of restructuring.

FAQs

Many global corporations employ group company structures to simultaneously own and manage multiple companies, mitigating risks, and potentially optimising tax obligations. The primary concern for these entities is insolvency, and by utilising a holding company, as long as the holding company hasn't provided guarantees for the debts of its subsidiaries, it shields the remaining assets of the holding company from subsidiary company liabilities. This safeguards the holding company's assets, with the only potential loss being the investment in the subsidiary.