Question

Difference bdtween holding company and parent company

Answer 1

A Parent Company is simply acompany that holds the majority of shares in another company. Parent Companies usually acquire subsidiaries either through mergers or through acquisitions. By definition, aHolding Company is a Parent Company. ... Holding Companiesusually tend to not have a business of their own.

Answer 2

HOLDING COMPANY

According to section 2(46) of the companies act,2013,"Holding company", in relation to one or more other companies, means a company of which such companies are subsidiary company.

SUBSIDIARY COMPANY

Section 2(87) of the companies act,2013 defines "subsidiary company" as a company in which the holding company:

1.Controls the composition of the boardbvof directors; or

2.Excercises or controls more than one-half of the total share capital either at its own or together with one or more of its subsidiary companies.