What does it mean to establish a holding company?

Holding company refers to a company that controls a company by holding a certain number of shares. Holding companies are divided into pure holding companies and mixed holding companies according to their holding methods. Pure holding companies do not directly engage in production and operation business, but only carry out capital operation by holding shares of other companies. Hybrid holding companies not only carry out capital operation through holding, but also engage in some production and operation businesses. Requirements for establishing a holding company: According to the regulations of SASAC, there is no threshold such as the amount of capital. Holding company is not a withdrawal company, but a necessary company form, which is a very important link in the capital management chain and its management content is also true. Holding companies of industrial groups are different from general investment companies and investment banks. It is based on a certain professional direction and core expertise, and is committed to seeking development in an industry and realizing its economic benefits. The management of the holding company is carried out through clear procedures in the company's articles of association, such as shareholders' meeting, board of directors and board of supervisors. As a holding company of an industrial group, it cannot be equated with a "superior unit", but must actually exercise the duties of a major shareholder and complete the management tasks assigned by the state and superior departments. Therefore, its management features are as follows: first, large-scale national industrial companies should connect with relevant state departments on behalf of all subsidiaries. Second, the formation of property rights through shareholding requires the formation of a relatively perfect corporate governance structure such as shareholders' meeting, board of directors and board of supervisors. Third, as a major shareholder, it is essential to examine the strategy, investment and human resources of subsidiaries from a macro perspective. Article 8 of the Company Law stipulates that a limited liability company established in accordance with this Law must indicate the words limited liability company or limited company in its name. A joint stock limited company established in accordance with this law must indicate the words joint stock limited company or joint stock company in its name.