1. Different definitions: A group company refers to a large enterprise group that forms vertical and horizontal integration effects by managing and controlling multiple subsidiaries and branches. Holding group company refers to the company organization form based on equity control, that is, by holding the controlling shares of other companies, it manages and controls other enterprises.
2. Capital structure: Group companies usually raise funds by issuing stocks and bonds to the market, and control and integrate multiple enterprises through equity investment in subsidiaries. However, holding group companies usually gain control over the outside world by directly purchasing shares of other companies or in the form of preferred shares.
3. Organizational structure: There are also differences between them in organizational structure. Group companies usually take the headquarters as the decision-making and authorization center to integrate and manage multiple subsidiaries vertically and horizontally. Holding group companies take holding companies as the main body, directly control many enterprises and integrate them.