Kattevõte

Kattevõte is an Estonian term that translates to "holding company" in English. A holding company is a business entity that owns a controlling interest in other companies, known as subsidiaries. The primary purpose of a holding company is not to produce goods or services itself, but rather to manage and control its investments in other businesses. This structure allows for diversification of assets and can offer tax advantages and reduced liability for the parent company.

The operations of a holding company are typically limited to its ownership and management functions. It may receive dividends, interest, and other income from its subsidiaries. In some cases, a holding company might provide certain services to its subsidiaries, such as administrative, financial, or legal support, but this is not its defining characteristic. The key element is the ownership stake, which grants the holding company the ability to influence the strategic decisions and operations of the companies it controls.

Estonia, like many other countries, has a legal framework that defines and regulates the activities of holding companies. These regulations often address aspects such as taxation, corporate governance, and reporting requirements. The use of holding companies in Estonia can be part of broader corporate structuring strategies for both domestic and international businesses operating within the country.