hoidmisettevõte

Hoidmisettevõte, which translates to holding company or parent company in English, is a business entity whose primary purpose is to own and control shares in other companies, known as subsidiaries. Unlike operating companies that engage in day-to-day business activities, a hoidmisettevõte typically does not produce goods or services itself. Its main function is to manage its investments in these subsidiaries, often providing strategic direction and financial oversight.

The structure of a hoidmisettevõte can vary. Some companies are purely holding companies, with no operational activities whatsoever. Others might have some limited operations alongside their holding functions. The key characteristic is the significant ownership stake in other entities, which allows the holding company to exert influence or control over their management and decision-making.

Reasons for establishing a hoidmisettevõte include risk diversification, as losses in one subsidiary may not necessarily impact the entire group. It can also facilitate tax advantages, streamline corporate governance, and allow for easier management of diverse business interests. The legal framework and specific regulations governing hoidmisettevõtted can differ significantly between jurisdictions.