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A holding company, or HoldCo, is a business entity that primarily exists to own and control other companies, known as subsidiaries. It typically does not produce goods or services itself but instead focuses on managing and controlling its assets. By owning a majority of shares or interests in subsidiaries, a HoldCo can influence or control their operations and major decisions. This structure allows for the consolidation of financial reporting and centralised financial management. Additionally, HoldCo can provide a mechanism for risk management by separating assets and liabilities between the parent company and its subsidiaries, potentially limiting legal and financial risks. HoldCos may also offer tax advantages, especially when structured across different jurisdictions. While not involved in day-to-day operations, HoldCo oversees strategic decisions and may appoint management for its subsidiaries.