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Holding Companies in South Africa: Definition, Registration & Compliance
A holding company is a parent company that owns shares in other businesses, controlling them without conducting day-to-day operations. In South Africa, a holding company is not a special legal form – it’s simply a regular private company (Pty Ltd) set up to hold shares in subsidiaries. For example, Investopedia explains that a holding company “owns and oversees other businesses” and focuses on managing subsidiaries through voting stock. This structure allows entrepreneurs to pool assets and diversify risk under one umbrella 🏢. Holding companies offer tax efficiencies and asset protection, since liabilities of one subsidiary don’t directly affect the others. How to Register a Holding Company Registering a holding company…