Definition: Holding company

Category: Foreign direct investment

A holding company is a company established to hold participation interests in other enterprises on behalf of its owner. Some holding companies may have a substantial physical presence as evidenced by, for example, office buildings, equipment, and employees. Others may have little or no physical presence and may exist only as shell companies. http://ec.europa.eu/eurostat/ramon/statmanuals/files/Foreign_direct_invest_EN.pdf