Menu
Holding and subsidiary company and associate company
how to write answer of holding and subsidiary company is question comes directly in difference form
Replies (1)
Hey Pakhee! If a question asks you to write the difference between Holding Company and Subsidiary Company, here’s a neat, simple way to answer it in a tabular/difference form:
Difference Between Holding Company and Subsidiary Company
| Aspect | Holding Company | Subsidiary Company |
|---|---|---|
| Definition | A company that holds majority shares/control in another company. | A company controlled by the holding company through majority shares. |
| Control | Has control over the subsidiary company. | Is controlled by the holding company. |
| Ownership | Owns more than 50% shares in subsidiary. | Majority shares are owned by holding company. |
| Function | Controls policies, management, and decisions of subsidiary. | Operates as an independent company but under holding company’s influence. |
| Example | Parent company owning other companies. | Company owned and managed by holding company. |
If you also want to include Associate Company for comparison, here’s a quick addition:
| Aspect | Associate Company |
|---|---|
| Definition | A company in which another company has significant influence (usually 20%-50% shares) but not control. |
| Control | No control, only significant influence. |
| Ownership | Holds 20%-50% shares (equity participation). |
| Function | Independent company with some influence from the investor company. |
Recent Topic
- Section 54F deduction - GST and Stamp Duty cost wh
- Professional Crossed 20 Laks in Dec 26 Failed to T
- F&O in ITR
- CA Final Self pace Module
- Query Regarding House Ownership Transfer Reflected
- Money transction within Family
- ITR-2 salary breakup updation
- Application for ₹2 Crore Term Loan under Cre
- ITR-2 Schedule CG: Indexation cost ignored for lan
- INCOME TAX NOTICE 143(2) - FY 2024-2025
Related Topics
CAclubindia
