Holding and subsidiary company and associate company

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.