Glossary · Markets & strategy
Holding company vs operating company
A **holding company** owns stakes in other companies; an **operating company** runs day-to-day business. Startups sometimes separate them for tax, liability, or cross-border structure — especially when investors want a familiar topco.
Related: Emerging market · Cap table · Venture capital (VC)
A bit more nuance▾
- Details are jurisdiction-specific; names and tax treatment vary by country.
- The goal is usually clean ownership and simpler investing — not cleverness for its own sake.
Go deeper▾
Discussion questions▾
- What problem would a holdco solve for your investors and employees?
- Where do you need local counsel vs a generic template?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.