Advantages of China Holding Company
1. Obtain extensive control with less capital.
2. Able to extend controllability over a number of enterprises in a short period of time by buying the stock of the existing enterprises. It’s much more rapid than formatting new enterprises.
3. Extending the business line with existing human resources of the subsidiaries and entitled to the profit from subsidiaries.
4. Able to minimizing the business risks from operating due to the holding company scattered its investment to diversified industries, hence, the profits can cover one another to ensure a stable profitability.
5. Enjoy tax consolidation benefits such as tax-free dividend can be claimed.