A holding company is a company legally holding (owning) shares of other companies. Usually it is an LLC or LP holding enough capital shares of another company in order to control and manage its activity and profits. A holding company as such is often used only to control other business structure: it may be a corporation, LP or LLC, rather than producing its own goods or providing services. Holding companies may also be used to own some kind of property. Holdings are often used as owners of real estate, intellectual property rights, stocks and other assets. In case a company is fully owned by a holding company, it is called a subsidiary company.

Purpose of a holding company
One advantage of having a holding company is that the holding company’s assets are very well protected against losses, claims and other risks. In case one of the companies is insolvent, the holding structure will have a capital loss and a reduction of net worth overall, however, the insolvent company’s creditors cannot claim assets of the holding company in the litigation. So, a big business structure can be organized in a form of holding with just one subsidiary in order to own its IP rights, or, alternatively, to own real estate property, or, to own equipment, or to conduct business as a franchise. By constructing such complex several-layer holding structure, each daughter company among with the parent company itself are having a quite limited financial and legal responsibility, which makes it a good solution for asset protection. Making holding corporate structure may also decrease tax liability, which can be achieved by incorporating some parts of the company in jurisdictions with decreased or exempted taxes.

Holdings also allow private persons to protect their income or assets. Instead of owning assets personally and bearing full responsibility for one’s debts, possible lawsuits and other risk factors, holding structure can hold the assets instead, thus, putting only holding company’s assets at steak.

Main activities of a holding company include supervising the subsidiary companies it owns. It can recruit and fire staff, if required, however, managers of the subsidiaries will be held responsible for their decisions regardless. Even though the parent company does not manage daily operations of the subsidiaries, the holding shareholders should have a picture of what is going on and how these subsidiary companies work in order to evaluate the performance and financial data.

Benefits of having a holding structure
In addition to everything previously mentioned, there are other major benefits of having a holding structure.

Full operational control over all subsidiaries:

A holding company has full supervision and control over directors’ board of the subsidiary. Parent company has the authority recruit staff, including directors.
Can be used to own property:

A holding company can hold different types of property, including, but not limited to real estate and intellectual property rights as well as other assets.
A holding company can not only hold, but also utilize and even pledge it’s property as well as invest it.
Risk minimization:

Holdings are often used to own assets, thus usually such structures are owners of numerous valuable assets. Holding corporate structure provides legal opportunity to protect these assets from claims, damages, lawsuits and other risks.
Holdings can be organized in several different ways. This allows quite flexible asset distribution between all subsidiaries.
Holdings company can own and use property:

Putting your company’s intellectual property rights or any other assets into a holding structure may be very beneficial in terms of legal protection against potential risks.
Flexibility of participation in risky investment projects:

A holding company participating in high-risk investment projects can protect shareholders of a daughter company.
Board of directors of each of the companies must act in the best interests of their company:

The parent company and its subsidiaries are recognized as separate legal entities each, each having separate board of directors. The board of directors is liable for the company’s activities as well as they are bound to act in the best interests of the represented business.
Tax planning solution:

The holding structure may be set up entirely in a different jurisdiction, which offers decreased or exempted taxes.
The holding can be quite a beneficial structure, especially considering that it often has lower tax rates than a trust would usually have applied.

Before starting a business or even choosing a jurisdiction, you need to plan a corporate structure for your business and based on that determine the purpose of the business you wish to start. It is important to understand the business structure of your company as this will determine the jurisdiction and type of company you choose to best meet your needs.

As different legal entities are usually subject to different tax regulations, it is important to have a clear vision for your company, including the area of activity and the corporate structure. Choosing the right legal form for your business is crucial for tax planning purposes; Otherwise you risk additional costs that could easily have been avoided. Also, some types of companies are bound by certain restrictions on accepting new business partners or third-party investors, which can pose a problem if you plan to work with invested capital. One of the most important aspects is the liability of the owners: different legal entities have different levels and mechanisms of liability for the business owner in relation to the company's relationships with third parties. In order to avoid unnecessary risks, we strongly advise you to think twice before choosing a legal form.

A company’s legal structure refers to its internal composition and its management and supervisory bodies as well as the liability of the owners in relation to third parties. On this basis, we can offer you the following legal company structures:

Limited liability company (LLC)
Joint-stock company (JSC)
Limited partnership (LP)
Limited liability partnership (LLP)
Foundation
General partnership (GP)
Branch office
Representative office
Trust
Confidus Solutions can provide you with in-depth legal consultation regarding business and tax planning strategies, as well as advising on a suitable legal structure for your company. As each type of entity has its own benefits and disadvantages, we strongly recommend that you contact us before proceeding with the company formation procedure.

In Macedonia, the form of government is a parliamentary republic. In Macedonia, legislative power rests with an assembly. Prime Minister is Gjorge Ivanov. A country's governmental structure determines the way laws are written, approved, and interpreted. The type of government determines the way elections are held as well as the country's system of policing its citizens. The term of office of the head of state in Macedonia lasts until January 1, 2019. The term of office of a head of state directly affects the power and influence of the executive branch. A longer term gives the head of state more authority. The term of office of the head of state in Macedonia lasts until January 1st, 2019. The length of a head of state's tenure directly affects the power and influence of the executive branch. A longer term gives the head of state more authority. The Global Peace Index (GPI) for Macedonia is 1,944. Due to the strong presence of the law enforcement authorities and the high level of social responsibility, Macedonia is very safe in international comparison. The Strength Law Index for Macedonia is 6. Overall it is considered quite reasonable – bankruptcy and collateral laws are able to protect the rights of borrowers and lenders at least decently; Credit reports are usually sufficient and generally available. In 2013, Macedonia received US$148.9 million in foreign aid. In 2014, foreign aid was $194.9.

Government
Prime Minister in Macedonia is Gjorge Ivanov. The governmental system of Macedonia is a parliamentary republic. In Macedonia, legislative power rests with an assembly; This is a unicameral legislature and therefore a unicameral assembly. According to the World Bank Group, Macedonia's Government Effectiveness Index is 0.15. This suggests that the government of Macedonia is mediocre. While some public and public services are limited, in other cases they can be considered adequate or even effective. Potential investors should carefully study the government situation in Macedonia before considering any business maneuvers.

Unions and alliances
This section deals with a list of unions to which Macedonia belongs.

Macedonia is a member of the United Nations (UN). Macedonia is a member of the World Trade Organization (WTO). Macedonia is a member of the International Monetary Fun (IMF).