A holding company in Russia
is a legal entity that can control the management and the financial aspects of another company, as long as the holding company
has a sufficient number of voting rights in the other company
. Holding companies
are incorporated with the sole purpose of controlling the assets of other businesses in accordance with the rights derived from the voting shares
. Foreign investors who are interested in opening a holding company in Russia
can receive an in-depth presentation on the main advantages of this type of company from our Russian company formation agents
Features of a Russia holding company
According to the Russian legislation, which has recently been modified (1st of September 2014), a Russian company can’t be 100% owned by a holding company if its shareholder is also owned 100% by another shareholder.
A company in Russia
can be fully owned by a holding company
if the other company has at least two shareholders.
There are two types of holding companies in Russia:
• pure holding companies;
• operating holding companies.
A pure holding company
refers to the entity which owns voting rights and shares in another company with the purpose of controlling various aspects of that business, while the operating holding company
has the function of the pure holding company, but it also conduct its own businesses; our Russian company formation agents
can provide you with further information on the types of holding companies
Advantages of a holding company
Foreign investors interested in opening a holding company should know that such a company can receive dividends from the company in which it owns voting rights and shares; a holding company can offer finance to the other company and own intellectual property rights, from which the shareholders of the holding can receive royalties. It can also provide a unified management and an optimized distribution of cash flow.