A subsidiary or daughter company is a company that is owned or controlled by another company, which is called the parent or holding company.
A Holding company must hold more than 50% shares in another company known as a subsidiary company. The purpose of the holding company is to control, acquire assets and manage the affairs of the subsidiary company. It must maintain a controlling share of the subsidiary company to retain its status and to be able to prevail on the subsidiary company.
BASIC REQUIREMENTS FOR THE REGISTRATION OF A HOLDING COMPANY.
1.The applicant is to bring a formal application for Consent to use the word “Holding” in the name of the company.
2.There must be evidence of at least, 2 subsidiary companies, which must be Limited Liability Companies whose controlling stakes are being held by the applying company.OR
3.Statement by the majority of the Directors of the proposed holding company that the company shall acquire more than half in the nominal value of the share capital of each of the subsidiaries within 90 days of incorporation of the Holding Company.
4.The applicant is to provide evidence of updated annual returns of the existing subsidiary company.
5.A power of attorney given powers to the lawyer for representation.
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