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What is Ultimate Holding/ Parent Company? Meaning & Example

Meaning

An Ultimate Holding Company is a company which has one or more subsidiary companies and any one or more of its subsidiary companies also has one or more subsidiary companies.

Sounds confusing? Check the example.

But that Ultimate Holding Company is not a subsidiary of any company.

A.k.a.

Ultimate holding company is also called as an Ultimate parent company.

Example

HLD Limited – a Holding Company

SUBS ONE Limited is one subsidiary company of HLD Limited.

SUBS TWO Limited is another subsidiary company of HLD Limited.

SUBSIS Limited is the subsidiary company of SUBS ONE Limited.

HLD Limited doesn't have any holding company, which means it is not the subsidiary of any company.

In the above case, HLD Limited is the Ultimate Holding Company of all other companies.

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