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All Questions Business Set Up What Is A Dual Company Structure?
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What Is A Dual Company Structure?

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A dual-company structure involves two companies: the holding company and the operating company (also known as the trading company).

In this configuration, each company does exactly what their titles suggest. An operating company does things, a holding company holds things.

In this structure, the holding company wholly owns the operating company. The operating company owns the company’s major assets and capital — such as intellectual property, real estate, cash and any liabilities. The holding company does not oversee the day-to-day workings of the business.

The operating company will carry out the traditional operations and day-to-day work of the business, like entering into contracts with third parties, hiring employees, providing goods and services, and dealing with customers.

Esha Kumar  
Esha is a law graduate at Sprintlaw from the University of Sydney. She has gained experience in public relations, boutique law firms and different roles at Sprintlaw to channel her passion for helping businesses get their legals sorted.

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