Mr Pierre Calleja Group CEO
Mr Jeffrey Muscat Group Managing Director

New Vision International Holding Limited & JEPI HOLDINGS LLC owners are always looking for ways to protect our business’ assets. And over the years a number of strategies have been developed to help us do so. One of the most effective is to divide the business into several business entities all owned and controlled by New Vision International Holdings Limited.

What is a holding company?

A holding company is a parent business entity—usually a limited or LLC that doesn’t manufacture anything, sell any products or services, or conduct any other business operations. Its purpose, as the name implies, is to hold the controlling stock or membership interests in other companies. Some of the subsidiary companies it owns actually do manufacture, sell, or otherwise conduct business. These are called operating companies. Other subsidiaries hold real estate, intellectual property, food selling. meat selling, poultry selling , vehicles, equipment, or anything else of value that is used by the operating companies.

The holding company can own 100% of the subsidiary, or it can own just enough stock or membership interests to control the subsidiary. Having control means it has enough stock or membership interests to ensure that a vote of owners will go its way. This can be 51%, or where there are many owners, it can be a much lower percentage.

Each subsidiary has its own, directors and managementwho run the day-to-day business. The holding company’s management is responsible for overseeing how the subsidiaries are run. and can make major policy decisions like deciding to merge or dissolve.

How is a holding company financed?

The New Vision International Holding Limited management is also responsible for deciding where to invest its money. New vision International Holding Limited have do partnership with LUXCAPITAL GROUP and give them the holding Legal and Finance Department and can obtain the funds to make its investments by selling equity interests in itself or its subsidiaries or by borrowing. It can also earn revenue from payments it receives from its subsidiaries in the form of dividends, distributions, interest payments, rents, and payments for back-office functions it may provide.

How is a holding company used?

Holding companies are used by businesses of all sizes and in all industries. Many of the best known publicly traded corporations are actually holding companies and many of the people buying their stock don’t even realize they’re investing in a holding company and not the operating company.

New Vision International Holding Limited company structure is popular with large enterprises with multiple business units. Take, for example, a large corporation that manufactures and sells several different consumer and industrial goods, including scrap iron, scrap copper, meat supplies, fish supplies, poultry supplies, fruit and vegetables supplies and much much more. Rather than using one corporation with different divisions, this enterprise could be structured with one holding company and several subsidiaries. Each business unit could be operated as a separate subsidiary in which the holding company owns a controlling interest. The company’s trademarks, equipment, and real estate may also be placed in separate subsidiaries, with the operating companies paying to use the trademarks, lease the equipment, and rent its offices.

What are the advantages of New Vision International Holding Limited company structure?

There are different reasons why holding companies are used. Below are a few:

Liability protection

Placing operating companies and the assets they use in separate entities provides a liability shield. The debts of each subsidiary belong to that subsidiary. A creditor of the subsidiary cannot reach the assets of the holding company or another subsidiary.

Control assets for less money

A holding company needs to control its subsidiaries but doesn’t necessarily need to own all shares or membership interests. That allows the holding company to obtain control of another company and its assets at a lower cost than if it had acquired all of the subsidiary’s ownership interests.

Lower debt financing costs

A holding company that has financial strength can often obtain loans for a lower interest rate than its operating companies could themselves, particularly where the business in need of capital is a startup or other venture considered a credit risk. The holding company can obtain the loan and distribute the funds to the subsidiary.

Day-to-day management not required

A holding company can own businesses in a variety of unrelated industries. It doesn’t matter if the owners and managers of the holding company don’t know about those businesses because each subsidiary has its own management to run the day-to-day operations.


Pierre Calleja

Group CEO