Strong Holdings is a company that doesn't have any operations, activities, or other active business. Instead, it owns assets. These assets can be shares of stock in other corporations, limited liability companies, limited partnerships, private equity funds, hedge funds, publicly traded stocks, bonds, real estate, song rights, brand names, patents, trademarks, copyrights, or virtually anything else that has value.
The role of our holding company is basically to hold shares of subsidiary undertakings. It is often not engaged in day-to-day activities. Therefore, the main source of income for this company is the dividend that subsidiary undertakings pay to it. For example Company A (Holding Company) holds 90% of the share capital of Company B. At the end of the month Company B pays a dividend of $1000000. Company A is entitled to 90% of that dividend ($900,000) and this is the income for the organization.
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