Activities of holding companies

NACE v2.1 Code: L64.21

About activities of holding companies

NACE code 64.21 covers the activities of holding companies, which play a crucial role in the broader economy. Holding companies are legal entities that own a controlling interest in one or more subsidiary companies, allowing them to exercise significant influence over the strategic and operational decisions of those subsidiaries. This industry is essential for facilitating the flow of capital, expertise, and resources across different sectors, enabling greater efficiency, diversification, and growth opportunities for businesses.

Production process

The primary activities of holding companies involve managing and overseeing the operations of their subsidiaries. This includes setting strategic direction, allocating resources, monitoring financial performance, and making key decisions that impact the overall group. Holding companies may also provide centralized services, such as accounting, legal, and administrative support, to their subsidiaries to achieve economies of scale and synergies.

Production inputs

The main inputs required for the activities of holding companies are access to capital, financial expertise, and a robust governance framework. Holding companies typically rely on a team of experienced professionals, including executives, financial analysts, and legal experts, to manage the complexities of overseeing multiple subsidiaries. Additionally, access to financing, such as equity investments or debt instruments, is crucial for funding the acquisition and management of subsidiary companies.

Production outputs

The primary output of the holding company industry is the strategic management and coordination of its subsidiaries. This can lead to improved operational efficiency, enhanced financial performance, and increased market competitiveness for the overall group. The outputs of holding companies can have a significant impact on various other NACE codes, as the decisions and actions of the holding company can influence the activities and performance of its subsidiaries, which may operate in a wide range of industries 10.11 (Processing and preserving of meat), nc_link(20.11)(Manufacture of industrial gases), nc_link(46.11)(Agents involved in the sale of agricultural raw materials, live animals, textile raw materials and semi-finished goods).

Revisions to 64.21

Classification codes are adjusted frequently. The code may have been revised or replaced between system versions. The table below shows the history (newest to oldest) of the code 64.21. The most recent 1 version of this code (64.21) is in the NACE v2.1 system (this version):

This page shows the most recent version of code 64.21.

Family tree for activities of holding companies

    graph LR
    A["<a href='/classifications/nace/v2-1/L'>L: FINANCIAL AND INSURANCE ACTIVITIES</a>"]
A --> B["<a href='/classifications/nace/v2-1/L/64'>64: Financial service activities, except insurance and pension funding</a>"]
B --> C["<a href='/classifications/nace/v2-1/L/64/2'>64.2: Activities of holding companies and financing conduits</a>"]
C --> D["<a href='/classifications/nace/v2-1/L/64/21'>64.21: Activities of holding companies</a>"]

    C --> E["<a href='/classifications/nace/v2-1/L/64/22'>64.22: Activities of financing conduits</a>"]

    

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