In the U.S., a Holding company is a legal entity that exists to own shares in other companies without conducting operations itself.
A foreign individual or entity can choose to incorporate a holding company in the U.S. This helps them to manage their multiple business interests across different countries using a U.S. holding corporation (“Holdco”). For example, Delaware is a popular choice for holding companies among foreigners. It is renowned for its favorable tax incentives, business-friendly environment, and well-established corporate laws.