An asset-holding company with a virtual office in the State of Delaware with the intent to create enough contacts to a geographic location to give the state jurisdiction over the assets in Delaware to avoid taxes in other locations where a company is doing business.
2. Sometimes a holding company is merely a reference to a company that holds passive assets, without conducting other business activities. For example, this is used often to separate active businesses from passive activities. For example, a restaurant that uses a holding company to own the building and a corporation to conduct its going concern activity. This can provide tax and asset protection benefits, to bifurcate ownership in this way.