What are benefits of container group of companies?


1

From my understanding, I can register a company with any name (not necessarily product/service name) and launch multiple products/services under it. Plus, I can associate trademarks with this company.

So, I can't see any benefit of running multiple product/service based companies and putting them in a container group of companies. When it comes to brand, master company has generally highest reputation, otherwise it can only decrease reputation of child companies. So, just one company would work.

Correct me if my assumptions were wrong. I am a newbie in this field. What are the benefits of container group of companies?

You can pick US if its necessary.

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asked Aug 29 '12 at 05:02
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Sachin Shekhar
260 points

2 Answers


2

I'm not a lawyer, but I believe that there are (generally positive) liability consequences for separating out activity into multiple companies.

answered Aug 29 '12 at 11:29
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Jeff S
374 points

2

I am not a legal expert, but there are a couple pros\cons to each that I can think of:

Single Company, Multiple Products

  • easily establish brand recognition
  • leverage previous goodwill\expectations in new ventures\products
  • simple accounting
Parent Company, Multiple Subcompanies

  • create different brand expectations
  • good if products\brands come from acquisitions and\or you plan to sell-off individual subcompanies
  • more complicated accounting
answered Aug 30 '12 at 04:54
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Warren
329 points

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