Holding company
A company whose primary purpose is to hold stakes in other companies. It may be a pure holding (ownership only) or an active holding (direct involvement in subsidiary strategy). In France, a holding is typically structured as a SAS or SARL interposed between the shareholders and the operating companies.
In practice
A properly structured holding lets profits flow up from subsidiaries via the parent-subsidiary regime at roughly 1.7% effective tax, pools cash through inter-company treasury agreements, and prepares ownership transfers via the Pacte Dutreil regime. A founder drawing 300,000 euros in dividends directly bears about 30% flat tax; through a documented active holding, that burden can fall below 5% as long as the funds stay reinvested within the group.