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This article unearths holding hompany from legal perspective. This study finds out that the establishment of holding company gives some benefits that, in turn, upgrade the ethos of a company, i.e: (a) operational system is more efficient; (b) independent risk is negated; (c) the decision is more accurate so that the goals will be more efficiently reached. The responsibility of holding company to its sub-company is actually limited based on share. Nevertheless, as the contractual relationship is established, according to 1995 Limited Company Constitution, the responsibility can be extended.