Lin Ruotang hesitantly said, "Generally, there are three main purposes for forming a group company. First is to mitigate risk. A group company can use holding methods to isolate business companies from the personal risks of the owner, thereby reducing your risk as an owner."
"The second is resource integration. A group company can integrate various resources through direct or indirect control, thereby enhancing brand promotion and improving the overall competitiveness of the enterprise."
"Third is tax optimization. By consolidating the financial statements of its subsidiaries, a group company can reduce its tax burden and control costs, while still keeping the profits of its subsidiaries within the group in the form of dividends."
