Companies Calling Themselves "Holdings" Approximately Double in 10 Years - Reading the Spread of Management That "Separates and Bundles" Companies from the Registrations of 24,000 Companies Nationwide

Compalyze Inc. (Headquarters: Kusatsu City, Shiga Prefecture, CEO: Takashi Suzuki), which operates the corporate database "Compalyze," conducted a survey analyzing the trends of companies whose trade names include "ホールディングス" (Holdings), "HD," or the English notation "Holdings," using the National Tax Agency's corporate number data (all currently active registered companies) as a proxy indicator for holding companies.

The analysis revealed that the number of new companies established with these names has approximately doubled between 2016 and 2025, and their spread extends beyond the group reorganizations of large corporations. The main driver of this increase is "conversion" of existing companies rather than new establishment. While "Holdings" companies structured as limited liability companies (LLCs), which are not obligated to publish financial statements, are accumulating as vehicles for foreign companies and funds, over 2,000 companies that became holdings companies have since been dissolved.

This survey organized the "shift to a holding company structure" as indicated by company names, based on facts verifiable from registrations concerning number of companies, conversions, locations, legal forms, and dissolutions.

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Source: Companies Calling Themselves "Holdings" Approximately Double in 10 Years - Reading the Spread of Management That "Separates and Bundles" Companies from the Registrations of 24,000 Companies Nationwide

Survey Summary

New establishments of companies calling themselves "Holdings" have approximately doubled, from 960 companies in 2016 to 1,999 companies in 2025. Their proportion of all newly established companies has also risen from 0.94% to 1.43%.

Of the approximately 24,000 existing companies (23,627), at least 3,146 companies (13.3%) were originally registered under a different name and subsequently changed their trade name to "○○ Holdings." The shift to a holding company structure is seen to be spreading more through "conversion" than "new establishment."

34.0% (8,027 companies) are concentrated in Tokyo. This concentration, which exceeds the overall Tokyo share of 24.4% for all companies, is believed to reflect the concentration of "control and management functions" rather than business operations.

Approximately 40% (40.3%, 564 companies) of the 1,400 "Holdings" LLCs (5.9%) are foreign-affiliated or use English names. They serve not as command centers, but as vehicles for foreign companies' Japan operations or as funds.

A cumulative total of 2,489 companies that became holdings companies have since been dissolved or merged. This indicates it is a phenomenon with inflows and outflows, not just an increase.

"Holdings" Companies Have Approximately Doubled in 10 Years

New establishments increased from 960 companies in 2016 to 1,999 companies in 2025. Their proportion of all newly established companies (all 5 types of companies) has also risen from 0.94% to 1.43%, increasing their relative presence.

From 2016 to 2020, there was no significant growth, with around 950 to 1,100 companies established annually. However, starting in 2021, the numbers clearly accelerated to 1,268, 1,419, 1,618, 1,847, and finally 1,999 companies in 2025. This doubling over 10 years has been driven by the growth in the latter five years.

Trend in the number of new holding company (holdings) establishments and their proportion of new companies (Source: Compalyze)

The Main Driver of Increase is "Conversion," Not "New Establishment"

When thinking about the increase in holdings companies, one might imagine a continuous stream of new holding companies being established. However, tracing the registration history reveals a different reality. Of the approximately 24,000 existing companies, at least 3,146 companies (13.3%) were originally registered under names other than "Holdings" and subsequently changed their trade name to "○○ Holdings."

The move from "○○ Co., Ltd." to "○○ Holdings Co., Ltd." occurs through methods such as establishing a new holding company above existing companies to consolidate shares (the "hollow shell method") or in conjunction with the spin-off of businesses. These 3,146 companies represent the lower limit of traceable name change histories (as the system began in October 2015, changes prior to that cannot be tracked), and the actual number of conversions is likely higher. It is highly probable that the spread of holding company structures is occurring more through "rearranging ownership" of existing companies rather than through the creation of entirely new entities.

Concentration in Tokyo is of "Control Functions," Not "Business Operations"

Out of approximately 24,000 companies nationwide, 34.0% (8,027 companies) are located in Tokyo. This means nearly one in three companies is in Tokyo. The Tokyo share for all companies (all 5 types) is about 24.4%, and "Holdings" companies exceed this by nearly 10 percentage points. Major metropolitan areas follow, including Osaka (2,265 companies), Aichi (1,646 companies), Kanagawa (1,249 companies), and Fukuoka (1,040 companies).

Top 12 Prefectures by Number of Companies Calling Themselves "Holdings" (Source: Compalyze)

What can be inferred here is that this concentration in Tokyo may not necessarily be a "concentration of business operations." It is conceivable that local factories, stores, care facilities, and construction companies remain as subsidiaries, with only the holding company placed above them in Tokyo. In such cases, the concentration of holdings companies in Tokyo may reflect the concentration of capital, management functions, and professional services, rather than the concentration of business operations. While the purpose cannot be determined from registration data alone, this interpretation aligns with the nature of the holding company structure.

"Limited Liability Company Holdings" - Vehicles for Foreign Companies and Funds

Looking at legal forms, 90% of holdings companies are stock companies (kabushiki kaisha). Of the approximately 24,000 companies, stock companies account for 21,783 (92.2%). Among the remainder, the notable presence is the 1,400 "Holdings" companies structured as limited liability companies (LLCs) (5.9%). Examining the internal structure of this combination of the weighty name "Holdings" with the lightest legal form, LLC, reveals they are not command centers for large corporate groups.

Breaking down the trade names of LLC holdings companies, approximately 40% (40.3%, 564 companies) are foreign-affiliated or use English names, or include "Japan." LLCs are not obligated to publish financial statements, have a lighter organizational structure, and are compatible with the tax treatment of U.S. parent companies (pass-through taxation), making them a convenient vehicle for foreign companies establishing holding or management companies in Japan. The remainder include vehicles for funds and securitization (SPCs), and structures for domestic owners' asset management and succession. "LLC Holdings" are seen less as command centers and more as vehicles for organizing capital and making it less visible from the outside.

Breakdown of 1,400 LLC "Holdings" Companies (Foreign/English-affiliated 40.3% / Domestic 59.7%, Source: Compalyze)

Not Just Increasing - Holdings Companies Are Also Dissolved

While the shift to holding companies appears to be an upward trend, there is also movement in the opposite direction. Of the companies that have adopted the "Holdings" name, a cumulative total of 2,489 have already been dissolved or closed. The breakdown includes 1,260 companies dissolved due to mergers, 1,112 companies with completed liquidations, and 117 companies closed by the registrar. While new establishments grew from 960 to 1,999 companies, an average of 160 to 290 companies have been dissolved each year.

The fact that dissolutions due to mergers are the most common is significant. This can occur when a holding company is established but is subsequently absorbed into a higher-level company during group reorganizations or M&A activities, thus fulfilling its role. Conversely, there is also active movement where holding companies absorb other companies and grow. Holdings companies appear in reorganization data 2,751 times, with 1,548 cases involving mergers where they acted as the "receiving" entity. The establishment of holding companies is a phenomenon with inflows and outflows, involving formation, dissolution, bundling, and re-bundling, and is not a universally effective solution for all situations.

Trend in New Establishments and Dissolutions/Closures of Holdings Companies (Source: Compalyze)

Pure Holding Company or Business Holding Company - What Employee Numbers Reveal

Holding companies are typically characterized by having few or no employees themselves, with employees placed in their subsidiary operating companies. To the extent ascertainable, 69.0% of holding companies have "unknown" employee numbers, and 22.8% have "10 or fewer" employees, meaning the vast majority do not directly employ staff. This reflects the structure of pure holding companies where employees are with the subsidiaries.

Among these, only 39 companies out of the total 24,000 hold over 1,000 employees at the "parent" holding company level. These can be interpreted as "business holding companies" that intentionally employ staff at the parent company level, which would typically be placed in subsidiaries, meaning they themselves undertake business operations or strong group management functions. Despite sharing the same "Holdings" designation, there is a significant difference in substance between a shell company with no employees and a command center that employs staff.

*This release covers only the main aspects. The full details of data, graphs, and calculation methods for each section are published in the Compalyze Journal article linked below.

▶Full Details of All Data and Analysis Here

Companies Calling Themselves "Holdings" Approximately Double in 10 Years - Reading the Spread of Management That "Separates and Bundles" Companies from the Registrations of 24,000 Companies Nationwide

Survey Overview

Survey Organizer

Compalyze Inc.

Survey Target

All registered companies in Japan (approx. 5.8 million) based on the National Tax Agency's Corporate Number Public Data. New establishment statistics target the 5 types of companies (stock, limited liability, limited partnership, general partnership, unlimited partnership).

Data Collection Period

Annual trend of new establishments is from 2016 to 2025 (as the Corporate Number system began in October 2015, full-year tracking is possible from 2016 onwards).

Data

Corporate number data (establishment, company type, location), registration organizational changes, and supplementary information on business content and employee size for companies identified by Compalyze.

Methodology

New establishments, continuations, and organizational changes are aggregated by company type code. Proportions are calculated with the 5 types of companies as the denominator (this differs from the denominator used in private surveys of all newly established companies, including general incorporated associations and NPOs).

Points to Note

"Number of registered surviving companies" includes dormant companies and not just actively operating ones. Proportions of employee size and industry are trend indicators based on the number of companies for which data was available and may have a margin of error compared to the overall picture.

About Compalyze

Compalyze is a corporate database that integrates public data on companies, including registrations, financial statements, intellectual property, officers, and public procurement, on a comprehensive scale to support decision-making in corporate analysis, sales, investment, and M&A. (https://compalyze.co.jp)

Inquiries Regarding This Release

Compalyze Public Relations Email: [email protected] URL: https://compalyze.co.jp High-resolution images for press use are available upon request.