551112 - Offices of Other Holding Companies
If you’re navigating the complex world of government contracting or industry classification, understanding NAICS code 551112 is essential. This code represents Offices of Other Holding Companies, a unique sector within the Finance and Insurance industry that plays a crucial role in corporate ownership and investment management.
What is NAICS Code 551112?
NAICS code 551112 covers establishments primarily engaged in holding the securities or financial assets of companies and enterprises. The main purpose of these establishments is to own a controlling interest or influence management decisions without actively managing the day-to-day operations of their subsidiaries or investments.
In simpler terms, companies classified under this code act as parent organizations or investment holding companies, focusing on ownership and oversight rather than operational management.
Sector: Finance and Insurance
NAICS 551112 falls within the broader Finance and Insurance sector, which includes businesses focused on managing money, assets, and investments. Specifically, offices of other holding companies deal with ownership structures and investment portfolios rather than consumer financial services or insurance underwriting.
Typical Business Types and Activities
Establishments under NAICS code 551112 typically include:
- Parent companies holding controlling interests in one or more subsidiaries
- Investment holding companies managing diversified portfolios of corporate stock or assets
- Companies whose primary activity is the ownership and strategic oversight of their subsidiaries without engaging in daily operations
These companies influence management decisions, set high-level strategies, and allocate resources but leave operational management to subsidiary management teams.
Size Standard for NAICS 551112
For small business classification and government contracting eligibility, the size standard for NAICS 551112 is based on annual revenue:
- $45.5 million dollars in average annual receipts
Businesses that fall below this threshold may qualify for small business benefits, including contracts set aside by the U.S. Small Business Administration (SBA).
Examples of Businesses Under NAICS 551112
To put this into perspective, here are examples of business types that would classify under this NAICS code:
- A parent corporation that owns majority shares in a diverse group of companies across different industries but does not manage daily operations
- An investment holding company focusing on acquiring shares or interests in other companies to influence their policies or direction
- A corporate headquarters responsible for financial oversight and strategic planning for subsidiaries
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Frequently Asked Questions (FAQs) About NAICS Code 551112
What is the primary activity of businesses in NAICS 551112?
Businesses primarily hold securities or financial assets to own controlling interests or influence management decisions without engaging in daily operational management.
Is an investment firm considered part of NAICS 551112?
Investment firms that actively manage portfolios typically fall under a different NAICS code. NAICS 551112 covers holding companies that do not actively manage operations but hold controlling financial interests.
What is the SBA size standard for this NAICS code?
The size standard for NAICS 551112 is $45.5 million dollars in average annual receipts for eligibility as a small business.
Can a company with multiple subsidiaries be classified under this code?
Yes, parent companies managing controlling interests in subsidiaries without daily operational management fall under this NAICS code.
How does NAICS 551112 differ from other holding company codes?
NAICS 551112 specifically refers to offices of holding companies that do not operate the businesses they own, differentiating from holding companies involved in active management or specialized finance services.
Understanding NAICS code 551112 is vital for businesses in the finance and investment sectors, especially when seeking government contracts or industry-specific opportunities. This classification not only defines the scope of holding companies but also helps organizations align their business activities with the appropriate industry standards.
