Holding Company Companies in Malaysia

A holding company is a company that owns other companies' outstanding stock. A holding company usually does not produce goods or services itself; rather, its purpose is to own shares of other companies to form a corporate group. In Malaysia, holding companies are regulated by the Companies Act 1965.

There are many reasons why a company might want to set up a holding company. For example, a holding company can help to diversify a company's business risk by owning shares in companies in different industries. A holding company can also provide a way for a company to raise capital by selling shares to investors.

A holding company is typically a larger and more established company that can provide financial and managerial resources to its subsidiary companies. In return, the holding company can exercise control over the subsidiary companies.

The advantages of setting up a holding company in Malaysia include:

1. Access to a wider pool of capital: A holding company can raise capital by selling shares to investors. This can provide the subsidiary companies with the financial resources they need to grow and expand their businesses.

2. Diversification of business risk: A holding company can own shares in companies in different industries, which can help to diversify a company's business risk.

3.