Investment And Holding Companies in Malaysia

An investment holding company in Malaysia is a company that is established for the purpose of holding shares in another company. The holding company may be a public or private company. The shares in the subsidiary company are held as an investment and are not traded on the stock market. The investment holding company is not allowed to carry on any business activity other than the holding of shares in the subsidiary company.

The shares held by the investment holding company are not subject to any stamp duty. However, the shares are subject to capital gains tax when they are sold.

The investment holding company is not required to prepare financial statements. However, it must keep records of all transactions relating to the holding of shares in the subsidiary company.

The investment holding company is not subject to any tax on the dividends received from the subsidiary company. However, the investment holding company is required to pay tax on the capital gains arising from the sale of shares in the subsidiary company.