Investment Hoding Companies in Malaysia

An investment holding company is a company that provides financial and managerial support to its subsidiary companies. The holding company may be a parent company, a special-purpose entity, or a joint venture. The key characteristic of an investment holding company is that it does not have an operational business of its own; rather, its purpose is to invest in and provide support to its subsidiaries.

There are many reasons why a company might choose to structure itself as an investment holding company. One reason is to gain access to a wider pool of capital, as the holding company can issue equity and debt securities to investors. This can provide the subsidiary companies with the funds they need to grow and expand their businesses.

Another reason for setting up an investment holding company is to provide greater flexibility in how the subsidiary companies are managed. The holding company can appoint its own board of directors and management team, and it can also buy and sell stakes in the subsidiary companies as it sees fit. This can provide the subsidiary companies with the stability and support they need to grow and prosper.

The investment holding company structure also has some tax advantages. In many jurisdictions, the holding company can enjoy lower tax rates than the subsidiary companies. This can make the investment holding company structure an attractive option for companies