Investments Holding Companies in Malaysia

An investment holding company in Malaysia is a company that is engaged in the business of holding shares of other companies for the purpose of deriving income or capital gains. The company may also provide management and other services to its subsidiaries.

The most common form of investment holding company in Malaysia is the private limited company. This type of company is limited by shares and has a maximum of 50 shareholders. The company must also have a minimum paid-up capital of RM2 million.

The main advantage of using a private limited company as an investment holding company is that it offers limited liability protection to its shareholders. This means that the shareholders are not personally liable for the debts and liabilities of the company.

Another advantage of using a private limited company is that it is easier to raise capital through the sale of shares. This is because investors are more likely to invest in a company that is limited by shares.

The main disadvantage of using a private limited company as an investment holding company is that it is subject to Malaysian income tax. This means that the company will be required to pay tax on its profits.

If you are planning to set up an investment holding company in Malaysia, it is important that you seek professional advice to ensure that you comply with all