The whole idea of setting an investment holding company in Malaysia is to control and manage the assets of other companies. The holding company acts as the parent company and holds voting shares in the other companies. A holding company is also incorporated for the purpose of owning different types of properties such as real estates and copyrights. A company incorporated in the offshore jurisdiction of Labuan can also be utilized as an investment holding company in Malaysia. The main advantage of establishing a Labuan holding company is exemption form the payment of tax. Further, the company is also not required to submit any audit report.
Investment Holding Company – What Is It
A holding company owns and / or manages the assets of other companies. It acts like a shell company and usually does not involve in any kind of businesses. For instance, such a company can derive 80 percent of its gross income from holding investments and owns more than 50 percent of other companies’ share capital with voting rights. It is considered a separate legal entity. This means that the company and its owners / shareholders are treated as two different individuals and the liability of the shareholders; with respect to the company’s debts; is limited to the share capital contributed by them. An investment holding company in Malaysia is allowed to apply for loans, to sue, and in return, can be sued.
Investment Holding Company – Activities Allowed
An investment holding company can involve in any of the following activities in any combination:
- Hold the investments of their other companies in Malaysian companies or their own country
- Hold the investment of a company that they have newly acquired in Malaysia or anywhere in the world
- Hold investments in securities, equities, stocks, deposits, and loans
- Hold investments in real estates, land, and other immovable properties in Malaysia or anywhere in the world
Setting up an investment holding company in Malaysia helps businesses maximize their returns. A Labuan investment holding company does not have to pay any tax on dividends received. Further, the management fees received by the holding company are exempt from withholding tax.
QX Trust Co. Ltd
As a holder of the license issued by the Labuan Financial Services Authority, QX Trust has the experience and expertise to set up an offshore investment holding company in Malaysia. If you are a business owner and want to establish an investment holding company in Labuan, Malaysia, you just have to get in touch with our customer service professionals. We will provide you with all the necessary guidance and represent you for completing the registration procedure.