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

The holding company manages the assets of other companies. It acts as a shell company and does not involve in any kind of businesses. Such a company derives at least 80 percent of its gross income from holding the investments and owns more than 50 percent of other companies’ share capital and voting rights. It is considered as a separate legal entity. This means that the company and owner 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 can borrow loans, sue, and 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.

Investment Holding Company

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.