Holding Companies Companies in Malaysia

A holding company is a company that owns other companies' outstanding stock. A holding company usually does not produce goods or services itself; rather, its purpose is to own shares of other companies to form a corporate group. A holding company can also be defined as a company that has controlling interest in another company.

In Malaysia, holding companies are regulated by the Companies Act 1965. A holding company must have a minimum paid-up capital of RM2 million. A holding company is not allowed to hold more than 50% of the shares in any company unless it is a wholly owned subsidiary.

A holding company is allowed to conduct the following activities:

1. To invest in shares, debentures, bonds, securities, real estate or other properties;

2. To provide financial assistance to companies within the group;

3. To act as a trustee or agent;

4. To hold shares in a company as nominee;

5. To carry on business of merchant banking, underwriting or insurance; or

6. To undertake any other activity that is incidental or conducive to the attainment of the objects of the company.