The term usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies.
An investment company is a company whose main business is holding securities of other companies purely for investment purposes. The investment company invests money on behalf of its shareholders who in turn share in the profits and losses.
Holding companies allow the reduction of risk for the owners and can allow the ownership and control of a number of different companies.
Investment and Holding companies are often very useful in meeting the constantly changing tax planning needs of shareholders and investors. We assist our clients in proper tax planning including calculating and reporting all investment transactions.