Investment Holding Company (IHC) vs. Personal Property Ownership: Which is Better?

An Investment Holding Company (IHC) is a type of Sdn Bhd, and its key distinction from personal ownership is that company assets are legally separate from shareholders' personal assets.

This can be crucial in situations such as bankruptcy or death, ensuring that the property remains under the company's control. However, there are pros and cons to each approach.
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Key Differences Between IHC and Personal Ownership
Factor IHC (Sdn Bhd) Personal Ownership

Asset Protection

Company assets are separate from shareholders' personal assets. Personal financial issues (e.g., bankruptcy, death) will not affect the property.

Property is directly tied to the owner's financial status. Bankruptcy or death can affect ownership and inheritance.

Real Property Gains Tax (RPGT)

10% RPGT applies after 5 years.
No RPGT after 5 years.

Corporate Tax Rate

24% fixed tax rate on rental income.
Taxed at individual income tax rates (progressive from 0% to 28%). Lower-income individuals may benefit.

Bank Loan Eligibility

Maximum 70% loan financing.
Up to 90% financing for the first two properties.

Ongoing Costs

Requires annual expenses: secretarial, audit, accounting, and tax filing fees (~RM4,000–RM8,000 per year).

No additional business compliance costs.

Property Transfer & Stamp Duty

No RM10 special stamp duty exemption upon inheritance.

RM10 stamp duty applies when transferring ownership after death (if a valid will exists).

Multiple Owners & Joint Investments

Easier to define ownership and profit-sharing in a structured way, reducing disputes.

Ownership disputes may arise when multiple individuals co-own a property.

Legal Liability

Shareholders are only liable for their investment in the company. If the property incurs losses, personal assets are unaffected.

Owners bear full liability for the property and may be personally impacted by losses.
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When Should You Use an IHC?

You are investing with multiple partners – A company structure clearly defines ownership percentages and responsibilities, avoiding disputes.
You want to protect assets from personal financial risks – If an individual faces bankruptcy or lawsuits, company-owned properties remain separate.
Your property investment is large-scale – For those managing multiple properties or building a real estate portfolio, an IHC may offer better long-term asset management.
When Should You Buy Property Under Your Personal Name?
You want to save on taxes – No RPGT after 5 years, lower personal income tax rates, and higher loan financing.
You want lower ongoing costs – Avoid secretarial, audit, and compliance expenses of running a company.
You plan to transfer property in the future – Personal property can be transferred at only RM10 stamp duty upon inheritance.
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Final Verdict: IHC or Personal Ownership?

For most individuals, buying property under a personal name is now more tax-efficient and cost-effective.
If you are investing with multiple partners or need asset protection, an IHC can still be beneficial.

If you're unsure, consult a company secretary, accountant, or tax professional to evaluate your specific situation before making a decision.

IHC公司是属于Sdn Bhd 的一种，其中一个特点就在于，公司资产与股东/董事的私人资产是无关联的，这是与个人名义产业最不同的一点。若股东或董事发生变故（破产、死亡），产业依旧属于公司名下，不会有有影响。相反的，若是公司产业出现亏损，股东只需要负责自己持股的那部分。如果是个人名下的产业，持有人破产、死亡都会影响到产业的持有。

多人一起购买产业 – 成立公司减少纠纷

如果是与其他人合资联名购买产业，成立公司可以很好的避免大家的纠纷，因为所有的盈利分配都已经清楚写下，有白纸黑字及第三方（公司秘书）见证。

让我们简单的做个总结
在之前，成立IHC的好处是比个人名义购买产业来的多的。但最近，政府正在慢慢把属于IHC的好处削减（或是把个人购买的好处增加），导致现在个人购买产业的好处是多过使用IHC购买的。

我们建议大家，在不是与其他人合资/联名的情况下，还是直接以个人名义购买产业会比较多好处。

如果您正考虑应该使用个人名义或是成立一间IHC公司以购买公司资产，不妨依据您的状况以及以上内容作参考。