When will a holding company satisfy the condition that the “principal objective and activity of the Participation is the acquisition and holding of shares or equitable interests”?
When all of the following elements are met, the Participation will satisfy the criterion that its “principal objective and activity is the acquisition and holding of shares or equitable interests”:
- The holding company should be directed and managed in the relevant country or territory,
- The holding company complies with requirements to submit documents and records to the relevant authority,
- The holding company has adequate personnel and premises, and
- The holding company should not conduct any other non-incidental or auxiliary activities to the acquisition and holding of shares or equitable interests.
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