To put it simply, a Corporation like your ‘Holding Company’ can own almost any Investment a Canadian Individual can, with the exception of Registered Investments, like an RRSP or TFSA. The Question then becomes, what is the principle reason, your ‘Holding Company’ is Investing?
The main difference between Personal Investments and Corporate Investments is that your ‘Holding Company’ is not paying personal income tax before the Investment is purchased. By choosing to invest with your Corporation or ‘Holding Company’, there is an immediate saving by not incurring personal income tax, subsequently producing a higher ROI (Return Of Premium). Let’s say you have $10K in your ‘Holding Company’. Your ‘Holding Company’ can buy an Investment with the $10K. Or you pay yourself the $10K, incur personal income tax and then buy the Investment.
Which seems better to you? It is obvious that you are going to have less to invest after you have paid Personal Income Tax, based on your Marginal Tax Rate. As you can see, there are many Tax Benefits in owning a ‘Holding Company’