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What are the differences between Active and Passive companies?

An Active company generally refers to an entity that operates an active trade or business with more than 50% active income (gross). These kinds of businesses generally refer to an entity with trading activities like manufacturers, wholesalers, retailers, restaurants and bars, hotels, construction companies, health and social work.

A Passive company generally refers to entities, organisations, or companies that receive income from interests and dividends generated from its assets, including properties, shares, etc.