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Why is Malta ideal to setup your holding company?
- a full EU member and hence entitles residents to benefit from the EU Directives
- embraces a continually expanding network of double taxation treaties
- offers the participation exemption (see fact sheet) which enables Maltese holding companies to incur a 0% tax rate on income received
- offers the possibility of tax refunds which could be claimed by foreign shareholders
- withholds no tax on payments of interest, dividends, interest and royalties
- exempts various transfers from capital gains tax and duty
- offers the possibility for expenses incurred in the production of income including interest incurred to acquire or finance investment to be claimed as a deduction
- offers the possibility for non-capital losses to be carried forward and written off against future income on an indefinite basis
- does not have any CFC, thin capitalization or transfer pricing regulations
- enables the setting-up of companies with a minimum authorized and issued share capital of €1,165 out of which only 20% needs to be paid
- offers the possibility to avoid the need to prepare consolidated (group) financial statements.
What activities may be carried out by a Maltese Holding Company?
- Our law does not limit the type of activities that Maltese Holding companies could carry, and such activities may include:
- Holding of shares and types of participations in resident and non-resident companies
- Carry out financing activities and treasury operations
- Holding and leasing of brands, trademarks, trade-names and other intangible assets
- Holding and leasing of real estate situated in and outside Malta
- Providing management and related services to related and non-related affiliates
- Any other trading activities
Setting-up your Holding Company in Malta
A holding company may be incorporated either as a private or a public company. Companies registered in Malta are governed by the Companies Act and its subsidiary legislation which are fully compliant with EU Law. Single shareholding companies could be setup, but this does not apply for corporate shareholders. Incorporation of a Maltese company requires the payment of initial registration fees to the Registrar of Companies. Such fees would vary according to the authorised share capital of the company.
Maltese law does not include any substance requirements and there is no particular need to have Maltese directors or registered employees. Substance may nevertheless be required in order to proof that the company is being effectively managed in Malta and henceforth tax resident in Malta.
How we can be of assistance to you?
last updated on: 18th February, 2014
- Analyzing and advising you on the most optimal structure/s
- Obtaining Advanced Revenue Rulings from the tax authorities to provide greater assurance for your structure
- Undertaking due-diligence for your existing or new corporate/personal financial affairs
- Assisting with the company formation
- Fulfilling your registered office needs
- Preparing statutory accounts and office back-up duties
- Fulfilling your statutory audit needs
- Fulfilling your tax and VAT compliance needs
- Providing secretarial and administrative support