{"id":431,"date":"2023-10-18T14:17:24","date_gmt":"2023-10-18T14:17:24","guid":{"rendered":"https:\/\/companyincorporationmalta.com\/?p=431"},"modified":"2024-04-12T09:04:05","modified_gmt":"2024-04-12T09:04:05","slug":"holding-company-in-malta","status":"publish","type":"post","link":"https:\/\/companyincorporationmalta.com\/holding-company-in-malta\/","title":{"rendered":"Holding Company in Malta"},"content":{"rendered":"\n

Malta became one of the most attractive destinations for setting up holding companies in Europe<\/strong>, after the Government introduced the participation exemption a few years ago. Even if it does not have specific laws dedicated to the incorporation of holding companies<\/strong>, Malta has a unique taxation system that turns the country into an ideal location for setting up companies. It is good to know that Maltese holding companies<\/strong> may operate both in and outside the European Union. Support for establishing a holding company in Malta <\/strong>can be provided by our team of <\/strong>company formation agents in Malta<\/strong><\/a>.<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
 Quick Facts<\/th>\n <\/th>\n<\/tr>\n<\/thead>\n
  Legal entities used<\/td>\n\n

Private or Public Limited Liability Company<\/p>\n<\/td>\n<\/tr>\n

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Incorporation method <\/p>\n<\/td>\n

With the Maltese Registrar of Companies<\/td>\n<\/tr>\n
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Incorporation time <\/p>\n<\/td>\n

Around 2 weeks<\/td>\n<\/tr>\n
Advantages<\/td>\n\n

It can operate within or outside EU<\/p>\n<\/td>\n<\/tr>\n

Precautions<\/td>\n\n

 Employer number required<\/p>\n<\/td>\n<\/tr>\n

Shareholding structure<\/td>\n\n

1 shareholder<\/p>\n<\/td>\n<\/tr>\n

Minimum Capital<\/td>\n\n

EUR1,200 for private LLC;<\/p>\n

EUR46,000 for public LLC<\/p>\n<\/td>\n<\/tr>\n

Taxation<\/td>\n\n

0% tax on dividends and capital gains<\/p>\n<\/td>\n<\/tr>\n

Control <\/td>\nForeign ownership available<\/td>\n<\/tr>\n
Accounting and Reporting  <\/td>\nAnnual accounts submitted to the Maltese Government<\/td>\n<\/tr>\n
Number of double taxation treaties <\/td>\nMore than 70<\/td>\n<\/tr>\n
Company name <\/td>\n Must be unique and approved by Registrar of Companies<\/td>\n<\/tr>\n
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Share capital structure <\/p>\n<\/td>\n

No restrictions on currency; can be in any denomination <\/td>\n<\/tr>\n
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Holding company activities <\/p>\n<\/td>\n

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– Holding investments;<\/p>\n

– managing subsidiaries.<\/p>\n<\/td>\n<\/tr>\n

Accounting standards <\/td>\nFollow International Financial Reporting Standards (IFRS) <\/td>\n<\/tr>\n
 Annual filing requirement<\/td>\n\n

 Financial statements and annual return<\/p>\n<\/td>\n<\/tr>\n

Corporate tax rate <\/td>\n\n

Flat rate is 35%, but Malta provides a 6\/7ths corporate tax refund for non-resident, non-domiciled shareholders, lowering the effective tax rate to 5%. <\/p>\n<\/td>\n<\/tr>\n

 Dividend Taxation<\/td>\n\n

Exemption for dividends received from subsidiaries <\/p>\n<\/td>\n<\/tr>\n

Registered office <\/td>\n\n

Must have a registered office in Malta <\/p>\n<\/td>\n<\/tr>\n

 VAT registration<\/td>\n\n

Pure holding companies are exempt from Maltese VAT, but the tax might be applicable to intra-community acquisitions of services under reverse charge regulations. <\/p>\n<\/td>\n<\/tr>\n

 Shareholders’ liability<\/td>\n Limited to share capital<\/td>\n<\/tr>\n
Types of assets owned by the holding company in Malta <\/strong><\/td>\n\n

Malta holding companies<\/strong> have the flexibility to hold various assets, including shares, securities, real estate, aircraft, bank accounts, and intellectual property, as well as personal assets like yachts, residential properties, and artworks. <\/p>\n<\/td>\n<\/tr>\n

 Requirement for local bank account (Yes\/No)<\/td>\n\n

Yes <\/p>\n<\/td>\n<\/tr>\n

Registered agent requirements <\/td>\n\n

No, but it is recommended to hire our company formation agents in Malta<\/strong> for smooth incorporation of a holding company. <\/p>\n<\/td>\n<\/tr>\n

Residency requirements for the founder(s) (yes\/no) <\/td>\n\n

No <\/p>\n<\/td>\n<\/tr>\n

 Assistance in opening a holding company in Malta<\/strong><\/td>\n From initial consultations to navigating legal requirements and paperwork, our team ensures a smooth and efficient incorporation process.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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