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Sat,Jul 27, 2024, 02:29 am Walnut Fri,Jul 26, 2024, 11:29 pm Valletta Sat,Jul 27, 2024, 08:29 am London Sat,Jul 27, 2024, 07:29 am Auckland Sat,Jul 27, 2024, 06:29 pm Information about Malta Moving to Malta Advantages Business Formation Foreign Direct Investment Holding Company Formation Mailing address - Virtual Office Register Malta Comapny Income Tax Consolidation Relocating your Business How to Setup a Company Requirements Malta Company Malta Company Law Service Malta Registered Address Malta Company Fees Accountant and Auditors ![]() ![]() ![]() |
![]() Setting up a Malta holding company involves several steps. Here’s a concise guide to help you get started: Malta Holding Company Formation Choose a Name: Select a unique name for your company. It must not be identical to any existing company name. Draft Memorandum and Articles of Association: These documents outline the company’s purpose, share capital, and internal regulations. Appoint Directors and Shareholders: You’ll need at least one director and one shareholder. They can be the same person. Registered Office Designate a registered office address in Malta. Capital Requirements The minimum share capital requirement is EUR 1,165 (or equivalent in another currency). However, you can choose to issue more shares if needed. Company Registration Submit the necessary documents to the Malta Business Registry (MBR). These include the memorandum, articles of association, and details of directors and shareholders. Pay the registration fee. Tax Considerations Consult with a tax advisor to optimize your tax structure Bank Account Opening Open a corporate bank account in Malta Provide the required documents, including the certificate of incorporation and memorandum. Ongoing Compliance File annual returns with the MBR Maintain proper accounting records Comply with tax obligations Remember that professional advice is crucial during the setup process. Consult with a local lawyer, accountant, or corporate service provider to ensure compliance with all legal requirements. Malta offers several tax advantages for holding companies, making it an attractive choice for international trading groups. Here are some of the key benefits: Double Tax Treaty Network Malta has an extensive network of over 70 double tax treaties. When a Malta company owns more than 10% of the issued share capital of an overseas subsidiary, the withholding tax on dividends received from a treaty partner is typically reduced to 5%. Additionally, as Malta is part of the EU, it benefits from the EU Parent/Subsidiary Directive, resulting in zero withholding tax on dividends from many EU countries. Participation Exemption Qualifying dividends and capital gains derived from a “participating holding” are exempt from Malta tax. Recent changes have reduced the applicable tax rate from 10% to 5%. A holding qualifies as a “participating holding” if it meets specific criteria, such as holding at least 5% of equity shares in a non-resident company or having the option to acquire all equity shares. Exemption from Capital Gains Tax Malta holding companies enjoy exemption from capital gains tax on the disposal of participating holdings. This means that profits arising from the sale of shares in the holding company by non-resident shareholders are not subject to capital gains tax. No Withholding Tax Malta does not impose withholding tax on distributions from the holding company to its parent or shareholders. Additionally, there is no capital duty on the transfer of shares. Maintaining a Malta holding company involves several ongoing costs. Let’s break them down: Annual Compliance Fees Each year, you’ll need to pay annual fees to the Malta Business Registry (MBR). These fees cover the cost of keeping your company registered and maintaining its legal status. Accounting and Audit Costs You must maintain proper accounting records and prepare annual financial statements. Depending on the size of your company, you may need to undergo an annual audit by a certified auditor. Audit fees can vary based on the complexity of your business. Registered Office and Company Secretary Your company must have a registered office in Malta. You’ll need to pay rent or fees for this office space. Appointing a company secretary is mandatory. Their fees will depend on the service provider you choose. Tax Advisory and Compliance Engage a tax advisor to ensure compliance with tax regulations. Their fees will vary based on the complexity of your business operations. Bank Charges and Transactions Maintain a corporate bank account in Malta. Banks charge fees for various services, including transactions, wire transfers, and account maintenance. Legal and Professional Fees Seek legal advice whenever necessary. Legal fees may arise from contract drafting, shareholder agreements, or other legal matters. Miscellaneous Expenses These include communication costs (phone, internet), office supplies, and any other operational expenses. Remember that the actual costs can vary based on the size of your company, the complexity of its operations, and the service providers you choose. It’s essential to budget for these ongoing expenses to ensure smooth company operations. In summary, Malta’s holding companies benefit from a favorable tax environment, making them an excellent choice for structuring international business operations. Do not hesitat to contact us for more information or for a free quote. |
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