A holding company in simple terms is a company that doesn’t have any operations or activities. However a holding company is created to hold, own and protect assets.
An international holding company in Malta can be used for many reasons. Holding Companies can hold shares, securities and assets such as:
There are many fantastic tax planning and strategic planning opportunities for investors. Here are six benefits of having a corporate holding company in Malta.
If one of the subsidiary companies goes bankrupt, the bank and lending institution cannot legally pursue the holding company for compensation. However, you can expect the value of the holding company will decline as it will experience a loss in assets.
A parent corporation might structure itself as a holding company to create subsidiaries for each of its business lines. Therefore, this protects not only the parent company but also, limits loss if a subsidiary were to fail.
Instead of a parent company spreading itself too thin; they can reduce the exposure by basing certain subsidiaries in new and more beneficial jurisdictions.
By consolidating all subsidiary companies within one group, it allows for greater efficiency in reporting obligations as well as a simple structure to manage the subsidiary businesses.
Malta does not levy any withholding taxes on dividends, interest, royalties or liquidation proceeds, paid or distributed to non-residents.
Creating a Holding Company in Malta can be a very simple and straightforward process. Contact us for a free no-obligation consultation and we will discuss any queries you have. Enquire with our team directly by filling out our short enquiry form below. We will reach out to you within 24 hours.