International Holding Activities Through a Malta Company

A holding company is a parent corporation, limited liability company, or limited partnership that owns enough voting stock in another company that it can control that company’s policies and oversee its management decisions.

An International Holding Company is a viable option for organisations and investors who have global businesses in different countries and jurisdictions. The benefit of having a Holding Company is that it centralises management and control as well as consolidates all subsidiary companies within one group. Therefore, this allows for greater efficiency on reporting obligations.

A holding company can be used to hold many different types of business investments, such as:

  • Shares of Companies
  • Real Estate
  • Intellectual Property
  • Aircraft
  • Maritime Vessels
  • Other Business Investments

You can also use a holding company for holding personal investments such as:

  • Portfolio of Investments
  • Luxury Yachts
  • Private Aircraft
  • Real Estate
  • Other Personal Investments

In summary, a holding company offers many benefits. A Holding Company can:

  • Protect the business from losses if a subsidiary company goes bankrupt
  • Provide an asset protection strategy
  • Give more control over a group organisation
  • Allow for many tax planning opportunities
  • Limit the financial and legal liability exposure
  • Protect your personal assets, because the corporation technically holds those assets
  • Allow for effective succession planning

Why Set Up an International Holding Company in Malta

Malta is a popular choice to set up an international holding company as it offers many tax planning opportunities. For example, the company can be eligible for a tax refund, and there is no taxation in Malta on Dividends or Capital Gains.

The Malta Tax System also has a full Participation Exemption regime rather than adopting the classical tax system. Income and gains derived by Malta companies from qualifying participating holdings may be exempt from taxation in Malta. However, you must satisfy certain conditions and pass the anti-abuse provisions in place for dividend distributions.

Malta has in place more than 70 double taxation treaties in force with countries all over the world. Therefore, this allows for many tax planning opportunities for business across multiple jurisdictions.

Alongside the financial and tax benefits, Malta is a popular choice for setting up an international holding company for the following reasons:

  • Malta is a member of the European Union;
  • Regulated and efficient legal and tax framework;
  • Multi-Lingual Workforce;
  • Legislation in written and spoken in Maltese and English;
  • Malta Company Formation and ongoing administration costs are relatively low;
  • Simple travelling to most European countries as well as the rest of the world.

Contact Us

Are you thinking of setting up an International Holding Company in Malta? Contact us for a free consultation and let Papilio Services help you get set up, hassle-free.

Contact Us

By checking the box, you agree to receive communication from Papilio Services in accordance with our Privacy Policy.

Other Malta Corporate Services