The Maltese government greatly supports shipping businesses in Malta. This can be evidenced by the convenient legislations set in place. The registration and operation of a shipping company in Malta is quite simple and more efficient compared to other EU countries.
A lot of investors are opening holding companies in Malta in order to benefit from the participation exemption regime. Holding companies serve as a great avenue for investors who want to hold assets in Malta or participate in other Maltese companies and yet benefit from the same operations and tax planning arrangements as other Maltese companies.
What is a holding company and what does it do
The government of Malta has put in place a set of guidelines on the payment of VAT on leased Yachts. The regulations apply when a company registered in Malta buys a Yacht and decides to lease it to a third party. This system was put in place to help the owners of these luxury vessels to pay their VAT. The VAT payable is calculated from the proportion of time the yatch is supposed to navigate in the EU territory. It also enables them to acquire a certificate cleared of VAT arrears at end of the arrangement.
Malta has a well-evolved financial sector which has contributed to its robust economy over the years. This modernized financial technology business sector, is a product of the country’s proficient labor force and cutting edge IT systems. There has been a tremendous growth of the financial business since its birth in 2010 evidenced by a remarkable growth of 67% in only six years! The first quarter of 2016, marked a staggering 5.3 billion dollars’ worth of the Maltese financial technology businesses.
The Maltese government does not impose any restrictions in regards to the incorporation of offshore companies in the state. Maltese offshore companies are registered companies which operate in Malta but are run by foreign stakeholders. Setting up an offshore company in Malta comes with special benefits, such as lower tax rates as compared to that charged in their native states.
For any investors contemplating expanding into a new market, the pros and cons of establishing a branch or foreign subsidiary will depend on the business benefits as well as the economical and regulatory environment of that particular country. Opening a subsidiary in a foreign land can bring substantial results, such as the expansion of your brand recognition, opening access to new markets and utilizing efficient production processes to manage expenses.
