IHC Company Guidance

Company Type	Time to Incorporate	Cost
IHC	1 week	£2540

Time required for incorporation

The incorporation of a Maltese company usually takes up to a week. Once the Maltese Registrar of Companies has all necessary documentation and information, the process may take as little as 24 hours.

Share Capital

A private company has a minimum authorised share capital of €1,500. The authorised share capital shall be subscribed by at least two persons. This should be fully paid-up.

Where the authorised share capital is equal to the minimum stipulated by law, as aforesaid, it must be fully subscribed in the memorandum. Where it exceeds such minimum, at least that minimum shall be subscribed in the memorandum.

Capital & Financial Information

Your Maltese company does not have to keep records in Malta, except for the Register of Shareholders and the Register of Directors. Financial Statements need to be lodged with the tax authorities in Malta and with the Company Registry. The accounts of the company need to be audited.

Advantages to Incorporating your IHC

The Incorporation of Maltese International Holding Companies offers many advantages:

• IHC's hold shares and/or receive royalties and interest from other companies
• IHC's pay no tax on dividends received from a participating holding
• IHC's pay a low tax rate of on royalties or interests received
• No withholding tax on the distribution of dividends from the IHC
• Effective zero tax rate on profits from a subsidiary with participating holding
• Complete anonymity of the beneficial owners
• Conformant with EU & OECD standards
• Not a tax evasion vehicle - annual audited accounts are submitted to the Inland Revenue Dept
• No Withholding Taxes on the distribution of dividends
• The possibility of confidential beneficial ownership

Non-resident shareholders of a Maltese holding company which has a participating holding in a non-resident company qualify for a full refund of the Malta tax paid by the Maltese company on income arising from these foreign holdings. Such refund is triggered upon the distribution of this income to the non-resident shareholders of the Maltese company. A holding is considered a participating holding where the Maltese company:

• Holds at least 10% of the equity shares of a non-resident company
• Has a shareholding which exceeds €1,164,500 (approx US$1.5 million) in a non-resident company
• Is entitled to sit on the Board of Directors of the non-resident company
• Is entitled at its option to purchase or has the first right of refusal on a disposal of the equity shares of the non-resident company
• Holds the shares in the non-resident company for the furtherance of its own business