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The Maltese Holding Company and the Participation Exemption

What is holding company?

What is a Holding Company?

A holding company is a company that is characterized by its lack of operational activities but is set up to hold, own and protect assets such as (i) real estate holdings, (ii) fixed assets, (iii) aircraft, (iv) maritime vessels, (v) bank accounts, (vi) intellectual property, and (vii) shares in other companies.

Benefits of Opening a Maltese Holding Company

Segregation of Business Activities and Assets

One of the greatest benefits attributable to a holding company stems from the concept of separate legal personality. A number of subsidiary trading companies can be set up under the ownership of a parent holding company, each operating in a separate line of business and having its own separate legal personality. As a result, the assets and liabilities of each subsidiary company will be segregated from the rest. Therefore, creditors of one trading companies will not be able to attack the assets of the parent company or other companies within the structure, offering greater protection of assets and limiting the potential impact of liabilities or financial setbacks in one sector on the overall corporate structure.

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