UK Holding vs Cyprus Holding for a Malta Trading Company

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Has anyone worked with a UK Holding for a Malta Trading? I know people generally pair a Cyprus Holding with a Malta trading. But I think the UK might have the following advantages:


It's more cost-effective and leaner to manage.
It's outside of the EU and less likely to be affected by ATAD3.
It has pretty much all the advantages of a Cyprus setup, except if you had multiple EU subsidiaries under the holding. Then access to EU treaties is simpler with Cyprus.
Banking access is probably better, as is the general reputation in the business world.
It is assumed to be a UK tax resident company by incorporation, and Malta most likely doesn't care whether it's UK or Cyprus.
Wife is happy with a trip to London once in a while. (Plus, I have a couple of clients there)
Thoughts?
 
UK is fine and if you can find banking for the Malta operating entity, banking shouldn't be much of a problem for a holding company (whether it's UK or Cyprus).
 
Wise and Revolut are valid options for your entities, same goes for Zen and Airwallex.
 
We have the same structure. Works well.

Revolut opened easy on the UK holding.

Good thing is that you can receive TAX refunds directly on the UBO’s account instead of receiving it in the holding’s account.
 
Wise, Revolut, Airwallex and Currenxie can all open for UK Holding LTD
 
umbear84 said:






We have the same structure. Works well.

Revolut opened easy on the UK holding.

Good thing is that you can receive TAX refunds directly on the UBO’s account instead of receiving it in the holding’s account.

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Thanks for your feedback, that's great.



For how long did you have this structure in place?



Also, I assume you are not working with a fiscal unit since you're talking about a refund - how long did it take? I read the first year is relatively fast, then they take longer and longer, up to a few months.
 
It’s three years now. Yes, you’re correct not fiscal unit.

First refund after 6 months, second still waiting (should arrive soon).
 
umbear84 said:






Good thing is that you can receive TAX refunds directly on the UBO’s account instead of receiving it in the holding’s account.

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You mean the tax refund belonging to the Holding company goes to UBO's personal account?
 
alley said:






You mean the tax refund belonging to the Holding company goes to UBO's personal account?

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I am interested in the same - is the UK Holding set as dormant? As in, nothing flows through it? Also, if this is true, is this the reason not to do the fiscal unit?
 
vs90 said:






I am interested in the same - is the UK Holding set as dormant? As in, nothing flows through it? Also, if this is true, is this the reason not to do the fiscal unit?

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No, the UK holding is not set as dormant. As for the fiscal unit, the reason we’re not using it is because, in theory, if you get the full refund, you can’t immediately remit it to Malta. So it’s more about practicality. Hope that clears it up,assuming that’s “true” enough for you.
 
umbear84 said:






No, the UK holding is not set as dormant. As for the fiscal unit, the reason we’re not using it is because, in theory, if you get the full refund, you can’t immediately remit it to Malta. So it’s more about practicality. Hope that clears it up,assuming that’s “true” enough for you.

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Thanks for this. I don’t have to necessarily remit, so a fiscal unit might make more sense.



I DM’ed you to ask whether you know reliable providers with experience with this structure.
 
umbear84 said:






Yes, exactly.

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Okay, that’s strange. Normally, the funds should go into a bank account that belongs to the holding company, not the individual owner. In most countries, doing it the other way wouldn’t even be legal.
 
alley said:






Okay, that’s strange. Normally, the funds should go into a bank account that belongs to the holding company, not the individual owner. In most countries, doing it the other way wouldn’t even be legal.

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Although the bank transfer might go directly to the UBO, the UK holding is in an active state, and the funds are recorded as income in the holding company's journal, which is then audited as such and subject to UK company taxation.
 
aragon said:






Although the bank transfer might go directly to the UBO, the UK holding is in an active state, and the funds are recorded as income in the holding company's journal, which is then audited as such and subject to UK company taxation.

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still strange way to handle it, agree with @alley
 
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