UAE Holding Companies to Manage EU Risks

UAE Holding Companies

Concerns mainly clients operating Malta Companies …but also Cyprus and other EU Companies or Non EU – Seychelles – Companies with bank accounts in the EU.

Malta
(scroll down for Cyprus and other EU structures)

Use of a “Double Malta-Malta” Structure (Malta Holding Company of another Malta Company – necessary to achieve the 5% effective corporate tax rate in Malta) – Recommendation / Suggestion to improve the corporate structure and avoid the EU banking, confidentiality and financial crisis risks.

We recommend inserting a UAE holding company “above” all existing Malta structures for the following reasons.

UAE – Malta” structure = UAE holding company of Malta subsidiary

The UAE – Malta structure it is the most popular structure among clients recently as a hedge to avoid unnecessary risks.

1. The Malta – Malta structure is less optimal tax-wise than the uae-malta structure.
2. The Malta – Malta structure is less favorable for confidentiality purposes as Malta is under the EU exchange of information regime while UAE is not and has not signed any exchange of information agreements with any other countries.
3. The Malta – Malta structure is problematic for ensuring security of funds in Malta banks, if there is an “EU induced” banking haircut/crisis in Malta in the next few years, as if there is a UAE holding company with UAE bank account, funds can at a click of a button be transferred out without the bank raising compliance issues for the transfer as the transfer is to the holding company (when banks are “squeezed” they overzealously apply compliance procedures to slow down the flight of deposits).
4. It avoids, in these risky times, “putting all our eggs in the same basket”
5. Most local providers promote the Malta – Malta structure for purely commercial reasons as they do not have a presence in other jurisdictions – our firm is in a position to offer improved structures due to its solid international presence and expertise

Cyprus and other EU Corporate structures as well as Non EU – Seychelles – Companies with bank accounts in the EU

For similar reasons (especially 2., 3. and 4.) the same is also recommended generally for other structures.

We recommend inserting a UAE holding company generally “above” all existing EU structures (or non-EU but with EU bank accounts) for the above reasons.