Company Value Creation

In the globalised world we live in today with numerous cross-border transactions taking place every minute, it has become relatively easier to decide where to set-up shop. Re-location or incorporation of a company in a jurisdiction other than the country of residence of the Ultimate Beneficial Owner is, today, a normal occurrence.

In most cases, companies established in foreign jurisdictions are used in order to benefit from a particular legislation that will help their business activity commence or simply to benefit from favourable taxation conditions or double tax treaties offered in the respective jurisdiction.

Ultimately, company substance refers to the respective company’s economic activity. It intertwines with value creation, which most notably shows that the management and day-to-day control of the company is the jurisdiction of its tax residency.

Company substance therefore plays a key role in its structure and efficient international tax planning. Get to know more on how we can help you and why your company substance decision matters.

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Company substance plays a major part in determining its structure and international tax planning strategies. Company substance is however also being placed as a pivotal determining point by banks and authorities alike. Your company should not be in a position to be rejected from opening a bank account due to its lack of company substance in the respective jurisdiction.

The Organisation for Economic Co-operation and Development (OECD) in its base erosion and profit shifting (BEPS) action plan has highlighted the importance of company substance and having its value creation in the respective jurisdiction that it is operating in.

In line with the OECD’s determination, banks and institutions have started placing company substance as a central part during the application stage. Ultimately, the economic world is shifting importance to the economic and operational reality of a corporate structure, requiring physical and actual presence.

Valuation of company substance is carried out on a case-by-case basis. It is however wise to keep in mind the below points, which assist you in determining whether company substance in the respective jurisdiction is satisfactory or otherwise:

  • Full-time local employee/s;
  • Local Office (different from Corporate Service Provider, Law firm or Accountant address);
  • Assets held and registered in incorporating jurisdiction;
  • Board of Directors composition (50% being nationals or permanently resident in incorporating jurisdiction);
  • Ultimate Beneficial Owner being a national or permanent resident of incorporating jurisdiction and;
  • License to operate granted by the relevant local authority, if applicable.

E&S Group assists our clients to tailor make their companies to meet these required standards for company substance while respecting and adhering to the company’s operations.

Office Space

E&S provides office spaces that are fully operational and include all the basic requirements, such as phone and internet connections, desks and boardroom access. The Offices are designed in an efficient way of having all the features of a fully functional office space for a considerably lower cost than other alternatives.

Recruitment Service

Should you require to employ staff to enhance your company substance, E&S Group may assist you in recruiting the necessary individuals. We may also provide assistance in the monthly computation of tax and social contributions of the employees through our payroll services.

Relocation to Malta

Our team is equipped to assist you in relocating to Malta either through self-sufficiency, employment or any other attractive residency programmes offered in Malta.

Individual or Corporate Directors

This service is subject to a case-by-case analysis and depending on the business activity and necessary risk assessments. E&S would require holding 2 – 4 board meetings per year and ensure that these are documented and stored. Directors would also require control and access to any local or offshore bank accounts.

TAX Advise

Our advisory team is willing and able to review your current structure and see how it may be improved or amended to ensure that it is working in the most tax efficient manner and operating within all legal framework.

Testimonials

"According to our experience, E&S Consultancy team is made up of well-trained and skilled professionals who are always there to satisfy your business needs with reference to Maltase law. Their work is well organized and carried out in a precise and timely manner. I look forward to continuing my cooperation with E&S Consultancy."

Giorgio Crotta & Marco Compagnino - FIDINAM & Partners

"E&S assisted us with various transactions related to the expansion of our client's global structure. They have provided reliable tax advice; their expertise and efforts have been commendable. We would recommend E&S as an effective service provider."

Mitchell B. Kops & Jill Kelly - Withers Bergman

“E&S Consultancy really provides quality advice with commercial understanding. I have never experienced such a combination of know-how, pro-activeness and entrepreneurial thinking from any advisor. We are very impressed by the professionalism, attention to detail and efficiency of their staff. E&S Consultancy is an excellent firm which knows how to look after its customers."

Florian Karrer - Walters & Karrer Internacional

"Christian Ellul of E&S Consultancy has assisted us with advising on a number of transactions through Malta with particular tax driven expertise involved. We have found their tax and legal services very professional and efficient, with a client-driven approach and sound value for money investment for clients. We can, therefore, recommend E&S Consultancy as a law firm to be used in Malta."

Javier Morera - Broseta Abogados

"I've known E&S Consultancy for many years. They are knowledgeable, friendly and extremely helpful. Their team of experienced professionals has always offered courteous and immediate assistance. They are the best!"

Florian Karrer - Walters & Karrer Internacional

"We are happy to have E&S Group as our legal and transaction consultants. Their reliable and prompt advise on Maltese regulations and requirements has been extremely helpful throughout. Through our interactions with Mariella, Deborah and Anton among others, we find their team to be courteous, skilled, and promptly available to assist us as needed."

Prashanth Swaminathan, CEO of XDAT

“Having E&S as a reliable and trusted firm in Malta handling all the complexities of our corporate operations has been a real pleasure. I would recommend E&S Consultancy to anyone who is seeking the right partner when setting up in Malta"

Eric Benz, CEO of Changelly

"Applying for the MPRP is a complex project but with E&S team, the whole process didn’t seem to be as complex. The team first explained the process and then created a very detailed work activity tracker explaining each activity clearly. The team was very quick to respond to any clarifications and gave us confidence, helping in every step to make the process doable. One of the key areas for E&S’ success in guiding us was the painstaking detailed documentation and steps to be followed. Moreover, the process moved fast, and we got our approval the first time, in one shot. I would strongly recommend E&S for MPRP process as with them, you will get it done successfully and faster than others.  For me, I see the full form of E&S as Efficiency and Success for its clients."

Rangin Lahiri - CEO & Founder of YVC Europe Ltd

"E&S provides comprehensive, holistic and dedicated professional services related to company incorporation, Advisory, Risk & Compliance, Tax & Legal, Accounting and others. In the past 6 years, I have used most of these services and the company has very competent employees and professionals who understand the scope of the work and seek to deliver excellence in all the tasks they adhere to.

E&S can be considered as a one-stop shop services provider especially for start-ups. I will not hesitate to recommend E&S to others who want to use the professional services they offer due to their service oriented, and high level of professionalism."

Michael Gatt – Global Gaming Group (CFO)

"I always feel at ease when E&S’s legal team answers our Human Resource questions from the perspective of the company. They are not only very responsive to any questions, but also extremely patient. E&S are aware of the requirements of our organisation and, if they foresees any issues, advises us accordingly. I wholeheartedly recommend E&S Group to my other co-workers with particular reference to Dr Anthea and Dr Jade who are very reliable to handle inquiries."

Kathleen Dilley - Royce Technology

"We have had the pleasure of working with E&S since 2009, and their commitment to delivering high-quality results with a meticulous and professional approach has made them an invaluable partner in our long-standing collaboration."

Anna Davies at ANCROFT Corporate Consultants, London, UK

We have worked with E&S Group for the last 18 months and we have found the people working there to be experienced and knowledgeable, in particular Dr. Deborah Vella and Nicole Said, Director and Head of Corporate Administration respectively. Both are professional and great to work with.  We hope that we can continue our collaboration for many years to come."

Mr Stephen Balzan, Director at ACT Advisory Services (2023)

"We've been honoured to cultivate a robust partnership over several years, focusing mainly on joint efforts with Dr. Deborah and Dr. Jade. The highlight of our collaboration is not just their expansive legal proficiency, but also their steadfast dedication to upholding the highest standards of professionalism. We deeply appreciate our straightforward and clear communication, underpinned by mutual understanding and respect, which consistently prioritizes the requirements and interests of our shared clientele."

Mr Ali Zarzouri, Business Development Manager at Malte Conseils (2023)

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