In the globalized 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.
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;
- License to operate granted by the relevant local authority, if applicable.
E&S Group assists our clients to tailor make their companies meet these required standards for company substance while respecting and adhering to the companies operations.
Providing 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.
Should you require to employ staff to enhance your company substance, E&S Group may assist you in recruiting the necessary individuals and 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
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.
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.
Nicole joined E&S Group in February 2016 to form part of the Front Office team. Her main duties included the day-to-day administration of the group. She had then been promoted to head the administration team as an Executive Secretary. Over the years Nicole had contributed to the overall efficiency of the firm by ensuring administrative duties were carried out in a timely and effective manner. Nicole was promoted to the corporate Services’ Department in 2018 where she began assisting thoroughly the corporate team on incoming daily requests. Today Nicole is well versed in company formations, KYC, takes also particular interest in employment matters and assists the Client Relationship Manager with iGaming applications.
With the recent considerations taken by Management, Nicole has been promoted to Head the Corporate and Administration team whereby whilst she will continue to hold a portfolio of clients, Nicole will also oversee and supervise the quality of work carried out by the team on a day to day basis.
Nicole is fluent in English, Maltese and is proficient in Italian.
Phone:+356 2010 3020
Dr. Deborah Vella
Deborah graduated as Doctor of Laws in 2015, admitted to the bar in 2017 and has been working with E&S Group for the past six years within the Corporate and Legal Department. Her main areas of practice are corporate and commercial law. Deborah also takes particular interest in gaming, employment, residency matters and intellectual property issues. In the professional field, she is subscribed as a member of the Malta Chambers of Advocates and the Malta Institute of Taxation where she has read the Professional Certificate of Taxation. In 2017, she took a managerial role within E&S Group heading the corporate team. Her responsibilities were managing and supervising the corporate team, as well as assisting with legal expertise and client relationships together with the Board of Directors. In the first quarter of 2019 Deborah continued to exercise her abilities and corporate expertise by heading also the Corporate Legal Team.
In light of the above, the Directors have promoted Deborah to be the Chief Business Development Manager of E&S Group. Whilst she will continue to be of support towards the corporate and legal team within the firm, her main focus will shift to being the interface with top tier clients and ensuring that such are serviced in the best possible way. Deborah will nonetheless continue to oversee and supervise all that is related to gaming, employment and IP. As the company’s CRM she will also be engaged in a business development role which involves the planning and executing of offline business development and marketing for the Group.
Deborah is fluent in English and Maltese with a proficient understanding of Italian.
Deborah specializes in corporate, commercial, restructuring, gaming, tax, IP and private client matters.
Phone:+356 2010 3020
Jessica joined E&S group as a Junior Corporate Administrator. Prior to joining E&S Group Jessica worked with the Times of Malta, a local English language newspaper published by Allied Newspapers Limited. Her role was handling client bookings, advertising allocations and pricing, as well as providing customer support. Jessica holds a Bachelor of Arts (Honours) in Business Enterprise from Malta College of Arts Science and Technology (MCAST) as well as a BTEC Higher National Diploma in Business Enterprise from Malta College of Arts Science and Technology (MCAST).
Jessica is fluent in English and Maltese.
Phone:+356 2010 3020