Inteliumlaw

Company Formation In Malta

Inteliumlaw » Business registration abroad » Company Formation In Malta

Are you thinking about company formation in Malta? If yes, you’ve made the right decision. it has multiple benefits, including:

  • Tax-friendly system: The tax rates for registered companies in Malta are comparatively lower than in European countries. Due to the full imputation system, there is no double taxation on distributed profits.
  • Strategically located: Located in the Central Mediterranean Sea, Malta acts as a gateway between North Africa, Europe, and the Middle East. It provides trading benefits to the companies.
  • Membership of the European Union: Registered Malta companies can enjoy the advantages of being a member of the EU, including access to a single market.
  • Official English language: English is one of Malta's official languages, which creates a supportive ecosystem for international companies.
  • Solid Legal Framework: Malta's legal system is derived from the British Common Law System and Civil Law. This gives businesses a familiar environment.
  • Skilled workforce: The local workforce is educated and has multilingual knowledge. This is an added advantage for companies in sectors like finance, gaming, technology, etc.
  • Business-supportive environment: Malta has some of the business-friendly incentive programs for foreign investors and startups for company formation in Malta.
  • A well-regulated financial services sector: Malta’s robust financial services sector and stable economy offer a perfect business environment for finance companies.
  • Good standard of living: Malta offers a premium-quality life that helps attract and retain talented individuals.

Requirements of Company Setup in Malta

Some of the mandatory requirements for company setup in Malta are -

  • Company Name Approval: The company’s name needs to be approved by the Malta Business Registry
  • Registered Office: A registered office in Malta is a must.
  • Memorandum & Articles of Association are mandatory for company setup in Malta. These documents contain information about the company’s mission and vision, shares and shareholders, etc.
  • Directors & CS: Every private company in Malta is required to have a minimum of 1 director and 1 Company Secretary, while a public company needs to have at least 2 directors.
  • Shareholders: To set up a company in Malta, the company must have a minimum of 1 shareholder, who can be individuals or corporate entities.
  • Bank Account: A corporate bank account in Malta is a must for the share capital.
  • Auditors: Auditors need to be onboard. The first set of auditors is appointed by the directors. Later, the board appoints the auditors during general meetings.
  • Annual Returns: Filing annual returns and financial statements is a must with the Malta Business Registry.
  • Tax & VAT: Applicable Tax and VAT Registration with the Malta Tax Authorities must be done.
  • Business Licenses & Permits: Specific permits and licenses are required to run certain business types.
  • Registration for Data Protection: If the company uses personal data, it must register with the Office of the Information and Data Protection Commissioner in Malta.

Company Registration in Malta: taxation

The tax-related relevance for company registration in Malta is as follows -

  • Corporate Tax Rate: The corporate tax rate in Malta is 35%.
  • Tax Refunds: For shareholders, the effective tax rate is considerably reduced due to the Tax Refund system.
  • No Withholding Taxes: Withholding taxes are not applied to interests, dividends, and royalties.
  • Double Taxation Relief: The country has double taxation treaties with 70+ countries, benefitting international businesses.
  • EU Parent-Subsidiary Directive: EU subsidiaries are exempted from Malta tax under the EU Parent-Subsidiary Directive.
  • VAT Laws: After the Malta Company Formation, businesses need to be compliant with Maltese VAT laws.
  • Participation Exemption: Participating Holding companies are exempted from tax in Malta.

Types of Maltese Companies

Company Formation Malta is possible in multiple formats. Here are the common types available

  • Private Limited Company (LTD): The most common type is a private limited company with a maximum of 50 shareholders. The company cannot trade its shares in public.
  • Public Limited Company (PLC): A Public Limited Company can trade its shares on the market.
  • Branch: A Branch is a company registered outside Malta that has appointed a local representative in Malta to run its business operations.

Process of Company Formation Malta

To register a company in Malta, follow these steps:

  • Company Type Selection: The first step for company formation Malta is to decide on the company type—a private limited liability or a public limited company.
  • Company Name Finalization: The next step is to decide on the company name and reserve it with the Malta Business Registry.
  • Drafting the Memorandum & Articles of Association: The Memorandum and Articles of Association need to be drafted with the required details.
  • Minimum Share Capital: The minimum share capital needs to be deposited in the bank. For a public limited company, it is €46,588 (25% paid up); for a private limited company, it is €1,165 (20% paid up).
  • Company Registration: The Memorandum and Articles of Association need to be submitted to the Malta Business Registry along with the application and other papers.
  • Appointing Directors and CS: The directors and company secretary have to be appointed at this stage per the legal requirements.
  • Registration Fee: The required registration fee, which depends on the business’s share capital, must be paid to the Malta Business Registry.
  • Certificate of Registration: After all the above steps, you will receive your Certificate of Registration from the Malta Business Registry.
  • Tax and VAT Registration: Once the registration process is complete, you need to apply for VAT and Tax registration.
  • Corporate Bank Account: You also need to open a bank account locally with a licensed bank.
  • Appointing an Auditor: Last but not least, you need to appoint an auditor.

Why Choose InteliumLaw for Company Setup Malta?

Seasoned Experts in Maltese setups
We thoroughly understand the complexities of Maltese corporate laws and have local partners that will assist us with more complex questions, which allows us to efficiently handle the process of company setup Malta.

Facilitate a Seamless Registration Process
We facilitate a seamless Malta company formation, which is beneficial for foreign business owners who are not familiar with local procedures.

Customized Advices
All business entities in Malta are required to align their registrations and operations with the Maltese legal and taxation systems. Our custom solutions ensure that your Malta company formation process is fast-tracked.

Our Business Network
We have established ourselves as a pioneering service provider within the Malta corporate, business, and advisory network. This connectivity offers our clients a distinct advantage in their operations.

Service Offered by InteliumLaw

  • Help you with end-to-end Malta Company Formation.
  • Consultancy help and support about the best-fit corporate structure for your business, compliances, etc.
  • Consultancy that helps your business optimize tax planning and comply with local regulation.
  • We also offer regulatory advice to help our clients comply with Maltese corporate regulations.
  • We also help procure the right permits and licenses in Malta to help you run your business in regulated sectors.

Leave Us A Message

And we wil get back to you
Contact Us

FAQ

What are the financial implications of setting up a company in Malta?

The cost varies and depends on the company type, authorized share capital, and more. For details, contact us.

Other than the Malta company setup fees, what costs are involved?

Other than the initial formation fees, there are other costs involved during company registration in Malta. Examples include fees required for opening a corporate bank account, legal and professional fees, and business license and permit fees.

What are the advantages of setting up a company in Malta?

Besides being strategically located, opening a company offers your business ready access to the European single market. The tax system is favorable. English is the official language. The country has a good talent base of a skilled multilingual workforce and is backed by a robust regulatory framework and a developing economy.

Are foreigners allowed to start a business in Malta?

Foreigners are allowed to start businesses in Malta. The company registration process is simple, and government policies facilitate a business-friendly ecosystem for all.

What papers are required for company setup in Malta?

For speedy registration, the application form must be submitted, and all the supporting documents must be completed. For details, contact us.

In how much time can I incorporate my company in Malta?

It takes up to two weeks to complete the process and register your company.

Can I complete the Malta company formation formalities online?

Yes, you can complete the formalities online. The Malta Business Registry offers businesses the option to submit their documents in electronic format.

For Malta company formation of a private company, what is the minimum share capital?

The minimum share capital required for a private company in Malta is €1,165. However, according to the law, only 20% is required upfront during incorporation.

For a Malta company formation, is a local address a must?

Yes, company registration in Malta is incomplete if you do not have a local registered office address. The address is used for all formal communications. All official documents and legal notices are served at this address.

Can non-EU residents form a company in Malta?

Yes, non-EU residents are allowed to set up a company in Malta. However, there are additional requirements. It is recommended to speak with a professional to help you with the company formation in Malta. 

Do I need to have a bank account in a local bank to set up a Maltese company?

Yes, all companies registered in Malta need to have a bank account with a local bank licensed to operate in Malta.

For a private company in Malta, how many directors and shareholders are required?

1 director and 1 shareholder are required to register a Malta company.

What is the corporate tax rate in Malta?

At present, the Malta corporate tax rate is 35%. However, the tax is lower for foreign shareholders as Malta has unique refund tax systems.

Is Malta considered an offshore jurisdiction?

Malta is no longer considered an offshore jurisdiction. It is a member of the EU, and all its financial services comply with EU regulations. Thus, there is more transparency in the financial systems.

Other services

Leave a request for a service

The accumulated experience and tracking of future changes in this area allow us to be proactive
for our clients and develop the most adapted business structures to modern conditions.

By submitting this form, you hereby authorize Inteliumlaw to process your information for the purpose of addressing your inquiry. You retain the right to revoke this consent at any point. For further details, please review our Privacy Policy.

LEAVE A REQUEST FOR A SERVICE

The accumulated experience and tracking of future changes in this area allow us to be proactive
for our clients and develop the most adapted business structures to modern conditions.

By submitting this form, you hereby authorize Inteliumlaw to process your information for the purpose of addressing your inquiry. You retain the right to revoke this consent at any point. For further details, please review our Privacy Policy.