Company Registration in Malta
Malta is an archipelago in the central Mediterranean between Sicily and the North African coast. It's a nation known for historic sites related to a succession of rulers including the Romans, Moors, Knights of Saint John, French and British. It has numerous fortresses, megalithic temples and the Ħal Saflieni Hypogeum, a subterranean complex of halls and burial chambers dating to circa 4000 B.C.
Malta is a tourist destination with its warm climate, numerous recreational areas, and architectural and historical monuments, including three UNESCO World Heritage Sites: Ħal Saflieni Hypogeum, Valletta, and seven megalithic temples which are some of the oldest free-standing structures in the world
A business or company set up in Malta provides an effective, EU-based solution. We specialize in providing tailor-made corporate services and packages for start-ups, medium and large entities.
With over 30 years of experience, our team of dedicated professionals will help you with your company structuring and ongoing corporate structuring requirements including Bank Account application support, Accounting, International Tax Planning, Directorship, and Office Space.
Malta comes under the Southern part of Europe and is an island country that consists of an Archipelago in the Mediterranean Sea. It is an island located south of Italy. Going for the process of company registration in Malta is straightforward, as it is a small island that offers immense opportunities. Hence an investor can go through the process of company registration in Malta.
Benefits of Company Registration in Malta
- Ease of Doing Business
Setting up a business in Malta is quite straightforward. The applicant would require only an initial capital of EUR 1165 to set up a company. Apart from this, there is no requirement for resident directors or shareholders in Malta. A company that is incorporated in Malta can have any national carrying out the duties of shareholders and directors.
- Tax Treaties
An applicant going for the process of company formation in Malta would get benefits from EU VAT registration. Apart from this, Malta has different forms of Double Taxation Treaties with countries such as the USA, the UK, Singapore, and Canada. Due to this companies would not be taxed twice. A company that selects Malta can use its offshore structure to gain a specific forms of tax benefits. However, the company would require to utilize this entity as the headquarters to avail specific tax benefits.
- Local Language
In Malta, English is considered the local language. More than 80% of the population in Malta speak English. Hence there are no communication gaps between foreign investors, government authorities, and employees in Malta.
- Infrastructural Facilities
Malta is an island located between Africa, Middle East, and European Union, hence there is a lot of transfer of resources between the above countries. Outside the EU, Malta has the largest seaport. This would make it an ideal place for carrying out business for entrepreneurs.
- Cryptocurrency
Malta is considered one the largest places where cryptocurrency dealings occur. Hence investors can consider all the above advantages for company registration in Malta.
Malta Company Registration Procedure
The steps to set up a company in Malta are very straightforward and can be done remotely or online without the need to travel. Our corporate service team can efficiently guide you through the whole process for a smooth registration of your Maltese company during a meeting or a call.
In order to form a company in Malta, you would need to:
- Fill in an online company application form. This will enable us to understand what type of Company is required and what annual services are required from our end.
- Complete the required due diligence documents on the directors and shareholders.
- Once these are received, our compliance team will review the documents.
- Once all is cleared, the memorandum and articles of the company will be drafted for signature. Original signed documents need to be sent to our attention by courier.
- Once received, the company will be set up within a few days.
Types of Company Registrations in Malta
- Limited Liability Company (LLC)
This entity is also known as a Maltese Limited Liability Company. The liability of the shareholders and directors is limited to a specific amount of subscribed capital. For forming this type of entity, a minimum of one director and one shareholder are required. The minimum capital required for this form of entity is EUR 1165. A company secretary is also required for registering this form of entity. The financial statements of an LLC can be submitted to the Inland Revenue Service (IRS). Usually, this form of entity is utilized for forming small and medium enterprises (SME).
- Malta Representative Office
Usually, a Maltese representative office would be utilized for carrying out the promotion of products. Marketing of services and products is allowed through this office. However, this office cannot carry out operations that are carried out by the parent company.
- Public Limited Company
This is also known as a Maltese PLC. These forms of organizations are allowed to issue shares to the public. Shares can be traded through the local Maltese Borza Stock Exchange. Apart from this, these companies can also list their shares in other EU stock exchanges. The minimum capital required for forming this type of entity is EUR 46,500.
- Malta Branch Office
A foreign company can start operations in Malta through a branch office. An investor going for company registration in Malta can utilize this, a form of business structure for carrying out operations under the scope of the parent company. A branch office is not allowed to carry out any other operations. A Malta resident is required to be appointed as a branch representative for this form of entity.
- Free Zone Company
This type of company is permitted to carry out a specific forms of activities within the industry. An investor wanting specific forms of exemptions can go for this type of business structure. There are different types of benefits such as VAT and Tax reduction for the whole entity. At least one director and two shareholders have to be appointed for running this type of company. A Maltese resident is required to be appointed as a representative.
Procedure for Company Registration in Malta
- Choose the type of Business
First and foremost, the applicant has to choose the type of relevant business structure for company registration in Malta. Depending on the type of activities carried out, the applicant can choose the business from the above business structures.
- Select the name of the Company
In the next step, the applicant would have to select the name of the company. The name of the company must be unique and must not be already taken. An application for the name of the company must be made with the trade registry. The name of the company must not be conflicting with any other business names.
- Prepare all the documents
In this step, the applicant would have to prepare the relevant documentation. These documents will include the memorandum of association, articles of association, and other documents for the trade registry. This registry is also known as the MBR registry. All the documents have to be notarized along with signatures.
- Deposit Share Capital
Then the applicant must open a corporate bank account in Malta. With this step, the applicant would have to deposit the share capital in the bank account.
- Register the Company for Tax
After all the documents have been filed with the Registrar of Companies of Malta, a certificate of registration would be provided to the applicant. This certificate of registration is evidence of company registration in Malta. Once this certificate is issued, the applicant would have to register with the authorities for filing all the compliances and other requirements.
Procedure to Open a Bank Account
When it comes to banking options, a person interested in setting up a company in Malta must find a bank suitable for the company’s current structure and activities. These in turn must match the risk appetite and client acceptance of the bank. Opening a bank account is something that we can assist you with, thanks to the excellent collaboration we have with a number of local and foreign banks. One may wish to also consider electronic money institutions as a means of online banking as opposed to a fully-fledged licensed bank account. When setting up a Maltese company, it is not a requirement to open a bank account in Malta as it is also possible to have a bank account outside of Malta if necessary. The process to open up a bank account in Malta could be lengthy. It is important to note that any final decision made by the bank is out of our control, however, with our assistance to review the bank chosen and to review the documentation that one will provide to the bank prior to submission, we are effectively capable of ensuring that you will be providing the correct and accurate information to increase your chances of success.
Taxation & Double Tax Treaties
Malta is currently a signatory to almost 70 Double Tax Treaties and some interesting opportunities exist when putting into place the appropriate corporate structure. Corporate tax in Malta is calculated at a flat rate of 35% on the gross profits based on the audited financial statements of the company. However through the availability of a tax refund system granted to shareholders of Malta-registered companies, the overall net effective tax rate could be reduced to 0% in the case of holding company structures, and 5% in the case of trading companies. In either case, there are specific legal requirements that must be satisfied in order for shareholders to benefit from such tax refunds. Licensed shipping organizations which own or operate tonnage tax ships are exempt from taxes in Malta.
Frequently Asked Questions about Registering a Company in Malta
1.Why do companies register in Malta?
Malta is strategically located in the middle of the Mediterranean and also forms part of the European Union. With English being a primary language in Malta and the work ethic found on the Island, it is easy to see why companies decide to set up in Malta. Further to this, Malta also offers some benefits for Maltese companies to make use of our approved taxation system.
2.Is Malta offshore?
Malta forms part of the European Union and is therefore not considered to be an offshore country.
3.What is to cost of registering a company in Malta?
This will vary depending on the services required from our end which we will be happy to discuss in more detail depending on your requirements. With regards to registration fees, a disbursement fee of €320 will be applicable which will cover the registration fee and certified copies of the Memorandum and Articles of the company for a company with a share capital of up to €1,500.
4.How much is the VAT in Malta?
In Malta, goods and services are generally taxable at a standard VAT rate of 18%. However, certain goods and services have a reduced rate of 7% or 5% or 0%.
5.Is Malta tax-free?
No, the effective tax rate in Malta is 35%. There are instances when this can be reduced should certain conditions be met.
6.What is the company tax rate in Malta?
The effective tax rate is 35%, should certain conditions be met and the tax refund availed of, this could be reduced to 5-10%. Should certain exemptions apply, the tax rate may also be reduced to 0%.
7.What are the documents required in order to incorporate a company in Malta?
There will be a company application form to be filled in along with some due diligence documents required.
8.How long does it take to register a company in Malta?
Once the original package of certified documents is received, within a few days the Company may be set up.
9.Do I need to have a physical address?
As a minimum one would need a registered address in Malta. It is also possible to obtain a physical personalized address that will provide greater benefits to your company.
10.What capital does a Maltese company need?
The minimum share capital is €1,200.
11.How many directors and shareholders are required in a Maltese company?
A minimum of 1 director and 1 shareholder is required.
12.What are the annual document filing and fee obligations?
Audited financials, corporate tax returns, and one annual return must be submitted annually to the respective authorities
13.Are there any company name restrictions?
The forming entities are free to choose the name they wish as long as this is not already in use, already reserved, or very similar to other company names. The name can neither be misleading, offensive, or otherwise undesirable. The name must be written in the English alphabet.