Company Registration in Malta

Although Malta is not traditionally regarded as a conventional tax-free jurisdiction, establishing a company in this region is both lucrative and prestigious. Within the European Union, one can engage in any lawful business activity. Malta presents an appealing option for establishing your business presence, given its strategic location, stable, and developed economy, offering access to numerous local markets. Particularly enticing for shipowners with vessels of up to 1000 tons is the exemption from individual income tax. If you are contemplating this jurisdiction, your business presence can be structured through one of these forms.Setting up a company is an exciting venture, and choosing the right jurisdiction plays a crucial role in the success of your business. Malta, a picturesque Mediterranean island, has emerged as a popular destination for entrepreneurs seeking a favorable business environment. We’ll explore the process and benefits of company registration in Malta. Malta’s strategic location, robust legal framework, and business-friendly policies make it an attractive choice for international businesses. As a member of the European Union, Malta offers seamless access to the EU market, providing a gateway for companies looking to expand their operations globally.

Requirements for forming a Private Exempt Company in Malta:

• Registration: The company formation process can take up to four weeks.
• Choosing a Company Name: Names can be in any language using the Latin alphabet, must be unique, and cannot imply association with illegal or governmental activity.
• Public Records: Information about directors and shareholders, including their addresses and dates of birth, is publicly accessible. Trusts are required to disclose information about the settlor, trustees, and instigators.
• Financial Statements: Companies must prepare, audit, and file financial statements with the Maltese government to demonstrate their financial situation.
• Company Secretary: Every Malta Private Exempt Company must appoint a company secretary, who cannot be the same person as the director, but can be an individual or a corporate body from any country.
• Annual General Meetings: Shareholders are required to hold an annual meeting, which can be conducted in any country.

To initiate the company registration process in Malta, follow these steps:

1. Choose the Type of Company:

• Limited Liability Company (private or public)
• General Partnership (En Nom Collectif or En Commandite)
• Single Proprietorship
• Overseas Company with a branch in Malta.

2. Select a Unique Company Name: Ensure the chosen name is distinctive, non-offensive, and accurately reflects the nature of the business. Certain words may necessitate special permission.
3. Prepare Necessary Documentation: Assemble essential documents such as the Memorandum and Articles of Association, containing vital information about the company (type, subscribers, registered office, share capital, directors, etc.). For corporate shareholders, Form BO1 might be required. Additionally, provide evidence of paid-up share capital, typically in the form of a bank deposit advice.
4. Pay the Registration Fee: The registration fee amount is contingent on the authorized share capital.
5. Obtain a Certificate of Registration: If all submitted documents are accepted, the Registrar issues a certificate affirming the company’s existence and authorization to conduct business.
6. Register for VAT: Once the company is registered, proceed to register for Value Added Tax (VAT) at 18%, if it is a trading entity. The registration process varies based on the applicant’s status (sole proprietor, company legal representative with a Maltese ID, or foreigner).

Audited financial statements to boost credibility and transparency

Limited liability structure

Advantages

• Straightforward and uncomplicated company registration process
• Favourable effective tax rate for trading income
• Exemption from tax on qualified inbound dividends
• No taxation on outbound dividends
• Participation exemption applied to capital gains
• Membership in EU, Schengen, and OECD
• Official use of the Euro currency
• Sophisticated and competitive corporate tax framework
• Resilient banking system
• Consistent and strong political backing for the financial services sector
• Absence of transfer pricing and CFC rules
• English serves as the official language

BENEFITS OF THE JURISDICTION

If you are uncertain about opting for company formation in Malta or considering other jurisdictions, several compelling reasons support choosing Malta for company registration:

1. Financial and economic stability.
2. Swift and straightforward registration processes. A new company can be established within two weeks, and a pre-existing company can be acquired in just one day.
3. No mandatory personal presence of the beneficiary in Malta.
4. Security of personal data. Nominal representatives, who are residents of Malta, will act on behalf of the beneficiary, ensuring complete confidentiality.
5. Favourable tax legislation.

If you are planning to initiate the company registration process in Malta, the following preliminary stages must be successfully completed:

• Clearly defining the business objectives that the Maltese entity aims to achieve.
• Selecting, verifying, and reserving the business name for the prospective Maltese company.
• Gathering information about shareholders, beneficial owners, and future managers of the Maltese company.
• Securing a registered address for the upcoming entity.
• Depositing the minimum required amount of statutory capital.
• Drafting the Memorandum and Articles of Association for the forthcoming Maltese company.
• Compiling and submitting the necessary set of documents to the registrar.
• Registering for tax and social security purposes.
• Obtaining licenses and special permits if they are deemed necessary.

It’s important to note that the specific registration plan may vary slightly based on the business objectives and the particulars of each case. Regulated United Europe specialists can provide more precise consultation on this matter.

For those contemplating company registration in Malta, the following tax insights may be beneficial in the decision-making process:

• Corporate income tax rate – officially set at 35%, but effectively stands at 5% for trade companies.*
• Personal income tax rate – 35%
• Value-added tax rate – 18%
• Withholding tax (for non-residents) – (i) dividends – 0%, (ii) interests – 0%, (iii) royalties – 0%
• Capital gains tax rates – subject to variation based on income source and taxpayer status.

* While the corporate income tax rate stipulated in local legislation is formally 35%, it is practically 5% for trade companies. Initially, businesses are required to pay tax at a rate of 35% on total income earned. However, 6/7 of this amount is refunded (equivalent to 30%) in the subsequent months. For royalties and a non-controlling shareholding, the refund is 5/7 of the tax paid (effectively 10% corporate income tax for the enterprise). In certain cases, total exemption from corporate income tax is feasible. For detailed information on favourable tax conditions in your specific business case, contact our lawyers.

A Malta Private Exempt Company offers a range of advantageous features:

Company Structure: A Maltese Private Exempt Company necessitates just one director and one shareholder. Non-residents are permitted to hold all shares, and there’s no mandate for the director to be a local resident. However, the director cannot be the same person as the company secretary. The option for nominee directors and shareholders is available, ensuring privacy and confidentiality.

Low Tax Rates: Malta taxes income earned worldwide, with a corporate tax rate of 35%. Non-resident companies, however, can benefit from an 85% refund, effectively reducing the tax rate to 5%. This refund is issued to shareholders after the full tax payment. When dividends are distributed, shareholders receive a partial refund (85%), resulting in a total tax payment of 5% for the Private Exempt Company.

Zero Tax Benefits: Malta offers a tax-friendly environment with no wealth tax, capital gains tax, or inheritance tax. Moreover, there are no taxes on dividends or bank account interest. The absence of withholding tax on dividends, royalties, and license fees adds to the appeal.

Double Taxation Treaty: Malta has established over 70 double taxation agreements with various countries to prevent companies from being taxed twice on the same income.

VAT Application: For companies engaged in intra-EU trading, the Value Added Tax (VAT) is applicable at a rate of 18%.

Registered Office and Agent: Private Exempt Companies are required to maintain a registered office in Malta.

Entry into the EU Market: As part of the European Union, Malta benefits from all EU Double Tax treaties and regulations, facilitating entry into the EU market.

Minimum Share Capital: There is a minimum authorized share capital requirement of €1,250. A 20% payment of the minimum share capital is required upon incorporation, with the remainder payable within 12 months.

Trade Restrictions: While there are generally no restrictions on the types of trade for a Malta Private Exempt Company, some activities may require a license, such as insurance, investment services, and other financial services.

10 advantages of registering a company in Malta

1. You can start a business in a prosperous EU country with a strong economy that is resistant to financial shocks, a stable currency and no currency controls.
2. The process of registering a company in Malta takes a record short time. If you use the services of lawyers and do everything right the first time, it will take you no more than 10 business days to open the account.
3. Maltese people won’t mind if you move your entire business to their country later on. At the very least, there will be no administrative, immigration or economic consequences of this step, rather, on the contrary, “moving” will require minimal and monetary costs;
4. Neither the property nor the authorized capital of Maltese companies is subject to tax. The transfer of shares is not accompanied by the payment of stamp duty;
5. The founders and management of companies registered on the islands can include foreign citizens and foreign companies.
6. The procedure for registering a company in Malta can be carried out remotely, without your personal presence, although the Maltese Archipelago itself is one of the most picturesque places in the Mediterranean with an ancient history and beautiful nature, which you should definitely visit at least once;
7. For those foreign entrepreneurs who do not just want to open a company in Malta, but also plan to move themselves, the country’s immigration legislation providesfor the possibility of expediting obtaining a European passport for generous investments in the economy.You invest at least €600,000 if your resident status is 36 months, or at least €750,000 if your resident status is 12 months;
8. Malta has an ideal environment for some types of business activities. For example, if your path is cryptocurrencies, registering in Malta will help your company get an ICO license. Other important sectors: fintech, maritime, aviation, film and media, and tourism.
9. Malta’s banking system is characterized by European reliability and convenience, which is especially important for entrepreneurs just starting their work abroad.
10. Tax optimization. In order to develop small and medium-sized businesses, the Government of the Republic of Malta allows companies registered in the country to use tax deductions. In some cases, they allow you to reduce the income tax rate to a symbolic 5%. Malta and 70 countries have signed agreements on avoiding double taxation. Taken together, all the possibilities of the Maltese tax system encourage some experts to compare this island state with classic offshore companies.

Corporate taxation in Malta

Officially, the profits of companies registered in the country are taxed at a rate of 35%. A full calculation system is applied, in which shareholders are entitled to a refund of the tax paid on dividends, up to a maximum of 30%.

It is the opportunity to significantly reduce fiscal payments that attracts foreign entrepreneurs to the islands. Special conditions for certain areas of business, which we discussed earlier, and the benefits laid down in the legislation are also being used. How does it work?

The law allows the company’s shareholders to receive a refund of part of the corporate tax when distributing the profit received as a result of its activities. The amount of funds returned is equal to a certain percentage (depending on the type of activity from which the dividends were received and the tax benefits already used) of the tax paid to the treasury and reduces the real amount of corporate tax to 5-12%.

This deduction is returned to the account of the company’s shareholders, and not back to the corporate bank account, so in order to optimize taxation, the so-called “two-level scheme” is used, when not 1 company is registered in the country, but 2 (holding). In a holding company, one company acts as a shareholder of another company. And since the part of taxes returned back to the founders is not taxable income, the funds raised in this way remain at the disposal of the group of companies.

Deadlines for filing a tax return

The company’s paper tax return is submitted no later than 9 months after the end of the reporting period. It is possible to submit tax reports electronically.

VAT in Malta

The standard value-added tax rate for companies registered in Malta is 18%. For some types of products on the islands, VAT rates are reduced to 7%, 5% and even 0%.

Contributions to social funds

Every month, Maltese employers make social payments in the amount of 10% of the salary accrued to employees.

What legal form should I choose to open a company in Malta?

There are various types of companies available for doing business on the islands, including limited and unrestricted shareholder partnerships, as well as private limited companies and open joint stock companies with limited liability. In the last two sections, we will focus in more detail on the most common forms of business registration in Malta.

Limited liability company (LLC — Limited liability company)

Great for starting a small or medium-sized business. The peculiarity of this legal form is that the responsibility of management and shareholders for the results of the company’s activities is limited to the size of their share in the authorized capital.

The authorized capital must be at least €1,165. 20% of this amount must be deposited into a corporate account with a Maltese bank before registration.

An LLC must have at least 1 director and 2 to 50 shareholders. Both individuals and companies of any tax residence can act as directors and shareholders. In some cases, a Maltese limited liability company may be owned by one person or a legal entity.

To carry out the activities of joint-stock companies and interact with regulatory authorities, it is mandatory to have a secretary on the staff. Only an individual of any tax affiliation can be appointed to this position.

Public Limited Company (PLC — Public Limited Company)

It has a number of significant differences from just a limited liability company:

1. The authorized capital of this type of organization is divided into shares that can be traded on stock exchanges, both in the Republic of Malta and abroad;
2. The minimum authorized capital of an offshore company in Malta is €1,164.69, of which 20% must be paid when signing the company’s Foundation Agreement;
3. In a PLC, the number of shareholders is not limited, but there must be at least two directors.

How do I register a company in Malta?

The process of starting a company in Malta can be divided into 8 short steps:

1. Choose the legal form that best suits the specifics of your future business.
2. Create and approve an original name for your company. It can be written in absolutely any language, but it will only be written in Latin. It is also discouraged when the name of the company indicates illegal activities or activities that are regulated by state licenses on the islands;
3. Further, the company’s documents are prepared — the foundation agreement, which is also calleda memorandum, and the charter;
4. To register a business in the Republic of Malta, the company must have a registered office. According to the law, this must be a real premises owned or leased in the country, where important documents of the company will be stored;
5. You will need to open a corporate account with a bank in Malta and place a portion of your foundation capital on it. In the case of a PLCwhose shares may rise or fall in price, the current account must contain an amount equal to 25% ofthe authorizedcapital of the company (i.e., the initial capital before trading on the stock exchange).
6. You also need to register a new company with the tax service. Your legal entity will be automatically assigned a tax number.
7. Some activities, such as gambling, investment, banking, trading, and insurance, will require obtaining a state license.
8. Finally, when all the paperwork is prepared and approved, and additional conditions are met, you pay the state fee and send the completed form along with the registration documents.

The supervisory authority makes a decision on your application within 2 days, and another 7-8 days are spent on processing the necessary documents. If your statutory documents comply with the Maltese Companies Act in form and content, the regulator awards them unique numbers and leaves them in storage. You are also provided with a certificate of registration of the company, on the basis of which all further commercial activities will be carried out. Companies registered in Malta must renew their status annually.

How does the state control business in Malta?

All companies registered in Malta must prepare and submit a financial report and tax return, even if they have not been active in the islands.

The company has up to 10 months to prepare and submit its financial statements after the reporting period ends. The standard end date of a fiscal year in the Republic coincides with the end date of a calendar year. The duration of the first reporting period for a new company is from the moment of its registration until December 31. Before going to the registration chamber, the financial statements are reviewed and approved by the board of Directors assembled on this occasion.

The tax return is prepared by the company’s auditors on the basis of the financial report. The deadline for submitting a tax return to the Internal Revenue Service of the Republic of Malta is September 30 of the year following the reporting period.

Most Maltese companies are also required to conduct accounting audits and organize an annual management and shareholder meeting.

Frequently Asked questions about opening a company in Malta

Acceptable business structures for establishing a company in Malta

The following types of business structures are used to register a Maltese company. A limited liability company (LLC), where the liability of shareholders and directors is limited to a certain amount of subscribed capital. LLC registration in Malta requires a minimum of 1 director and 1 shareholder. Min. the investment capital is 1200 EUR. The secretary is required to register a legal entity in this form. LLC financial statements can be submitted to the Internal Revenue Service (IRS). This form of organization is usually used to set up small and medium-sized enterprises (SMEs) in Malta.

A public limited liability company (PLC). This form of company can issue shares to the public. The shares can be traded on the Malta Stock Exchange. In addition, the PLC will place its shares on other EU stock exchanges. The minimum capital required to register a PLC in Malta is EUR 46,500EUR.

A free zone company. An investor who wishes to receive certain forms of benefits can register a free zone company in Malta. There are various types of benefits, such as VAT and company-wide tax cuts. At least 1 director and 2 shareholders must be appointed to manage this type of company. A representative in Malta must be appointed.

Representative office. Usually, an investor can choose to register a representative office in Malta to research the local market and promote the activities of a foreign company. Marketing of services and products is allowed through this office. However, the RO cannot conduct trading activities.

Branch. A foreign company can start operating here through the registration of a Maltese branch. The branch is not allowed to conduct any operations other than those offered by the main company. A resident of Malta must be appointed as a representative of the branch

Stages of company registration in Malta

To register a business in Malta, please follow the following procedure:

• Select the type of business.
• Approve the name.
• Prepare the constituent documents.
• Open a bank account in Malta and make an initial deposit.
• Register a company for tax purposes.
• Get a license in Malta (if necessary)
• Pay the registration fee.

Malta’s tax policy

Applicable corporate tax rate: 35%. For certain forms of companies, a refund is applied, which reduces the corporate tax rate to 25%. VAT in Malta is 18%. Tax returns and financial statements must be submitted 9 months before the end of the reporting year. All Maltese companies must conduct regular accounting audits. However, the audit performed will be determined based on the size of the assets and the size of the company. 10% must be paid for social security of employees.

Documents required for company registration in Malta

To open a company in Malta, you must prepare the following registration documents that are mandatory for all types of companies:

• Information about the company name.
• Foundation agreement.
• Confirmation of depositing capital to a local bank account.
• Information about your registered address in Malta.
• Information about the directors / shareholders/secretary.

Representatives of our company have experience in supporting the registration of a companyin Malta, related to both the corporate and financial spheres (company registration, opening bank accounts in Malta, etc.). We are ready to advise you on how to open a company in Malta, register a trademark in Malta, etc. you can find it on our website.

Company registration in Malta

The incorporation of a company in Malta is seen as a strategically beneficial step to further grow and scale the business. Malta is located in the heart of the Mediterranean, providing convenient access to European, African and Middle Eastern markets.

The country is characterized by a stable economy, a strictly regulated and reliable financial system, and state support for entrepreneurship. In this article, we will talk about the requirements and procedures that must be followed to register a company in Malta.

Advantages of registering a company in Malta

Malta is a prestigious country that offers many advantages for international business. It has a common law system that is largely based on English law. This creates a stable and transparent legal environment. The country is known for having a comprehensive legal framework for financial services.

Opening a company in Malta offers a number of benefits for entrepreneurs, including:

• Access to the European Union market.

As part of the EU, Malta provides businesses with the opportunity to enter the vast European market, which is a significant advantage for those who want to expand their presence not only in Europe, but also on the international stage.

• Economic and political stability.

Registering a firm in Malta can increase trust and reputation among investors, partners and clients, as the country has established itself as a place with a sustainable economy and politics. This creates favorable conditions for doing business and contributes to its long-term sustainability. Licenses issued in Malta can operate throughout the European Union, thanks to the principles of the single market. This makes it easier for entrepreneurs to expand their activities in other EU countries.

• Developed financial sector.

The financial sector of this country is one of the most developed and reliable in Europe. Membership in the European Union provides an additional degree of reliability and stability to the Maltese financial sector, and regulation meets international standards. Malta has established itself as a fast – moving country following financial changes. The Government creates favorable conditions for the registration of fintech companies in Malta and for the quality provision of services by Maltese fintech companies to their clients.

• Favorable tax policy.

Although Malta has a high corporate income tax rate of 35%, tax deductions are available that can significantly reduce the overall tax burden for companies, especially for non-resident businesses. A tax refund mechanism is applied to shareholders, which can reduce corporate tax by up to 5%, which is one of the lowest rates in the EU.

• A supportive business environment.

The country is known for its favorable environment for business development in a wide range of sectors, which helps attract foreign investment and strengthen international business ties. Popular destinations for registering a business in Malta include shipping, international trade, fintech, IT, and shipping companies.

• Visa-free zone.

Membership in the Schengen Area makes it easy to move between Malta and other countries of the Schengen Agreement, which facilitates business transactions, as well as promotes economic cooperation and strengthening ties between member states.

All these aspects make Malta a “center of attraction” for global companies seeking tax preferences, access to European markets and a secure economic environment for their operations.

Malta Company Registration Process

Registration of a Maltese company is a procedure devoid of unnecessary bureaucracy. The registration process includes the following basic steps:

1. Select the legal form of the company and its name.
2. Drafting of the Constituent Agreement and Charter, preparation of other constituent documents.
3. Submit your application and documents to the Malta Business Register (MBR).
4. Payment of registration fees.

The stage of choosing the type of company and its name requires careful planning and consideration of both legal and strategic aspects. It is important to take into account future plans and business needs, as well as comply with all regulatory requirements.

When choosing a company name, it is important to consider the following:

• Uniqueness: The name must be unique and not match the existing names of companies in Malta.
• Name verification: Before registering, you must check the availability of the name through the Malta Company Registry.
• Language of the name: The name can be in English or Maltese.
• Legal requirements: The name must match the type of company (for example, include the words “Limited ” or” Ltd ” for private limited liability companies).
• Restrictions: Some words and phrases may be restricted or require special permission (for example, words that indicate government activity).

The next step in the process of registering a company in Malta is the development of a Foundation Agreement, which should contain information about the company’s name, its registered address in Malta, business objectives, information about the founders/shareholders, types of shares and their par value. The minimum number of founders is one for private companies, and at least two for public companies. The document should also include information about the directors and the secretary.

The next step is to develop a Charter that defines internal management procedures, including the organization of founder/shareholder meetings, the process of appointing directors, and profit sharing. This document must comply with the laws of Malta.

Maltese law sets out specific regulatory requirements for corporate directors and shareholders. Directors who have the status of both individuals and legal entities are required to strictly comply with legal provisions, provide timely submission of financial and other reports, and protect the interests of both the corporation and its shareholders. Shareholders who are the company’s founders play a central role in the management process, actively participating in annual meetings and making decisions regarding the appointment of directors and approval of financial statements.

After all the necessary documents are prepared, they are submitted to the Maltese Business Register in person or through an accredited agent. After checking and approving the documents, the Registry will issue a certificate of registration of the company in Malta.

Thus, the procedure for registering a company in Malta requires detailed documentation and strict compliance with legal requirements, which contributes to increasing the level of transparency and efficiency of management processes. After completing the above steps, you will need to submit an application foropening an account in Malta in the name of your company and apply for licenses (depending on the nature of the activity that the firm plans to carry out).

Open a company in Malta: categories of corporate structures

Malta is open for foreign business, and at the legislative level, foreign residents are allowed to establish a business in Malta in such forms as: Limited Liability Company (Ltd), Partnership, Public Limited Company (PLC), branch.

Costs and time frame for starting a business in Malta

When setting up a company in Malta, registration fees and time frames should be considered, which are key. The amount of registration fees depends on the company’s authorized capital and may vary. For example, for a private limited liability company with an authorized capital of 1,165 euros, registration fees start at 245 euros and increase depending on the amount of authorized capital. For companies with a capital of more than 1,500,000 euros, the maximum amount of the registration fee can reach 2,250 euros.

In general, in terms of the costs of registering a Maltese company and its annual maintenance, as well as fees for various services, such as audit and accounting services, Malta offers a lower amount compared to, for example, Cyprus, where similar conditions are offered for doing business.

Please contact our specialized lawyers for up-to-date information and support in registering a company in Malta. This will allow you to accurately meet all the necessary requirements and speed up the registration process.

Tax treatment and financial reporting in Malta

The Maltese corporate tax system offers a number of advantages that make it attractive for companies to register as non-residents in order to operate internationally. The basic corporate tax rate for companies registered in Malta is set at 35%. A unique feature of the system is the mechanism of tax refund to shareholders after paying corporate tax, which can effectively reduce the real tax rate to 5%.

Companies registered in Malta are exempt from paying tax for dividends, interest and royalties, allowing them to be paid without tax deduction. For non-resident companies, taxation applies only to income earned in Malta, while income earned outside Malta is exempt from taxes.

The standard VAT rate is 18% and applies to most goods and services. The country actively participates in international agreements aimed at preventing double taxation, thereby easing the tax burden for companies operating internationally. Various tax breaks and incentives are also offered for industries related to research, development, innovation and technology. Malta encourages the development of international trade and has many double taxation agreements with more than 70 countries.

In the field of accounting and reporting, Malta follows both local and international standards similar to the UK and the relevant EU directives. Companies are required to maintain records that accurately reflect their financial condition and performance. Annual financial statements should include a balance sheet, income statement, cash flow statement, and explanatory notes. These documents are necessary both for internal management and for providing them to external stakeholders, including investors, creditors and tax authorities. Every year, companies must submit a report to the Register of Companies, including information about the company itself, its directors and shareholders.

It is important to involve competent professionals who provide accounting services to companies in Malta, as timely submission of financial and annual reports is important, as any delays or violations can lead to fines and other sanctions. Companies must strictly adhere to international standards and local legislation, and regularly update and review their financial statements.

Registering a company as a non-resident in Malta: which industries are given priority?

Malta is an attractive destination for those who are looking for opportunities in fintech, IT, as well as for those who wishto get a digital nomad visa. The government seeks to create favorable conditions for IT and fintech companies, ensuring their reliable regulation and investing in the development of high-tech infrastructure.

Malta is often listed as one of the leading fintech hubs in Europe. In 2023, the country ranked 3rd (after the UK and Sweden) in the list of countries that have created a full-fledged and efficient environment for the development of fintech companies. Many major international fintech companies, such as Nexo and eToro, are headquartered here.

Entrepreneurs are also interested in starting a fintech startup in Malta due to the presence of a highly educated talent pool that can meet the needs for various technical and innovative skills. Reputable companies are ready to collaborate with new players, creating opportunities in such segments as InsurTech and RegTech.

The Malta Financial Services Authority (MFSA) has created a regulatory FinTech sandbox that provides financial service providers with a controlled environment to test innovative products and services. Malta has also established a new regulatory body, the Digital Innovation Authority (MDIA), which certifies DLT platforms.

Prerequisites for long-term development can be provided by registering a crypto business in Malta, as Malta is positioned as a country with a progressive and crypto-friendly environment. In 2018, the Virtual Financial Assets Act was introduced here, which regulates the activities of those who provide VFA services, such as consultants, brokers, portfolio managers or crypto exchanges.

Malta’s gaming industry continues to grow, making it one of the most attractive jurisdictions in Europe for iGaming operators. Malta is characterized by a well-developed legal and operational infrastructure in the gaming industry. In 2018, the regulations governing gambling were completely revised to meet the growing needs in this area. The Malta Gaming Authority (MGA) has launched the Sandbox Framework, which addresses the use of virtual financial assets (VFA) and virtual tokens, innovative technology mechanisms (ITA) in the gaming industry as a means of payment for gaming services.

Malta has made significant strides in developing the information and communication technology (ICT) sector. The country ranks 12th out of 28 EU countries in terms of ICT implementation. Registration of an IT company in Malta opens up opportunities for business growth and development in a secure business environment not only for large corporations (by the way, Microsoft, IBM and Oracle offices are located here), but also for self-employed individuals who can register a LTD in Malta to promote their IT services and get a Digital Nomad Visa at Malta.

The Malta Digital Nomad Visa allows residents of non-EU countries to live and work in Malta for one year. To obtain a visa, the applicant must provide proof of a monthly minimum gross annual income of EUR 32,400. A digital nomad visa, as we have already mentioned, can be obtained in the context of self-employment if the applicant is registered as an LTD or as a director of a company registered in Malta.

In addition, those who want to start an IT company in Malta can apply to the MITA Innovation Center for participation in the YouStartIT program. Technology startups have the opportunity to test, test and implement their business idea and develop a product within 20 weeks. For projects that have been approved by MITA, Pre-seed investments will be allocated in the amount of 30,000 euros.

Government grant programs for businesses in Malta

There are a number of government business grant programs available in Malta that can help companies grow and expand their businesses. These programs provide funding, advice, and other resources to companies that meet certain criteria.

• Erasmus for Young Entrepreneurs

The Erasmus for Young Entrepreneurs program is an initiative of the European Union aimed at helping aspiring entrepreneurs acquire the necessary skills to manage a small or medium-sized enterprise. The program provides an opportunity to spend time with an experienced entrepreneur in one of the EU member states, the UK and COSME countries, including Malta.

The main goal of the program is to facilitate the exchange of experience, training and networking for new entrepreneurs by working with an experienced entrepreneur in another participating country. The program promotes the inter-state transfer of knowledge and experience between experienced entrepreneurs and those who want to start a startup in Malta.

The program includes four main stages: the application phase, the selection phase, the contract preparation and conclusion phase, and the implementation phase. During the application process, interested new entrepreneurs (NE) and business owners (HE) apply online and choose an intermediary organization (IO). After accepting the application, NE and HE get access to an online catalog where they can view profiles and start recruiting.

In the contract preparation and conclusion phase, once the selection is accepted by both parties, an activity plan is prepared using their IO. This activity plan is an online document that includes the goals and expectations of the exchange, business/work / curriculum, tasks, responsibilities and legal implications for those wishing to exchange valuable experience when starting a small business in Malta. In the implementation phase, NE and HE complete their stay abroad in accordance with the objectives set out in the activity plan.

The program supports the placement of a new entrepreneur, provided that all the mentioned conditions are met, namely mutual interest, assistance from acceptable IO, acceptance of entrepreneurs and signing of the necessary agreements by all participating parties. Any sector of the private economy can participate in the program. Project participants should represent micro, small or medium-sized enterprises.

The program provides NE financial support to cover the costs of travel (round trip) and accommodation during your stay abroad. Financial support is paid to IO NE. The amount of financial support and related details are determined in the financial agreement signed between NE and IO and is based on a fixed monthly amount for the country of exchange and actual periods of stay abroad with the host company.

The Erasmus for Young Entrepreneurs program offers a unique opportunity for those who want to start a business in Malta and study business practices in other countries, expand their professional contacts and gain valuable international experience.

• Smart and Sustainable Investment Grant

The “Smart and Sustainable Investment Grant” program, initiated by Malta Enterprise, provides financial support for those wishing to register a company in Malta, aimed at stimulating sustainable investment. This program was launched in response to the European Union’s commitment to become the first climate-neutral bloc by 2050, which requires significant investment from both the EU and the national and private sectors. The program aims to support businesses in their investments to encourage the transition to more digital and environmentally sustainable business practices.

To participate in the program, you must be registered as a limited liability company, partnership or sole proprietor conducting economic activity with commercial real estate in Malta. The investment project should focus on achieving sustainability, improving environmental efficiency, or digitalization that promotes growth potential. In addition, the applicant must not have any VAT, income tax, or social security arrears that are more than twelve months overdue, and must have at least one full-time employee registered with Jobsplus.

The maximum grant that can be granted to support eligible investments covers 50% of eligible costs up to a maximum grant of 100,000 euros per project. In addition, a tax credit of up to 40,000 euros per project can be granted as an additional 10% (up to 60%) if the project meets one of the criteria, and 20% (up to 70%) if the project meets any two of the criteria.

Acceptable costs for companies registered in Malta may include investments and modifications in equipment and technologies that lead to a quantitative reduction in CO2 emissions. In addition, investments in specialized technical services and the acquisition of technologies that allow measuring parameters related to the company’s carbon footprint are allowed.

Applications for participation in the program are submitted through the Malta Enterprise client portal. When submitting an application, you must provide full details and expenses that will be incurred. The application must include a technical analysis conducted by a competent professional, such as an engineer, on environmental and energy savings, quantifying the benefits that will be achieved through the project.

This program represents a significant opportunity for businesses to set up in Malta to invest in sustainable technologies and practices, which contributes to improving their competitiveness and economic sustainability.

Intellectual property protection and compliance with local laws

Intellectual property protection in Malta is regulated by a number of laws and regulations that provide legal protection for copyrights, patents, trademarks and other forms of intellectual property. The main law in this area is the Intellectual Property Act, which was updated in 2000.

Important aspects of intellectual property protection in Malta include:

• Copyright.

Copyright protection in Malta applies to literary and artistic works, music, films, software and other works. Copyright is created automatically when a work is created and does not require registration.

• Patents.

A patent can be obtained to protect inventions in Malta. The patent law requires that the invention is new, has an inventive step and is applicable in industry. Patents are granted for a fixed period, usually 20 years.

• Trademarks.

Trademark protection in Malta is used to identify the goods or services of one manufacturer from those of others. Registration of a trademark in Malta gives the owner the exclusive right to use the mark in relation to registered goods or services.

• Industrial designs and models.

Protection of industrial designs and models in Malta is also provided by law. This applies to the appearance of a product or part of it, including lines, contours, colors, or shape.

• Compliance with local laws.

Companies and sole proprietors must comply with local intellectual property laws, including data protection and privacy laws. Violations of these laws can lead to legal consequences, including fines and lawsuits.

• International agreements.

Malta is a member of a number of international agreements on the protection of intellectual property, which provides additional protection and opportunities for international cooperation in this area.

Protecting the company’s intellectual property assets in Malta provides important support needed to drive innovation, as well as helping businesses and sole proprietors protect and commercialize their intellectual assets.

Conclusion

Registering a company in Malta provides an opportunity for entrepreneurs and business leaders to expand their horizons in the international arena. Malta attracts thanks to its efficient tax policy, stable economic and political regimes, and its status as an EU member, which provides additional preferences for businesses.

The procedure for starting a business in Malta is quite straightforward, covering the choice of legal entity form, submission of documentation and meeting the criteria for directors and shareholders. The Government offers various government funding programs that can encourage growth and innovation in business, especially in the field of sustainable development.

Malta’s intellectual property protection legislation provides a solid foundation for doing business by promoting the preservation and commercialization of intellectual property. Given all these aspects, Malta is seen as an important region for those looking to expand their business in Europe and beyond the European continent.

What types of companies exist in Malta?

Malta, as one of the leading European financial centers, offers a variety of legal forms for doing business. This island nation attracts entrepreneurs from all over the world due to its strategic location, stable economy, favorable tax regime and flexible legislation. Let’s take a closer look at the main types of companies in Malta that are available to both local and foreign investors.

1. Private Limited Liability CompanyPrivate Limited Liability Company)

A private limited Liability company (Ltd) is the most common form of business in Malta. It offers limited liability to its shareholders, which means that shareholders ‘ personal assets are protected and they are only liable for the company’s debts to the extent of their deposits. Such companies can have from one to fifty shareholders and require a minimum authorized capital of 1,165 euros, of which at least 20% must be paid at registration.

2. Public Limited Liability CompanyPublic Limited Liability Company)

Public Limited Liability Companies (PLCs) can offer shares for sale to the general public and have the right to trade on the stock exchange. They require a minimum authorized capital of 46,588 euros, of which at least 25% must be paid upon registration. Public companies are suitable for large enterprises with a large number of shareholders and usually have more stringent regulatory requirements.

3.Variable Capital Company Capital Company)

This type of company is suitable for investment funds, as it allows you to change the size of the authorized capital without the need for a general meeting of shareholders. This makes it easier to manage your investment portfolio and adapt to changing investor requirements.

4. Partnership

There are two types of partnerships in Malta:General Partnershipand Limited PartnershipLimited Partnership. In a general partnership, all partners are jointly and severally liable for the obligations and debts of the partnership. In a limited liability partnership, there is at least one unlimited liability partner (complementary) and one or more limited liability partners (limited partners) who are liable only to the extent of their contributions.

5.Sole Proprietorship Proprietorship)

A form of solo entrepreneurship is available for small businesses or sole proprietors in Malta. This is the simplest and least expensive form of doing business, but it does not provide protection for personal assets, since the entrepreneur is fully responsible for the debts and obligations of the business.

6. Trusts and foundations

Malta also offers legal structures such as trusts and foundations, which are often used for inheritance planning, charity and asset management purposes. These tools provide flexibility and confidentiality, as well as allow you to optimize taxation.

Conclusion

The choice of legal form of a company in Malta depends on many factors, including the size of the business, the planned activity, investment goals and the need to protect assets. With flexible legislation and a favorable tax regime, Malta offers ample opportunities for businesses of various types and sizes, strengthening its position as an attractive jurisdiction for international investors.

Table oftax rates for Maltese companies:

What is the size of the authorized capital of a company in Malta?

The charter capital of a company registered in Malta is one of the key aspects of its establishment and subsequent operations. The size of the authorized capital depends on the type of company and the industry in which it plans to operate, as well as on the requirements of Maltese legislation. In this article, we will take a detailed look at what the charter capital requirements are for different types of companies in Malta, including private limited companies, public companies, and specifics for specialized sectors.

Private Limited Companies Limited Companies

For private limited liability companies (Ltd.) in Malta, the minimum authorized capital is only 1,200 euros. It is important to note that when registering a company, you must pay at least 20% of the total authorized capital. This means that you only need to deposit 240 euros to start your business. The remaining part of the capital can be paid later, in accordance with the constituent documents and internal decisions of the company.

Public Limited Companies

For public companies (Plc.) in Malta, a higher minimum level of authorized capital is established, which is 46,600 euros. Just as in the case of private companies, a certain percentage of the authorized capital is required to be paid at the time of registration. For public companies, this figure is also 25% of the nominal value of shares issued at the time of establishment.

Specialized sectors and additional requirements

Depending on the specifics of the company’s activities, additional requirements may be set for the size of the authorized capital. For example, for companies operating in the financial sector, such as banks, insurance companies and investment funds, capital requirements will be significantly higher and are determined by the relevant regulatory authorities based on the risks associated with their activities.

Practical aspects of the authorized capital

The size of the authorized capital not only meets legal requirements, but also plays an important role in the company’s financial planning and strategy. It can serve as proof of the company’s financial stability to creditors, investors, and business partners. In addition, an adequate share capital allows the company to cover start-up and operational costs in the early stages of its operations.

Conclusion

The share capital is a fundamental element for the establishment and operation of a company in Malta. Depending on the type of company and the scope of its activities, the legislation sets different minimum requirements for the amount of capital. It is important to carefully consider the size of the authorized capital when planning a business, taking into account both legal requirements and the needs of the company’s future activities. This will not only ensure compliance with the law, but also help you achieve long-term business goals.

 Should a company in Malta have a local director?

The need for a local director for a company registered in Malta is an important aspect when planning and establishing a business on the island. Malta, as a member of the European Union, offers an attractive legal and tax environment for international business, attracting investors from all over the world. In this article, we will take a detailed look at the requirements for managing staff of companies in Malta and the role of a local director in ensuring compliance with local legislation.

Legal requirements for company management

Maltese law does not impose a mandatory requirement for the presence of a local director for all companies without exception. However, there are certain conditions and circumstances in which the presence of a local director or manager may be beneficial or even necessary for successful business operations and tax compliance.

Advantages of having a local director

1. Tax residency: In order for a company to benefit from the Maltese tax system, it is important to prove that it is managed and controlled from Malta. Having a local director, especially if it is the sole director or a member of the majority of the local board of directors, can help confirm the company’s tax residency in Malta.
2. Knowledge of the local market and legislation: A local director can have a deep understanding of the Maltese market and legal environment, which contributes to more efficient business conduct and minimization of legal risks.
3. Banking operations: Having a local director can simplify the process of opening and maintaining a company’s bank accounts in Malta, as local banks may require local management personnel to meet anti-money laundering requirements.

Requirements for company managers

Although Maltese law does not require a local director for all companies, it is important that management personnel, including directors, are properly qualified and able to ensure that the company is properly managed and complies with local and international regulations.

Conclusion

The choice of corporate governance structure in Malta should be considered and based on specific business objectives, tax strategy and compliance requirements. Having a local director can offer significant benefits in terms of tax planning, simplified banking operations, and overall compliance with Maltese law. However, this decision must be considered carefully and take into account all aspects of doing business in Malta, including the additional costs and obligations associated with hiring a local director. Consulting with local legal and tax experts can help you determine the best management structure for your company.

 What is the amount of government fees when setting up a company in Malta?

Establishing a company in Malta entails a number of government fees and charges that must be paid during the registration process. These expenses may vary depending on the type of company, the size of the authorized capital, and other factors. Malta offers attractive business opportunities, including thanks to its tax system and membership in the European Union, which makes it a popular jurisdiction for international investors. In this article, we will look at the main government fees and charges associated with setting up a company in Malta to give an idea of the initial costs.

Registration fees

The main cost of establishing a company in Malta is the registration fee, which is charged by the Registrar of Companies. The amount of this fee depends on the size of the company’s authorized capital. As of the last update, the fee structure is as follows:

• For authorized capital up to 1,500 euros, the fee is 245 euros.
• Further, the amount of the fee increases as the authorized capital grows, reaching a maximum of 2,250 euros for capital over 2.5 million euros.

These figures are indicative and subject to change, so before setting up a company, it is recommended to check the current rates on the official website of the Registrar of Companies of Malta.

Annual fees

In addition to the one-time registration fee, companies in Malta are required to pay an annual fee, the amount of which also depends on the company’s share capital. This fee is aimed at maintaining your company’s active status in the Company Register. The amount of the annual fee also varies and can reach 1,400 euros depending on the authorized capital.

Additional fees and expenses

Additional fees may apply depending on the specifics of the company’s business and documentation requirements. For example, separate fees will be charged for notarizing documents, apostilles, translations, and other administrative services. You should also take into account the costs of legal and consulting services if you seek professional help to register a company.

Conclusion

The establishment of a company in Malta involves certain initial costs, including government fees and charges. It is important to plan your expenses carefully and take into account all possible payments to ensure that your business is established successfully and legally. Despite the need to pay various fees, Malta continues to be attractive to international investors due to its strategic location, favorable tax environment and transparent regulatory requirements.

 What is the annual cost of servicing a company in Malta?

Companies registered in Malta attract entrepreneurs from all over the world due to their favorable tax system, strategic location and strong business connections. However, when considering registering a company, it is important to consider not only the initial costs, but also the annual cost of maintaining it. Let’s find out in detail what the annual cost of servicing a company in Malta is.

1. Annual fee for company registration

The annual registration fee depends on the company’s capital structure. The minimum amount of capital for a private company is 1,165 euros, and for a public company – 46,588 euros. The annual fee for companies with a minimum capital starts from 245 euros.

2. Accounting and auditing

Companies in Malta are required to maintain accounting records and provide annual financial statements. The cost of these services varies depending on the size of the company and the complexity of its operations, but on average can range from 1,000 to 5,000 euros per year.

3. Tax administration

Although the tax rate for companies in Malta is 35%, there are various tax refund schemes that can significantly reduce the actual tax burden. However, careful tax planning and administration is required, which also entails certain costs. These services can cost from 500 to 2,000 euros per year.

4. Registered office and Secretary

Every company in Malta must have a registered office in the country and a company secretary. The cost of renting an office depends on the location and can start from 1,200 euros per year. Secretarial services usually cost between 600 and 1,200 euros per year.

5. Contributions to the Chamber of Commerce and Industry

Joining the Malta Chamber of Commerce and Industry is not mandatory, but it can provide significant business benefits. The annual fee is about 200 euros.

Result

The total annual cost of maintaining a company in Malta can vary depending on a variety of factors, including the size of the company, its operations, and reporting requirements. On average, you can expect that the annual cost will start from 3,000 euros and may increase depending on the level of complexity and additional services. This makes Malta an attractive choice for many international businesses looking to optimize their tax obligations and take advantage of the other benefits that this jurisdiction offers.

 What are the main advantages of establishing a company in Malta?

The establishment of a company in Malta offers a wide range of business benefits, thanks to a unique combination of internationally recognized regulation, an attractive tax system, and a strategic location. Consider the key advantages of setting up a company on this Mediterranean island:

1. A favorable tax system

Malta is known for its favorable corporate tax system, including a tax refund system for shareholders, which can significantly reduce the effective tax rate. The nominal corporate tax rate is 35%, but thanks to the system of tax refund to shareholders, the effective rate can be significantly lower. This makes Malta attractive for international companies seeking to minimize their tax liabilities.

2. Sustainable legislation

Malta has a stable legal system based on the principles of common and continental law. This ensures predictability and reliability for the business. In addition, Maltese legislation is constantly updated to meet international standards and requirements, making it one of the most progressive in the field of corporate and financial regulation.

3. Strategic geographical location

Malta enjoys a strategic location in the heart of the Mediterranean Sea, at the crossroads between Europe, North Africa and the Middle East. This makes it an ideal entry point for businesses targeting these markets.

4. Multilingual and skilled workforce

Malta has a high level of education and the majority of the population speaks at least two languages — Maltese and English, which makes communication and business easier. This creates a favorable environment for international business and investment.

5. Attractive financial sector

Malta has a well-developed and diversified financial sector that offers a wide range of services, including banking, insurance, asset management and finance. The country’s financial institutions are well regulated and comply with international standards, which contributes to the creation of a safe and reliable financial infrastructure.

6. The EU and the eurozone

As a member of the European Union and the euro area, Malta offers companies access to the European single market and the ability to do business in euros, which simplifies trade and investment within the EU.

Conclusion

Establishing a company in Malta is an attractive option for international entrepreneurs and companies looking for stability, favorable tax conditions and access to European and global markets. The combination of a favorable tax system, a skilled workforce, a developed financial sector and a strategic location makes Malta an attractive jurisdiction for international business development.

 What are the ways to establish a company in Malta?

The establishment of a company in Malta offers entrepreneurs and businesses various ways to conduct and expand their activities in this attractive jurisdiction. Due to its flexible and progressive corporate structure, Maltese law supports several forms of company establishment, each of which is suitable for different business goals and strategies. Let’s take a detailed look at the main ways to establish a company in Malta.

1. Private Limited Liability CompanyPrivate Limited Liability Company)

This is the most popular form of business among foreign investors, providing flexibility in management and limited liability of its shareholders. Such a company requires a minimum of one shareholder and one director, and its minimum authorized capital is 1,165 euros, of which at least 20% must be paid upon registration.

2. Public Limited Company Limited Company)

It is intended for large operations and offers the possibility of placing shares among the general public. The minimum authorized capital for such a company is 46,588 euros, with a mandatory deposit of at least 25% at the time of establishment. Public companies are subject to strict regulation and require more information to be disclosed than private companies.

3. Variable Capital Company (SICAV)

This is a specialized form of company, most often used for investment funds. SICAV allows its capital to change depending on the number of shares bought or sold by investors. It provides flexibility for investment management and is a popular choice for collective investment schemes.

4. Partnership

Maltese law provides for two types of partnerships:a General Partnershipand aLimited Partnership. In a general partnership, all partners have unlimited liability for the debts and obligations of the partnership, while in a limited partnership, one or more partners have limited liability.

5. Branch of a foreign company

Foreign companies can establish a presence in Malta by registering a branch office. A branch is not considered a separate legal entity; instead, it acts as an extension of a foreign company and is subject to both local and foreign laws. This can be an effective way to explore the Maltese market or expand activities to Malta with minimal formalities.

6. Holding company

Holding companies in Malta are used to own assets and interests in other companies, while providing tax incentives and investment protection. Malta offers an attractive tax scheme for holding companies, including exemption from taxes on dividends and capital gains under certain conditions.

Conclusion

The choice of the form of establishment of a company in Malta depends on the goals and requirements of the business. Each form has its own advantages and limitations, as well as requirements for constituent documents, governance, and financial reporting. With its flexible corporate legislation and attractive tax system, Malta is an attractive jurisdiction for many types of businesses looking to expand their international presence.

Do I need to have a registered office in Malta?

According to Maltese law, every company registered in Malta is required to have a registered legal address in the country. This address is used as the official location for all corporate notifications, legal correspondence, and government registration. The registered address must be provided when registering the company in the Maltese Company Register, which is part of the Malta Financial Services Agency (MFSA).

Legal address functions

1. Legal representation and correspondence

The registered office serves as the primary location for all official correspondence and notifications from Maltese government authorities, including tax notices and requests from regulatory authorities. This ensures proper and timely management of corporate and tax liabilities.

2. Registration requirements

The legal address is part of the mandatory information provided when registering a company. It acts as the company’s physical representative office in Malta, emphasizing its legal presence in the country.

3. Availability for inspections

The address should be available for legal checks and inspections by government agencies, if required. This includes tax audits, audits, and other regulatory inspections.

4. Transparency and trust

Having a physical legal address in Malta increases business transparency and promotes trust among customers, partners and regulators. This confirms the seriousness of the company’s intentions and its commitment to compliance with Maltese law.

How to set a legal address

Companies can establish a registered address in Malta in several ways, including renting office space, using registered address services from specialized providers, or through law firms and consulting companies offering corporate services. The choice of the best option depends on the specifics of the company’s activities, its size and the requirements for a physical presence on the island.

Conclusion

In Malta, a registered office is not just a formal requirement for registering a company, but also an important element that ensures its legal and operational effectiveness. It plays a central role in managing corporate correspondence, complying with regulatory requirements, and maintaining business transparency. Establishing a registered office is one of the first steps to successfully registering and running a business in Malta.

 Can I open a branch of a foreign company in Malta?

Opening a branch of a foreign company in Malta is a popular choice among international businesses looking to expand their presence and operations in the European Union. Maltese law provides for relatively flexible conditions for opening branches, making the island an attractive jurisdiction for foreign companies. In this article, we will look at the key aspects of the process of opening and managing a branch of a foreign company in Malta, including the legal requirements, benefits, and registration process.

Legal requirements

To open a branch of a foreign company in Malta, you must meet a number of legal requirements and procedures established by the Malta Financial Services Authority (MFSA). A foreign company must provide the following documentation in English or with a certified translation:

• A copy of the constituent documents and articles of association of the foreign company.
• Certificate of registration of a foreign company in the country of origin.
• A list of the directors and secretary of the foreign company, as well as an indication of the persons authorized to act on behalf of the Malta branch.
• Address of the registered office of the branch in Malta.
• A statement that the foreign company is responsible for all obligations of the branch.

Advantages of opening a branch in Malta

1. Access to the European Market: Opening a branch office in Malta provides foreign companies with access to the European Union market, as well as the opportunity to benefit from numerous EU trade agreements.
2. Tax benefits: Malta offers a favorable tax system with the possibility of income tax refunds, which can be attractive for foreign companies.
3. Reputation: Malta has a good business reputation, a stable economy and a high level of financial and legal services.
4. Flexibility in management: Branches have a certain degree of managerial independence, while maintaining a close relationship with the parent company.

Registration process

1. Preparation and submission of documents: First of all, it is necessary to collect and prepare all the required documents and information for submission to the MFSA.
2. Registration with the MFSA: After submitting all the necessary documents, the MFSA conducts the branch registration procedure.
3. Opening a bank account: The branch will need to open a bank account in Malta to conduct financial transactions.
4. Registration for Taxes and Social Insurance: The branch must register with the relevant tax and social insurance authorities in Malta.

Conclusion

Opening a branch of a foreign company in Malta can be a strategic step to expand into the European market, while offering a number of tax and operational advantages. However, it is important to carefully prepare for the registration process, making sure that it complies with Maltese legal requirements and that the documentation prepared is sufficient. The right approach and understanding of local laws and regulations will help maximize the success and efficiency of a foreign company’s branch in Malta.

 Can a foreigner open companies in Malta?

Opening a company in Malta by foreigners is not only possible, but also widely practiced due to the attractive corporate environment, flexible tax system and strategic location of the country. Malta offers a variety of opportunities for foreign investors looking to expand their business or start a new venture in the jurisdiction of the European Union. In this article, we will discuss the key aspects and requirements for opening a company in Malta by foreigners, as well as consider the advantages that Malta offers to foreign businesses.

Advantages of opening a company in Malta by foreigners

1. Access to the European Union market: Malta is a full member of the EU, which provides companies registered in Malta with access to the EU single market.
2. Favorable tax system: Malta offers one of the most attractive tax systems in the EU, including a system of income tax refund to shareholders, which can significantly reduce the effective tax rate.
3. Political and economic stability: Malta is characterized by a stable political system and a growing economy.
4. Highly qualified workforce: The country has an educated and multilingual population that can meet the needs of international business.
5. Flexibility of corporate legislation: Malta offers a variety of corporate structures suitable for different business models.

Key steps for foreigners to open a company in Malta

1. Choosing the company type

Foreigners can choose between different forms of business, such as a private limited liability company (Ltd), a public company (Plc), a partnership, or a branch or representative office of a foreign company.

2. Preparation and submission of documents

To register a company, it is necessary to prepare the constituent documents, including the memorandum and statutes of the association, as well as provide information about the directors and secretary. All documents must be submitted to the Malta Register of Companies.

3. Registration for taxes and social security

After the company is registered, it is necessary to register with the Tax Service and the Malta Social Insurance Fund.

4. Opening a bank account

To do business in Malta, a company must have a Maltese bank account.

Requirements for foreign investors

Although Malta actively welcomes foreign investment, there are certain requirements and restrictions, such as obtaining licenses for certain activities or complying with antitrust and competition regulations. Foreign investors must also comply with local laws and regulations, including labor laws and occupational safety standards.

Conclusion

Opening a company in Malta by foreigners offers many advantages, including access to the European market, favorable tax conditions and a stable business environment. Following Maltese legal requirements and procedures, foreign entrepreneurs can successfully launch and develop their business in Malta, taking advantage of all the advantages that this jurisdiction offers.

 Can I get a residence permit when setting up a company in Malta?

Establishing a company in Malta can be an important step not only for developing your business, but also for obtaining a residence permit in this country. Malta offers a variety of programs and opportunities for foreigners who want to move to the island, while combining business activities with living in a country with a high quality of life, a stable economy and an attractive tax regime. In this article, we will look at how establishing a company in Malta can open the way to obtaining a residence permit, as well as discuss the key aspects and requirements associated with this process.

Ways to obtain a residence permit through a company’s establishment

1. Program for investors

Malta offers several investor programs, which may include the establishment of a company as one of the conditions for obtaining a residence permit. These programs are designed to attract foreign entrepreneurs and investors willing to contribute to the country’s economy.

2. Self-employment

Foreign entrepreneurs may also consider obtaining a residence permit through self-employment, which means starting and running their own business in Malta. To do this, you will need to submit a business plan and confirm the financial stability of the project.

Requirements and procedure

1. Company establishment

The first step is to register a company in Malta, which includes choosing the appropriate legal form, submitting the constituent documents and registering with the relevant government authorities.

2. Proof of financial stability

To obtain a residence permit through a company establishment, you must prove that you have sufficient funds to support yourself and your family, as well as to run a business.

3. Applying for a residence permit

Once a company is established, you can apply for a residence permit by providing all the necessary documents, including proof of business activity and financial stability.

Benefits of staying in Malta

• High quality of life: Malta offers a wonderful climate, rich culture and a high level of social services.
• Stable economy: Malta has a stable economy with low unemployment and a growing GDP.
• Attractive tax system: Malta offers favorable tax conditions for entrepreneurs and foreign residents.
• Access to European Union markets: As an EU member, Malta provides access to the European Union’s single market.

Conclusion

Opening a company in Malta can be an important step towards obtaining a residence permit in this country. It is important to carefully study all the requirements and conditions associated with the chosen program or by obtaining a residence, and prepare the necessary documentation. The process can be challenging, but the benefits of living and doing business in Malta can more than pay for the effort.

 What is written in the charter of a company registered in Malta?

The Charter of a company registered in Malta is one of the key documents defining the legal basis of its activities, the management structure, the rights and obligations of shareholders, as well as many other aspects related to the daily operation of the company. In Maltese corporate law, this document is often accompanied by a memorandum of association, together forming a complete package of the company’s founding documents. In this article, we will look in detail at what is usually included in the charter of a company in Malta, based on general requirements and practices.

Key provisions of the company’s charter in Malta

1. Name and registered address

The Articles of Association must include the full legal name of the company and its registered address in Malta, which serves as the official address for correspondence and legal notices.

2. Objectives and subject matter of the activity

This section describes the main and additional goals of the company, as well as the types of activities that it can engage in. This is important for determining the direction of a business and providing a legal framework for its operations.

3. Authorized capital

The Articles of Association must contain information about the company’s authorized capital, including the total amount divided into shares of a certain par value. Also indicate the rights associated with each type of share, if there are several of them.

4. Shareholders

The document defines the rights and obligations of shareholders, conditions and procedures for the transfer of shares, as well as provisions concerning the conduct of shareholders ‘ meetings.

5. Company Management

The Charter regulates the company’s governance structure, including the appointment of directors, their rights, responsibilities, and management decision-making procedures. The powers of the board of Directors and their responsibility to shareholders are also determined.

6. Financial reporting and audit

The charter sets out the requirements for accounting, preparation and presentation of financial statements, as well as provisions on the company’s audit.

7. Distribution of profit and dividends

This section sets out the terms and procedure for distributing profits among shareholders, including the dividend payment policy.

8. Liquidation of the company

The Articles of Association may contain provisions concerning the conditions and procedure for the liquidation of the company, the distribution of its assets to shareholders after all obligations are met.

Conclusion

The charter of a Malta-registered company plays a central role in establishing the legal basis for its operation, providing clarity and transparency to shareholders, directors and other stakeholders. This document serves as an important tool to protect the rights and interests of all business participants, as well as to ensure compliance with Maltese corporate norms and standards. The preparation of the charter requires careful legal planning and a professional approach to adequately reflect the structure and operations of the company, as well as to ensure its long-term success and development.

 How long does it take to set up a company in Malta?

The establishment of a company in Malta is a process that attracts entrepreneurs from all over the world due to the transparent corporate environment, favorable tax system and strategic location of the country. The speed and efficiency of the company registration process are key factors that entrepreneurs consider when choosing Malta as a jurisdiction for their business. The time required to establish a company in Malta may vary depending on a number of factors, including the type of company, the completeness and accuracy of the documents provided, and the effectiveness of local consultants and government services. In this article, we will look at the main stages of the process of establishing a company in Malta and estimate how long each of them may take.

Stages of establishing a company in Malta

1. Preparation and planning

The initial stage includes choosing a name for the company, determining the type of company, management structure, authorized capital and shareholders. At this stage, it is also necessary to develop a memorandum and statutes of the association — key documents required for registration. Preparation can take anywhere from a few days to several weeks, depending on the complexity of the business structure and the speed of decision-making.

2. Submission of documents

After all the necessary documents are prepared, they are submitted to the Malta Register of Companies. This process can take anywhere from one to several days. Please note that any errors or omissions in the documentation may lead to delays.

3. Registration and obtaining a certificate

After submitting the documents, the Register of Companies processes the application and, upon successful completion of the process, issues a certificate of registration. This stage usually takes from 24 to 48 hours, provided that all documents have been prepared correctly and completely.

4. Additional procedures

After the company is registered, additional procedures may be required, such as opening a bank account, registering with the tax service, and obtaining the necessary licenses or permits. These procedures can take anywhere from a few days to several weeks, depending on the specific requirements and the effectiveness of interaction with Maltese banks and government agencies.

How long does the whole process take?

In general, the process of establishing a company in Malta can take anywhere from a few days to several weeks. If the preparation of documents and registration go smoothly without delays, the company can be registered within one week. However, additional procedures, such as opening a bank account and obtaining specialized licenses, can increase the total time to several weeks.

Conclusion

Effective planning and attention to detail at every stage of the process can significantly reduce the time required to establish a company in Malta. Working with experienced local consultants and legal entities can make the process easier by ensuring quick and smooth registration. Although registration times may vary, transparent procedures and the support of the Maltese Government make Malta an attractive jurisdiction for international business.

 What activities can companies do in Malta?

Companies registered in Malta can engage in a wide range of activities, thanks to the flexible and progressive business environment offered by the country. Malta, as a member of the European Union, provides companies with access to the European single market, which makes it an attractive place to conduct various types of business. From financial services to the gaming industry, from tourism to high technology, Malta offers unique opportunities for international entrepreneurs and companies. In this article, we will look at the main areas of activity that companies can engage in in Malta.

Financial services

Malta is known for its well-developed financial services sector, including banking, insurance, asset management and investment funds. The country offers a stable and secure regulatory environment, which makes it attractive for financial institutions and investment companies.

Gambling business

Malta is one of the leading jurisdictions for online gambling, offering one of the world’s first regulated environments for online casinos, sports betting, poker and other types of gambling. Malta’s regulatory framework provides transparency and security for both operators and players.

Technologies and innovations

Malta is actively developing the high-tech sector, including information technology, blockchain and artificial intelligence. The country offers support to startups and innovative projects, including through specialized incubators and technology parks.

Tourism and hospitality

Due to its unique geographical location, rich history and culture, Malta attracts millions of tourists every year. Tourism and hospitality companies, including hotels, restaurants, travel agencies, and entertainment services, are thriving on the island.

Shipping and aviation

Malta has one of the largest commercial fleet registers in Europe and offers attractive conditions for registering ships and aircraft. Malta’s shipping and aviation sector is supported by favorable tax incentives and a high level of professionalism in registration and management.

Research and development

The Maltese Government encourages investment in research and development in various fields, including health, energy and sustainable development. Companies engaged in research and development of new products can benefit from government support and tax incentives.

E-commerce and online business

Malta provides an enabling environment for the development of e-commerce and Internet businesses, including online commerce, marketing services and digital services. A well-developed IT infrastructure and favorable tax rates make Malta attractive for online entrepreneurs.

Conclusion

Malta offers a wide range of opportunities for international companies looking to develop their business in various sectors of the economy. With its strategic location, progressive regulatory environment and attractive tax conditions, Malta is the ideal place to establish and grow your business in Europe and beyond.

 Should a company in Malta have employees?

The question of having employees for a company registered in Malta is of interest to many foreign investors and entrepreneurs who are planning to start or expand their business in this jurisdiction. Maltese corporate and labor law sets out certain requirements and standards for hiring employees, but the specific obligations of a company to hire employees depend on a number of factors, including the type of activity, the size of the company, and specific business objectives. In this article, we will look at the key aspects regarding the company’s obligations in Malta regarding employee recruitment.

There is no Mandatory Requirement for Employees

In general, Maltese law does not impose a strict requirement that a company must have employees. Companies can operate without directly hiring staff, especially if it is a small business or startup that does not require a permanent presence of full-time employees. Such companies may rely on outsourcing, freelancers, or contract services to perform their business functions.

Specific Features Of Some Sectors

At the same time, some activities or sectors, such as financial services, gambling, tourism and hospitality, may require qualified employees to ensure compliance with regulatory standards and licensing requirements. In these cases, companies may need to hire staff with appropriate qualifications and licenses.

Requirements for Managing Personnel

It is also important for companies in Malta to have at least one director (who does not have to be a local resident) and a company secretary who must be a resident of Malta. This does not necessarily mean hiring full-time employees, as many companies prefer to use the services of professional enterprise service providers to fulfill these roles.

Registration and Social Contributions

If a company decides to hire employees, it is required to register as an employer with the Malta Department of Social Security and make social contributions for its employees. This includes contributions to pensions, health insurance, and other social security guarantees.

Conclusion

Although companies registered in Malta do not need to have employees to carry out their activities, hiring decisions should be based on the specific business needs, regulatory requirements and strategic objectives of the company. It is important to carefully weigh the pros and cons of hiring employees and consider possible alternatives, such as outsourcing or using contract services, especially in the initial stages of business development. Regardless of the strategy chosen, companies should ensure that they fully comply with Maltese labor and corporate laws.

 How do I choose a company name in Malta?

Choosing a name for a company in Malta is a key step in the process of establishing it and requires careful approach and strategic planning. The name not only creates the first impression of your business, but also plays an important role in its branding, marketing, and legal protection. However, the name must comply with Maltese law and be approved by the Register of Companies. In this article, we will discuss the main aspects and recommendations for choosing a name for a company in Malta.

Checking For Uniqueness

The first step in choosing a name is to check its uniqueness. Your company name should not be identical or too similar to existing names of companies registered in Malta. To do this, you can use online verification services or contact the Malta Register of Companies directly. The uniqueness of the name is important not only to avoid legal conflicts, but also to ensure that your brand is recognized.

Compliance with the Law

The company name must comply with Maltese laws and regulations. It should not include words or expressions that may mislead about the nature or scope of the company’s activities, nor should it contain prohibited words or phrases without appropriate permission. For example, the use of words implying State support or international activities usually requires special approval.

Reflection Of The Field Of Activity

It is desirable that the company name reflects its field of activity or corporate philosophy. This helps potential customers and partners immediately understand what your business is doing, and contributes to more effective branding.

Easy Pronunciation and Memorization

Choose a name that is easy to pronounce and remember. This will make it easier to spread information about your brand verbally and avoid confusion. Keep in mind that the company name will be used in different contexts and in different languages, especially if you plan to conduct an international business.

Flexibility and Scalability

When choosing a name, think about the future development of your business. The name should be flexible enough to remain relevant when expanding the scope of activity or geography of work. Avoid overly specialized titles that may limit your growth potential.

International Eligibility

If you plan to do business outside of Malta, make sure that your name does not have negative connotations in other languages and is compatible with the cultural characteristics of your target audience. This will help avoid misunderstandings and promote successful international branding.

Conclusion

Choosing a name for a company in Malta is an important process that requires careful approach and strategic planning. Uniqueness, compliance with legislation, reflection of the field of activity, ease of pronunciation and memorization, flexibility, scalability and international acceptability are key factors to consider when choosing a name. Choosing the right name will not only help you avoid legal difficulties, but will also play a significant role in the success of your business.

 Business Register in Malta

The Business Register in Malta is a central element of corporate governance and regulation, playing a key role in ensuring transparency and accountability of the island’s business community. This register is maintained by the Malta Financial Services Authority (MFSA), which is responsible for regulating all financial services on the island, including banks, insurance companies, investment funds and the corporate sector. In this article, we will take a detailed look at the functions and meaning of the Malta Business Register, as well as the company registration process and requirements.

Functions and meaning of the business register

The Malta Business Register performs several important functions, including:

• Registration of new companies: The Business Register provides the legal basis for the establishment of companies in Malta, ensuring their legal recognition and the right to conduct business.
• Company Record keeping: The Register contains detailed information about all registered companies, including their constituent documents, directors and secretaries, authorized capital and registered address.
• Update on changes in corporate structure: Companies are required to notify the register of any changes in their constituent documents, composition of directors, or share capital structure.
• Providing information to the public: The Business Register serves as an important source of information for investors, partners and regulators, thereby promoting transparency and trust in the Maltese business environment.

Company registration process

Registration of a company in Malta begins with the selection of an appropriate company name and the preparation of relevant documents, including the memorandum and statutes of the association. These documents, together with the application for registration and the corresponding state fees, are submitted to the MFSA Business Register. After checking the documents and paying fees, the company is considered registered, and it is issued a certificate of registration.

Registration requirements

To successfully register a company in Malta, you must meet a number of requirements, including:

• Uniqueness of the company name: The name must not match or be similar to existing company names in the register.
• Presence of at least one shareholder and director: The Company must have at least one shareholder (who can be an individual or a legal entity) and one director.
• Registered office in Malta: The company must have an official registered address in Malta.
• Compliance with corporate and tax laws: The Company must comply with local corporate and tax regulations, including the provision of annual reports and accounting statements.

Conclusion

The Business Register in Malta plays a central role in the country’s corporate life, providing a solid foundation for company registration and regulation. Compliance with registration requirements and procedures not only contributes to the legal conduct of business on the island, but also contributes to the creation of a transparent and trusting business environment. With a well-organized registration process and support from the MFSA, Malta continues to attract entrepreneurs and companies from all over the world who want to take advantage of the benefits of doing business in this jurisdiction.