Company Registration in Malta

MaltaAlthough 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.

COMPANY FORMATION ASSISTANCE IN MALTA

2, 000 EUR
  • Check and reserve of the company name
  • Company registration
  • State fee
  • Legal address for 1 year
  • Appointment of a legal representative for the company
  • Legal consultation

Open business in Malta

6 reasons to start your business in Malta today

Quick and easy formation
Get your company registered in the shortest possible time

Tax benefits
Corporate Tax Rate 5%. Dividend Tax 0%. No tax on capital gains

Tax residency
TIN & Tax Residence Certificate available in a short period

Limited Liability
Liability of shareholders is limited

Banking without borders
EU or EEA corporate account

VAT Registration

For international trading

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.
  1. 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.
  2. 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.
  3. Pay the Registration Fee: The registration fee amount is contingent on the authorized share capital.
  4. 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.
  5. 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).

Key advantages for your business

date range FILL0 wght400 GRAD0 opsz24Registration within a week

task FILL0 wght400 GRAD0 opsz24VAT registration, when necessary

credit card FILL0 wght400 GRAD0 opsz24Iban for borderless banking. EU or EEA business account, debit or credit cards

euro FILL0 wght400 GRAD0 opsz24Expeditious EU access for non-EU entities

fact check FILL0 wght400 GRAD0 opsz24Enhance substance through payroll, leased office, etc.

credit score FILL0 wght400 GRAD0 opsz24Turnkey solution for e-commerce, including a payment gateway

heap snapshot large FILL0 wght400 GRAD0 opsz24Audited financial statements to boost credibility and transparency

group FILL0 wght400 GRAD0 opsz24Limited liability structure

Business-Friendly Environment: Malta has cultivated a business-friendly environment, characterized by a straightforward and efficient regulatory framework. The country actively encourages foreign investment, and its legal system is based on English common law, providing familiarity and confidence to international businesses.

Tax Incentives: Malta’s tax regime is one of the most appealing aspects for businesses. The corporate tax rate is 35%, but Malta operates a full imputation system. This means that shareholders are entitled to a refund of the tax paid by the company, resulting in an effective tax rate that can be as low as 5%. Additionally, Malta has an extensive network of double taxation agreements.

Financial Services Hub: Malta has established itself as a reputable financial services hub within the European Union. The country’s regulatory framework is compliant with EU standards, making it an attractive location for financial institutions, fintech companies, and other businesses in the financial sector.

Language Advantage: English is one of Malta’s official languages, making it an ideal destination for businesses that operate in English. This language advantage simplifies communication, legal processes, and daily operations, eliminating potential language barriers that can be encountered in other business destinations.

Access to a Skilled Workforce: Malta has a well-educated and skilled workforce, with proficiency in English and other languages. The country’s education system, coupled with its strong emphasis on continuous learning and professional development, ensures a pool of talented individuals ready to contribute to your business success.

Ideals for Malta company incorporation:

  • Shipping and yachting
  • E-commerce
  • International Trading
  • International Investments

Support for Innovation: Malta actively supports innovation and technology-driven industries. The government has implemented various initiatives to foster a culture of innovation, making it an ideal destination for businesses in sectors such as information technology, artificial intelligence, and blockchain.

Moving your business to Malta is a strategic decision that can open up a world of opportunities. With its business-friendly environment, tax incentives, strategic location, and high quality of life, Malta provides a conducive setting for businesses to thrive. As you consider expanding or relocating, exploring the advantages offered by Malta could be the key to unlocking the next phase of your company’s success.

Capital Requirements: For a private company, it is mandatory to possess a minimum issued share capital of €1,164.69. Upon incorporation, 20% of this amount must be paid up. The capital can be denominated in any foreign convertible currency, which will also serve as the company’s reporting and tax payment currency, minimizing foreign exchange risks. Additionally, Maltese company law allows for the establishment of companies with a variable share capital.

Shareholders: While companies typically have multiple shareholders, there is the option to establish a single-member company. Shares can be held by various entities, including individuals, corporations, trusts, and foundations. Alternatively, a trust company like Chetcuti Cauchi’s Claris Capital Limited, authorized by the Malta Financial Services Authority, can hold shares on behalf of beneficiaries.

Objects: The objects of a private limited company are unrestricted, but must be explicitly stated in the Memorandum of Association. Private exempt limited companies must specify a primary purpose as well.

Directors and Secretary in a Malta Company: Private and public companies have distinct requirements for directors and company secretaries. Private companies need a minimum of one director, while public companies require a minimum of two. Directors can be individuals or corporate bodies, and all companies must appoint a company secretary. In Malta, a company secretary must be an individual, but a director can also act as the secretary, especially in the case of private exempt companies.

While there are no legal requirements for the residence of directors or the company secretary, having Malta resident directors is advisable for effective company management. Professionals can act as officers or recommend officers for client companies under their administration.

Confidentiality: Under the Professional Secrecy Act, professionals like advocates, notaries, accountants, auditors, trustees, and officers of nominee companies are obligated to maintain a high level of confidentiality. Disclosing professional secrets can result in fines up to €46,587.47 and/or a 2-year prison sentence, as stipulated by Section 257 of the Maltese Criminal Code.

Meetings: Malta companies must conduct at least one general meeting annually, with no more than fifteen months between consecutive annual general meetings. Newly registered companies are exempt from holding another general meeting in the year of registration or the following year after their first annual general meeting.

Formation Procedure: To register a company, the memorandum, and articles of association, along with evidence of the paid-up share capital, must be submitted to the Registrar of Companies. Following this, a certificate of registration will be issued.

Incorporation Time-Scale: Malta companies enjoy a relatively fast incorporation process, taking between 3 and 5 days after providing all required information, due diligence documents, and remittance of funds. For an additional fee, companies can be registered within just 24 hours.

Accounting & Accounting Year: Yearly audited financial statements, prepared in accordance with International Financial Reporting Standards (IFRSs), must be filed with the Registry of Companies. These statements are open to public inspection. Maltese law also allows for a choice of financial year-end.

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

Malta

capital

Capital

population

Population

currency

Currency

gdp

GDP

 Valletta 519,562  EUR $32,912

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.

Diana

“Malta is recognized as a trustworthy location known for its secure commercial landscape, political steadiness, and favourable tax rates. Contact me and I will assist you in establishing your business in Malta.”

Diana Nossenko

SENIOR ASSOCIATE

email2[email protected]

FREQUENTLY ASKED QUESTIONS

The process of establishing a company in Malta is concise and involves the following steps:

1. Submission of essential due diligence documents along with Malta company incorporation documents.
2. Opening a bank account and depositing the required share capital. Private companies have a minimum share capital of €1,165, while public companies require €46,588. The bank account may be opened outside Malta, but proof of the initial share capital is necessary even if an account is not opened.
3. Drafting Memorandum and Articles of Association in accordance with the shareholder’s specifications and the Companies Act.
4. Payment of a registration fee, which varies based on the company's share capital.

A private limited liability company (Ltd) can have one to fifty shareholders, while a public limited liability company (plc) must have at least two shareholders.

Yes, shares in a Malta company can be classified by class, and the creation or modification of share classes is possible post-incorporation. The distinct rights of each share class must be clearly outlined in the Memorandum & Articles of Association.

Yes, shares in a Malta company can be classified by class, and the creation or modification of share classes is possible post-incorporation. The distinct rights of each share class must be clearly outlined in the Memorandum & Articles of Association.

A private limited liability company (Ltd) must have at least one director, and a public limited liability company (plc) must have at least two directors. The maximum number of directors should be specified in the Memorandum & Articles of Association.

While not mandatory for unlicensed businesses, having a Malta-resident director helps establish the company’s residence in Malta for Management and Control purposes. We, as Malta company formation agents and advisors, do not provide in-house directorship to avoid potential conflicts of interest but can introduce suitably licensed professionals.

A Malta company can choose to establish relationships with any bank, whether licensed in Malta or abroad. Digital banks and Electronic Money Institutions (EMI) are increasingly popular. We can assist with the entire banking process, from account opening to maintenance, and provide introductions to wealth managers if needed.

Incorporating a company in Malta is straightforward and typically takes a couple of days from submission to the Malta Business Registry. The local corporate service provider must have all necessary documentation and information beforehand. For EU citizens or companies, incorporation can usually be done within 24-48 hours. Non-EU entities may undergo screening by the Malta Foreign Direct Investment Screening Unit, as per EU law.

Bearer shares are not permitted in Malta companies, aligning with Malta's commitment to transparency in business.

All companies not owned directly by individuals must report on the identity of the Ultimate Beneficial Owner (UBO).

Various commercial entities, including limited and public liability companies (Ltd and plc), commercial partnerships, and associations, can be established in Malta. Specific regulations also allow for the incorporation of specialized companies, such as those with variable share capital (SICAV), protected cell companies (PCC), and recognized incorporated cell companies (RICC).

Malta’s Company Act allows for the re-domiciliation of a company, subject to the laws of the other jurisdiction. Inward re-domiciliation permits a company registered abroad to move its domicile to Malta, provided the originating country allows such a move. Outward re-domiciliation is also possible for a Malta domiciled company, subject to meeting local obligations and complying with the new jurisdiction's requirements.

Malta is a well-regulated jurisdiction offering a range of entities, from private and public companies to trusts, foundations, and protected cell companies. Strong industries, such as intellectual property, remote gaming, financial services, maritime/aviation, and pharmaceuticals, contribute to Malta's global standing. The cost of setting up a company in Malta is reasonable, with professional fees more modest than in comparable European jurisdictions. Malta provides foreign investors with an efficient tax system approved by the European Commission and the OECD, allowing qualifying shareholders to receive a partial refund of corporate tax paid.

Selecting a Malta Company Formation Agent is crucial, and we, at Regulated United Europe, offer a dedicated team that understands your business needs, possesses expertise, and provides pragmatic solutions. We consider ourselves business partners with our clients, offering the right advice at the right time. Book your consultation with us today.

RUE customer support team

Milana

Milana

“Hi, if you are looking to start your project, or you still have some concerns, you can definitely reach out to me for comprehensive assistance. Contact me and let’s start your business venture.”

Sheyla

“Hello, I’m Sheyla, ready to help with your business ventures in Europe and beyond. Whether in international markets or exploring opportunities abroad, I offer guidance and support. Feel free to contact me!”

Sheyla
Diana

Diana

“Hello, my name is Diana and I specialise in assisting clients in many questions. Contact me and I will be able to provide you efficient support in your request.”

Polina

“Hello, my name is Polina. I will be happy to provide you with the necessary information to launch your project in the chosen jurisdiction – contact me for more information!”

Polina

CONTACT US

At the moment, the main services of our company are legal and compliance solutions for FinTech projects. Our offices are located in Vilnius, Prague, and Warsaw. The legal team can assist with legal analysis, project structuring, and legal regulation.

Company in Lithuania UAB

Registration number: 304377400
Anno: 30.08.2016
Phone: +370 661 75988
Email: [email protected]
Address: Lvovo g. 25 – 702, 7th floor, Vilnius,
09320, Lithuania

Company in Poland Sp. z o.o

Registration number: 38421992700000
Anno: 28.08.2019
Phone: +48 50 633 5087
Email: [email protected]
Address: Twarda 18, 15th floor, Warsaw, 00-824, Poland

Company in Czech Republic s.r.o.

Registration number: 08620563
Anno: 21.10.2019
Phone: +420 775 524 175
Email:  [email protected]
Address: Na Perštýně 342/1, Staré Město, 110 00 Prague

Finwyn Consultancy LTD

Please leave your request