Company Registration in Malta

Although Malta is traditionally considered to be not quite a full-scale tax-free jurisdiction, opening a company in this country is extremely profitable and prestigious. You can run any kind of lawful business within the European Union. Malta is a great place to open your representation, owing to the favorable geographical position, stable, and well-developed economy offering access to multiple local markets. The most attractive feature, especially for the shipowner with vessels of up to 1000 tons, is the exemption provided by individual income tax. If you are one of those considering this jurisdiction, your business presence can be set up through one of these forms below. Incorporation of a company is a very exciting experience, and choosing a proper jurisdiction contributes a lot to the success of a business. Located in the Mediterranean, Malta has become one of the most popular destinations for entrepreneurs looking forward to having an enabling business environment. We will discuss below the process and advantages of company registration in Malta. The strategic location, robust rule of law, and business-friendly policy of Malta are some of the factors making it attractive for international businesses. As a member of the European Union, Malta offers access to the EU market and can act as a gateway for those companies willing to expand to the rest of the world.

Requirements for the Setup of a Private Exempt Company in Malta

• Registration: Four weeks is a general estimate for when the company can be incorporated.
• Company Name: Names can be in any language, in the Latin alphabet; the name must be unique and must not suggest any association with an activity that is unlawful or against public policy.
• 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.
• The company secretary: Any Malta Private Exempt Company shall have a company secretary, apart from the director who cannot assume both roles; however, this can be an individual or corporate body of any country.
• Annual General Meetings: Shareholders are obliged to hold an annual meeting which can take place in any country.

The following is to be followed as a step to incorporate a company in Malta:

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

ADVANTAGES OF THE JURISDICTION

If you are in doubt about choosing Malta company formation or would like to know more about other jurisdictions, here are several reasons for you to support Malta company registration:

• Financial and economic stability.
• Fast and easy registration procedures. A new company can be registered in a period of two weeks, and a ready-made company can be bought in one day.
• There is no necessity for the personal presence of the beneficiary in Malta.
• Data protection. Nominal owners, Malta residents, will represent the interests of the beneficiary with full confidentiality.
• Favorable fiscal legislation.

If you plan to initiate the procedure of company formation in Malta, the following preparatory steps are to be performed:

• Clearly articulate what business targets you would like your Maltese company to achieve.
• Select, check, and reserve the name of your future Maltese company.
• Providing information on shareholders, ultimate beneficial owners, and future managers of the Maltese company.
• Providing a registered address for the future entity.
• Paying in the minimum amount of statutory capital.
• Drafting the Memorandum and Articles of Association for the future Maltese company.
• Preparing and filing an application—a full set of documents—with the registrar.
• Registration for tax and social security purposes.
• Obtaining licenses and special permits if they are deemed necessary.

It has to be underlined that the specific registration plan may slightly differ depending on the business purposes and the case details. More accurate consultation can be obtained with the specialists of Regulated United Europe.

Tax Information

For those considering company registration in Malta, the following tax information can be useful for decision-making purposes:

• 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 – depending on the source of income and the taxpayer’s status.

* Whereas the corporate income tax rate as per local legislation is formally quoted as 35%, it is 5% for trade companies in practice. First of all, the companies shall pay tax at the rate of 35% of the total income received at the beginning. However, 6/7 of the amount that is refunded in the subsequent months equals 30%. For dividends and a non-dominating shareholding, the refund is 5/7 of the tax paid, which effectively results in 10% corporate income tax for the business venture. In some cases, it is even possible to get a full exemption from paying corporate income tax at all. Should you need more specific information on the advantageous tax conditions for your specific business case, please don’t hesitate to contact us.

A Malta Private Exempt Company has the following advantageous characteristics

10 advantages of registering a company in Malta

• You will be able to establish a business in a prosperous EU country, boasting an economy resilient to financial shocks, a stable currency and with no currency controls whatsoever.
• Company registration in Malta probably holds the record for the shortest. You might consider getting some lawyers involved to help you by making sure you have everything just right the first time; it will not take you more than 10 business days to open the account.
• Later on, the Maltese will not mind if you move your whole business to their country. At least, there won’t be any administrative, immigration, or economic consequences of such a step—contrariwise, “moving” will require minimal monetary costs.
• Neither the property, nor the authorized capital of Maltese companies is taxed. The transfer of shares is not accompanied by the payment of stamp duty.
• The founders and management of companies registered on the islands can be foreign citizens and foreign companies.
• The process of company registration in Malta can be provided remotely, not requiring your personal presence, though the Maltese Archipelago itself is one of the most picturesque places in the Mediterranean, with its ancient history and beautiful nature, which you definitely should visit at least once.
• For those foreign entrepreneurs who do not want just to open a company in Malta but also plan to move themselves, the immigration legislation of the country provides for the possibility to expedite 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.
• Malta offers an excellent environment for certain kinds of business activities. For instance, if your way is cryptocurrencies, the registration in Malta will help your company take the ICO license. Other significant sectors include fintech, maritime, aviation, film, media, and tourism.
• The banking system in Malta is both Europeanly reliable and convenient, which is also relevant for entrepreneurs who are just beginning their activity abroad.
• Tax optimization. In Malta, it is allowed for companies registered in the country to use tax deductions against profit in order to create small and medium-sized businesses, sometimes allowing even the reduction of the income tax rate to a symbolic 5%. Malta has agreements on avoiding double taxation with 70 countries. All the prospects of the Maltese tax system put together encourage some experts to compare this island state with the classic offshore companies.

Corporate taxation in Malta

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

It is the possibility of substantially decreasing fiscal payments that attracts foreign entrepreneurs to the islands. And, of course, special conditions for certain areas of business we have already discussed above and the benefits provided in the legislation are used. How does it work?

This law allows the company’s shareholders to return part of the corporate tax received upon realization of profits from its activity, proportionally depending on some percentage based on the type of activity from which the dividends were received and the accumulated benefits of the tax transferred to the treasury, reducing the real amount of corporate tax to 5-12%.

This deduction returns to the account of the company’s shareholders and does not return to the bank account of the company, so for optimal taxation, the so-called “two-level scheme” is used, when in the country there is not a registration of 1 company but 2 (holding).

In a holding company, one company is the shareholder of another company. And because the portion of taxes returned to the founders is not taxable income, such funds 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 in an electronic form.

VAT in Malta

The standard VAT rate for companies registered in Malta is 18% of the gross profit, while for certain types of products on the islands, the VAT rates are reduced to 7%, 5%, and even 0%.

Contributions to social funds

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

What legal form should I choose when opening a company in Malta?

Considering doing business on the islands, there are at least the following forms, such as limited and unlimited shareholder partnerships, private limited companies, open joint stock companies with limited liability. Concentrating our attention on more detail on the most common forms of business registration in Malta, it will be appropriate in the last two sections. Great to start a small or medium-sized business.

Limited liability company (LLC — Limited liability company)

The peculiarity of this legal form is that the responsibility of management and shareholders for the results of the company’s activity is limited to the size of their share in the authorized capital. The authorized capital should be at least €1,165. 20% of this sum is to be deposited into the corporate account with a Maltese bank prior to registration.

It is required for an LLC to have at least 1 director and 2 to 50 shareholders. Directors and shareholders can both be any individuals and firms of whatever usual residence. In some instances, it may so happen that a Maltese limited liability company is singly owned by an individual or a legal entity.

As far as activities of joint-stock companies and communication with regulatory authorities are concerned, only a staff secretary is allowed to deal with such activities. In this regard, this post can only be occupied by any person with any tax affiliation.

Public Limited Company (PLC – Public Limited Company)

It has a number of critical differences from just that type of company with limited liability:

1. Such company’s authorized capital is divided into shares, which can be traded both in and outside the Republic of Malta Stock Exchanges;
2. The minimum authorized capital for an offshore company in Malta is €1,164.69, from which 20% needs to be paid up when signing the Company’s Foundation Agreement;
3. At a PLC, the shareholders may be unlimited in number, whereas there has to be at least two directors.

How to Register a Company in Malta?

Establishing a company in Malta may be described as a process one can break down into 8 brief steps:

1. Pre-select an appropriate legal form based on the features of your future business activity.
2. Creation and approval of a unique name for your company. It can be written in absolutely any language, but it will be written in Latin anyway. Also, it is not welcomed when the name of the company suggests illegal activity or activity which is regulated by state licenses on the islands.
3. Further preparation of the company’s documents is carried out—the foundation agreement, which is also called a memorandum, and the charter.
4. To open a company in the Republic of Malta, the organization should have a registered office. According to the law, it shall be a real premises owned or leased within the country, where important documents of the company shall be stored.
5. You will be required to open a company current account in any Maltese bank and pay part of your foundation capital into it. For PLC, whose shares can appreciate or depreciate in value, such current account should hold the value equivalent to 25% of the authorized capital of the firm, i.e., the capital prior to trading on the stock exchange.
6. Also, you need to register your new company with the tax service: automatically, your legal entity will get a tax number.
7. The state license will be required in carrying out some kind of activity.
8. Finally, when all papers are ready and agreed upon and when additional requirements are met, it will be necessary to pay a state fee and submit the completed form together 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 gives them unique numbers and leaves them in storage. You are also given a certificate of registration of the company, based on which all further commercial activities will be conducted. It is necessary for the companies, which were registered in Malta, to confirm their status every year.

How does the state control business in Malta?

All the companies, registered in Malta, have to compile and file a financial report as well as a tax return, even if they have not operated in the islands.

After the close of the reporting period, the company may take up to 10 months in its preparation and submission of financial statements.

The standard end date of a fiscal year in the Republic coincides with the end date of a calendar year. The first reporting period of the new company starts from the moment of its constitution and continues until 31 December. Until going to the registration chamber, the financial statements should be reviewed and approved by the board of Directors assembled on this occasion. The auditors of the company shall prepare a tax return based on the financial report. A tax return is payable to the Internal Revenue Service of the Republic of Malta by September 30 of the year succeeding the reporting period.

In general, every entity resident in Malta is required to perform accounting audits and hold an annual meeting of management and shareholders.

Permissible corporate forms to incorporate a company in Malta

Following are the kinds of corporate forms through which a Maltese company is incorporated:

Steps for Company incorporation in Malta

For the incorporation of a company in Malta, the following procedure should be followed:

• The type of business is selected;
• The name is approved;
• Preparation of the constituent documents;
• Opening of a bank account in Malta and initial deposit;
• Registration of a company for tax purposes;
• Obtain a license in Malta, where required;
• Pay 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%. The tax returns and the financial statements ought to be filed 9 months before the close of the reporting year. All Malta companies must conduct accounting audits over regular time periods. However, the audit to be engaged will depend on the criterion asset size and the size of the company. 10% is to be paid to social security of employees.

Documents needed for Malta company registration

To incorporate a company in Malta, you are required to prepare the following registration documents, usually necessary for any type of company:

• Information about the name of the company;
• Deed of incorporation;
• Confirmation of depositing the capital into a local bank account;
• Information about your registered address in Malta;
• Information about the directors/shareholders/secretary.

The representatives of our company are involved in supporting the registration of a company in Malta. This concerns both corporate support and questions of the financial sphere. Our experts can advise you on such issues as how to open a company in Malta and register a trademark in Malta: contact information is available on our website.

Company Registration in Malta

The incorporation of a company in Malta is considered a strategic move to further expand the scaling-up process of the business, given its location in the very center of the Mediterranean, easily reachable to European, African, and Middle Eastern markets.

It has a stable economy, a strictly regulated and reliable financial system, as well as state support for entrepreneurship. In the article below, we will enumerate the requirements and procedures to be observed in setting up and registering a company in Malta.

Advantages of setting up a company registration in Malta

Malta is a prestigious country with many advantages for international business. Malta is a common law country, and the great majority of Maltese legislation is based on English law. This provides much stability and clarity to the legal environment. It has gained recognition for having the widest legal framework for financial services in the country.

Opening a company in Malta offers numerous advantages to entrepreneurs, such as:

• Access to the European Union market. As part of the EU, Malta gives businesses access to the vast European market. Indeed, this can be considered one of the major advantages of setting up a business in Malta for all those entrepreneurs willing to expand their business not only in Europe but internationally as well.
• Economic and political stability. It is here that registering in Malta can raise the level of trust and reputation among investors, partners, and clients because, in general, Malta has established itself as a country with a sustainable economy and politics, offering favorable conditions to do business in general and contributing to its long-term sustainability.
• Licenses issued in Malta, due to the principles of the single market, may operate throughout the European Union, which means that it shall make it much easier for entrepreneurs to expand their activities in other EU countries.
• Developed financial sector. The financial sector of this country is one of the 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 corresponds to international standards. Malta has established itself as a fast-moving country to follow financial changes.
• The Government of Malta creates favorable conditions for the registration of FinTech companies in Malta and thus for the quality provision of services by Maltese FinTech companies to their clients. This includes the following: Favorable tax policy.
• Even though Malta provides a relatively high corporate income tax rate of 35%, there are tax deductions that can be made to substantially lower the tax burden on companies, especially for non-resident businesses. There exists a system of tax refund which might reduce corporate tax up to as much as 5% to the shareholders, among the lowest in the EU.
• A supportive business environment. It provides a very friendly environment for business development in almost all spheres, which enables it to attract lots of foreign investment and establish international business relations accordingly. Shipping, international trade, fintech, IT, and shipping are some of the most popular destinations for Malta company registration.
• Visa-free zone. As a member of the Schengen Area, traveling to and from other Schengen Agreement countries is easy and hassle-free, which is a great asset in business operations. Besides, being a member of the Schengen Area contributes to economic cooperation and the tightening relationships between the member states.

All these aspects make Malta a “center of attraction” for global companies searching for 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 process without excessive bureaucracy. The basic stages of the registration process include the following:

1. Choose the legal form of the company and its name;
2. Preparation of the Constituent Agreement and Charter, preparation of other constituent documents;
3. Filing the application and documents with the Malta Business Register – MBR;
4. Payment of registration fees.

The stage of choosing the type and the name of the company should be highly planned, taking into consideration not only legal but also strategic aspects. It needs to consider any future plans or business needs and comply with all the regulatory requirements set forth.

In choosing a company name, the following should be considered:

• Uniqueness: The name should not be identical to any other company in Malta;
• Name reservation: The name should be pre-approved prior to filing since it is subject to availability as confirmed by the Malta Company Registry;
• Name language: The company name should be either in English or Maltese;
• Legal requirements: The company name should state the legal form of the proposed company—in particular, in the case of private limited liability companies, the company name shall include the word “Limited” or “Ltd.”;
• Restrictions: Some words and phrases are restricted or may require special permission. Examples include words that denote government activity.

The second step in the process of company registration in Malta includes the preparation of the Foundation Agreement, and should include all information on the name of the company, the address where it is registered in Malta, the objectives of its business operations, the details regarding the founders/shareholders, type of shares, and par value. The minimum number of founders required in the case of a private company is one, while for public companies, there need to be at least two. Information regarding directors and secretary should also be provided in the document.

Second is the creation of a Charter that outlines internal management procedures, such as how founder/shareholder meetings should be conducted, how the directors are appointed, and how profits are to be shared. Such a document must take the form as required by the laws of Malta.

Maltese Legislation prescribes certain regulatory requirements for corporate directors and shareholders. Directors, being in a position of dual status—as individuals and legal entities—are required to strictly comply with legal provisions, timely submission of financial and other reports, and protection of interests both of the corporation and the shareholders. The shareholders are mostly founders who participate in the core of the management process by attending annual meetings and voting on various significant issues, such as the appointment of directors and the approval of financial statements.

Once all the documents are ready, filing with the Maltese Business Register has to be done either in person or by an accredited agent. Once the documents are cleared and approved, the Registry will issue the certificate of registration of the company in Malta.

Thus, company registration in Malta involves complex documentation and full adherence to the legal framework, so that the general level of transparency and efficiency of the management processes could be increased. After the above steps have been taken, you’ll need to submit an application for the opening of an account in Malta in the name of your company and apply for licenses, depending on the nature of the activity being planned by the firm.

Open a company in Malta: categories of corporate structures

Malta is open to 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 timescale for setting up a business in Malta

When establishing a company in Malta, some of the most crucial considerations are the timescales and registration fees. In fact, this registration fee does depend on the authorized capital of the company. By an approximate calculation, for an authorized capital of 1,165 euros for a private limited liability company, the fees for registration begin with 245 euros and rise in proportion to the amount of the capital authorized. In such cases, when the capital exceeds the figure of 1,500,000 euros, the maximum rate of the registration fee may be 2,250 euros.

Generally speaking, in respect of costs related to the set-up of a Maltese company and its annual maintenance, apart from the fees for various services, such as audit and accounting services, Malta offers a lower amount compared, for example, to Cyprus where similar conditions are offered for doing business.

For detailed and updated information and professional assistance in Malta company formation, please feel free to contact our attorneys at law in Malta. In this way, you’ll be able to comply with all the formalities required and be assisted in accelerating the registration procedure.

Tax Treatment and Accounting Filing in Malta

Many factors make the Maltese corporate tax system appealing, whereby several companies are registering as non-residents for international operations. For instance, the standard corporate tax rate imposed on all companies registered in Malta is pegged at 35 percent. Against this backdrop, the real effective tax rate can be reduced to 5 percent due to a strange mechanism of refunding tax to shareholders upon corporation tax payment.

Companies registered in Malta have been exempted from tax payment on dividends, interests, and royalties, enabling the same to distribute dividends without tax withholding. For non-resident companies, only income earned in Malta is taxed, while exemption has been extended to all forms of income earned outside Malta.

The standard VAT rate is 18% and applies to most goods and services. The country actively participates in international agreements on the avoidance of double taxation, casing thereby 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 numerous double taxation agreements with over 70 countries.

In the case of Malta, the accounting and reporting principles follow both local and international standards similar to the UK and the relevant EU directives. Companies are obliged to keep records that enable financial condition and performance to be fairly reflected. Annual financial statements should comprise a balance sheet, an income statement, a cash flow statement, and explanatory notes. This is a crucial document both internally and for provision to various stakeholders outside the company, such as investors, creditors, and tax authorities. Every year, a company has to file with the Register of Companies its report on items concerning the company, its directors, and shareholders.

Competent professionals providing accounting services in Malta can be included in the company, and due to delays or infractions, fines and sanctions, among other measures, are imposed; therefore, the timely submission of the financial and annual reports is of great relevance. The letter of compliance must be given to international standards and legislation, as well as the periodic updating and review of the financial statements.

Registration of a Company as a non-resident in Malta: which are the priority sectors?

Malta is an attractive destination for people seeking new fintech and IT opportunities, or for those who dream of getting a digital nomad visa. The government is trying to create all the conditions that are necessary for IT and fintech companies, including reliable regulation, and invest in high-tech infrastructure development.

Malta regularly appears in the ratings of leaders among European fintech hubs. In 2023, it took 3rd place (after the UK and Sweden) in the ranking of countries that have created a full-fledged and efficient environment for the development of fintech companies. Headquartered here are many major international fintech companies, such as Nexo and eToro.

Moreover, the founders want to establish a fintech startup in Malta because of highly educated talent able to satisfy various needs for technical and innovative skills. Established brands are open to working with new entrants, too, which may help identify opportunities within areas like InsurTech and RegTech.

The MFSA has designed a regulatory FinTech sandbox with the express aim of providing financial service providers with a safe environment in which to test their new products and services. Malta also introduced a new authority, the Digital Innovation Authority Malta, which also certifies DLT platforms.

By registering a crypto business in Malta, a country positioned as progressive and crypto-friendly, one can get the prerequisites for long-term development. The Virtual Financial Assets Act was brought out in 2018, and since then, activities of those who provide VFA services-for example, consultants, brokers, portfolio managers, or crypto exchanges-have been regulated.

The gaming industry of Malta keeps developing, hence making the island 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 absolutely revised to meet the growing needs in this area. The MGA has introduced the Sandbox Framework that addresses the VFAs and virtual tokens adoption, ITA in the gaming industry, for purposes of financing gaming services.

Malta has been very instrumental in developing the ICT sector. Malta is rated 12 from the 28 EU countries in terms of the implementation of the ICT sector. Opening an IT company in Malta opens opportunities for enterprise development and growth in a secure business environment not only for large corporations (by the way, Microsoft, IBM, and Oracle offices are located here), but also for solo founders 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 apply to live and work in Malta for one year, provided such a visa application can prove that the applicant earns a minimum annual gross income of at least EUR 32,400 per month. As we have already mentioned, a digital nomad visa in respect of self-employment could be issued once the applicant is an LTD or a company director registered in Malta.

Besides, those who would wish to open an IT company in Malta may address the Innovation Center at MITA, taking part in the YouStartIT program. Startups of technology will be able to have the possibility of confirming, testing and rolling out their idea of business and developing a product within 20 weeks. For those projects that are going to be approved by MITA, Preseed investments are going to be provided in the sum of 30 000 euros.

Malta business grant programs provided by the Government

A number of business grant programs are available through the government in Malta to facilitate the development of companies’ businesses. Those grant programs take a number of shapes, such as in the form of funds, advice, and other resources that are provided to those companies which fit into the desired criteria.

Erasmus for Young Entrepreneurs

Erasmus for Young Entrepreneurs is a European Union Program dedicated to supporting aspiring entrepreneurs in acquiring the necessary skills to run a Small or Medium Sized Enterprise. This program allows time to be spent with an experienced entrepreneur in one of the EU member states, the UK, and COSME countries, including Malta.

The program enables new entrepreneurs to work with an experienced entrepreneur in another participating country to exchange experience, training, and networking. This stimulates inter-state transfer of knowledge and experience from experienced entrepreneurs to those willing to set up a venture in Malta.

Application, selection, preparation, and conclusion of the contract, and implementation comprise the four major phases of the entire program. In the application process, interested new entrepreneurs and business owners apply online, after which they select an intermediary organization. Once the application is accepted, it allows the NE and HE to log into an online catalog profiling, where they can start recruiting.

During the preparation and conclusion phase of the contract, once the selection is accepted by both parties, an activity plan is prepared using their IO. The activity plan shall be an online document that contains the objectives and expectations of the exchange; business/ work /curriculum; tasks; responsibilities; and legal implications for those willing to exchange valuable experience when starting a small business in Malta. In the implementation phase, NE and HE realize the stay abroad according to the objectives mentioned in the activity plan.

The Program will support the placement of a new entrepreneur, provided that all below-mentioned conditions of the Program are satisfied, namely mutual interest, assistance from acceptable IO, acceptance of entrepreneurs and signing of the necessary agreements by all participating parties. Any sector of private economy may join this program. Project participants should represent micro, small or medium-sized enterprises.

NE financial support under the programme covers 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 defined in the financial agreement signed between NE and IO. It 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 Scheme is one such opportunity, offering a chance for those interested in Malta as a business host to study business practices abroad, expand their professional network, and develop important international experience.

Smart and Sustainable Investment Grant

The “Smart and Sustainable Investment Grant” scheme launched by Malta Enterprise will, in turn, provide financing to applicants interested in registering a company in Malta, acting as an incentive for sustainable investment. This comes after the ambitious commitment of the European Union to become the first climate-neutral bloc by 2050, an ambition that will require substantial investment by the EU and thus by the national and private sectors. The scheme offers support to businesses in investment that would also foster the shift towards more digital and environmentally sustainable business practices.

To benefit from the scheme, applicants must be registered as a limited liability company, partnership, or sole proprietorship that undertakes an economic activity with commercial real estate in Malta. The investment project must focus on the attainment of sustainability, the enhancement of environmental efficiency, or digitalization contributing to growth potential. The applicant also must not have arrears in VAT, income tax, and social security that are over twelve months in arrears, and must have at least one full-time employee registered with Jobsplus.

The maximum grant available to support eligible investment is 50% of eligible costs to a maximum grant of 100,000 euros per project. There is also a tax credit available that can be granted to a value of up to 40,000 euros per project 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.

Among the acceptable costs for companies registered in Malta, one might mention an investment in equipment and technologies that provides for quantitative reduction of CO2 emissions. In addition, it is also acceptable to invest in specialized technical services and acquiring technologies allowing the measurement of parameters associated with the carbon footprint of a company.

The application for participation in the scheme, supported by all necessary documentation, should be submitted via the Malta Enterprise client portal. While doing this, all details and expenses must be included. The application should be supported by a technical analysis carried out by a competent professional, namely a technical analysis of environmental and energy savings by an engineer, quantifying benefits which will be attained through the project.

This, in turn, means a very good opportunity for businesses setting up in Malta to invest in sustainable technologies and practices that contribute to enhancing their competitiveness and economic sustainability.

Protection of Intellectual Property and Compliance with Local Laws

In Malta, intellectual property protection is granted by several statutes and regulations that accord legal protection to copyrights, patents, trademarks, and other manifestations of intellectual property. The main legislation applicable in this area is the Intellectual Property Act, which was amended in 2000.

Strong intellectual property protection has become a necessity in Malta’s rapidly changing business environment. Key aspects of intellectual property protection in Malta include:

The protection of intellectual property assets in Malta provides essential support to promote innovation while the protection and commercialization of intellectual assets help businesses and sole proprietors.

Company registration in Malta allows entrepreneurs and business leaders to open up international prospects. Among other things, Malta attracts with its effective tax policy, stable economic and political regimes, and also its status as a full member of the EU, which provides additional preferences for businesses.

Establishment in Malta is rather straightforward, be it the choice of the legal entity form, submission of documents, and qualification requirements for directors and shareholders. In this regard, several government funding options are available from the Government that may encourage growth and innovation towards sustainable development in the business community.

A sound basis for doing business, encouraging the protection and commercialization of intellectual property, is provided by the Maltese legislation on protection of intellectual property. With all these considerations, Malta is considered a significant region for those willing to expand their business in Europe and outside the European continent.

What types of companies exist in Malta?

Just like in any other European leading financial center, there are different forms, provided by law, of carrying out the business activity in Malta. The location of this island nation attracts entrepreneurs from all over the world, who consider starting a business here due to its strategic location, stable economic development, favorable tax regime, and flexible legislation. Let us consider the main types of Maltese companies available for both local and foreign investors in more detail.

The choice of the legal form of a company in Malta will depend on many factors, which may also include the scale of business, type of activity foreseen to be carried out, investment objectives, and asset protection. In view of flexible legislation and favorable tax regime, Malta has ample opportunities to offer to businesses of different types and sizes, reinforcing Malta as an attractive jurisdiction for international investors.

Table oftax rates for Maltese companies:

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

The size of the charter capital is one of the most critical moments in the incorporation of the company and further activity, correspondingly. The amount of charter capital is defined by the type of company and a field of future activity and at the same time, it must fit in the norms provided by Maltese legislation. In this article, we will take a closer look at what charter capital requirements exist for various company types in Malta, such as private limited companies, public companies, and specifics concerning specialized sectors.

Private Limited Companies Limited Companies

In Malta, the minimum authorized capital for a private limited liability company-Ltd.-is only 1,200 euros. Also, it is relevant to underline that you have to pay at least 20% of the total authorized capital when registering your company. This means that you have to deposit only 240 euros in order to start your business. The remaining part of the capital can be subsequently covered according to the constitutive documents and internal decisions of the company.

Public Limited Companies

In the case of public companies of Malta, Plc., the minimum level of authorized capital set is higher, 46,600 euros. Similar to private companies, a specific percentage of the authorized capital should be covered upon registration. In the case of a public company, this also amounts to 25% of the nominal value of the shares issued at the time of incorporation.

Specialized branches and additional requirements

Depending on the peculiarities of the organization’s activities, additional requirements may be set with respect to the size of the authorized capital. Thus, for institutions operating in the financial sector, such as banks, insurance agencies and investment funds, the capital requirements will be substantially higher and are controlled by the appropriate regulating bodies in relation to the risks that occur within the framework of their activities.

Practical aspects of the authorized capital

The size of the authorized capital not only reaches the limit by law but also acts importantly in financial planning and strategy during the companies’ issuance. It can be used to prove the stability of the financial situation to creditors, investors, and business partners. Besides, sufficient share capital will allow the company to cover the initial periods of its operation against start-up and operational costs.

The share capital is the very foundation upon which a company is established and can begin its operation in Malta. In this regard, the law provides various minimum requirements depending on the type of company and the extent of operation. In planning a business, from the viewpoint of legal requirements and taking into consideration the needs of the enterprise’s activity in the future, it is necessary to deliberate on the size of the authorized capital thoroughly. This will not only save you the headaches of curatorship but will also help your achieve your long-term goals of business.

Should a Company in Malta Have a Local Director?

Another relevant issue concerning the development and set-up of a business in this island is that every company registered in Malta needs to have a local director. Having acquired EU membership, Malta offers an unparalleled legal and fiscal environment for international business in attracting investors worldwide. The following article shall explore the necessities for managing the staff of Malta companies and will revisit the role that a local director plays in maintaining compliance with the local legislation.

Legal requirements about company management

Malta law does not impose as a prerequisite, compulsorily, the presence of a local director for all companies. Again, however, there are strict conditions and circumstances for which the presence of a local director or manager would be of benefit, or sometimes necessary, in order to carry out successful operations of business and indeed for tax compliance.

Benefits of the Local Director

• Tax residency: For the company to be able to avail itself of the tax regime in Malta, it must be shown that management and control are exercised in Malta. Having a local director-in particular if the sole director or a member of the majority of the local board of directors-would further establish tax residency in Malta for the company.
• A local director is more likely to be reasonably familiar with the Maltese market and legal environment, which would help to carry out the business more efficiently and in such a way as to minimize the legal risks.
• Bank operations: A local director will make opening and maintaining company accounts easier in Malta since the policies of local banks regarding anti-money laundering may require local management personnel.

Requirements as to company managers

While Maltese law does not necessarily require all companies to have a local director, it is of importance that management personnel, including directors, be suitably qualified and capable of ensuring that the company is managed accordingly and in observance with local and international regulations.

The selection of a Maltese corporate governance structure should be considered with reference to specific business aims, tax strategy and compliance needs. Having a resident director can hold substantial benefits in terms of tax planning, smoothing banking operation procedures, and enhancing compliance with the Maltese legislation. Still, such a decision should be made only with consideration for all aspects related to doing business in Malta and includes additional costs and responsibilities for hiring a local director. It will always be advisable to consult with local lawyers and tax consultants as to which management structure is best for your business.

What are the government fees of setting up a company in Malta?

Setting up a company in Malta comes with a number of government charges and fees. The cost of such expenses, however, varies in relation to the company type, size of authorized capital, and other factors. Malta is a very appealing country in terms of business development due to not only its tax system but also because of its membership in the European Union; for this reason, it is also an increasingly popular jurisdiction among international investors. In this article, we shall look into the principal government fees and charges applicable to the incorporation of a Malta company to provide an indication of the start-up costs.

Registration Fees

Apart from the registration fee payable to the Registrar of Companies, all other costs involved in setting up a company in Malta are relatively minimal. The amount one pays depends on the size of issued and paid-up share capital. As of this writing, the following fees are payable:

• Authorized capital up to 1,500 euros, or the fee is 245 euros.
• The fee is also increased with the increase in authorized capital, rising to a maximum of 2,250 euros for capital over 2.5 million euros.

These amounts are indicative and may be modified, so it is advisable to consult the rates in force prior to establishing any company through the official website of the Registrar of Companies of Malta.

Annual fees

Besides the registration fee, Maltese companies must pay an annual fee as well, which is also connected with the amount of the share capital of the company. Such a fee is for maintaining your company as an active one in the Company Register. The amount of the annual fee is also different and may reach up to 1,400 euros depending on the authorized capital.

Extra charges and costs

Depending on the specifics of a given business and documentation requirements, there might be other extra costs for services related to the notarization of documents, apostilles, translations, and so on. In the case of seeking professional help to register a company, legal and consulting services have their price.

Setting up a company in Malta presupposes some initial costs related to government fees and charges. A future businessperson should be very attentive to financial planning and include even the smallest payment in order to successfully establish a legal business. Despite the necessity to pay several fees, Malta remains attractive for international investors due to its strategic location, favorable tax environment, and clear regulatory requirements.

What does it cost annually to service a Malta company?

Maltese companies attract businesspeople with their beneficial tax system, good strategic location and strong connections. Still, apart from the initial costs of such a process, one needs to consider the annual cost of servicing while registering a company. Let’s find out in detail what the annual cost of servicing a company in Malta is.

The annual cost of maintaining a company in Malta is dependent on many factors, such as the type or size of the company and its operation and reporting requirements. You can expect an average of 3,000 euros at the starting price per year, which will increase depending on the level of complexity and the additional services that will be required. That makes Malta fairly attractive to many international businesses seeking to optimize their tax obligation but also take advantage of other incentives this jurisdiction has to offer.

What is in it for me? What are the main advantages of setting up an organization in Malta?

Setting up an organization in Malta provides a wide range of business benefits because of an unmatched combination of internationally renowned regulation, an attractive taxation system, and strategic location. Consider the key advantages of setting up an organization on this Mediterranean island:

A favorable tax system

Malta has one of the most advantageous corporate tax regimes anywhere in the world, including a tax refund system to shareholders that substantially reduces the effective tax rate. Whereas the nominal corporate tax rate is 35%, the effective rate could be considerably lower due to the system of tax refund to shareholders. This makes Malta attractive for international companies wanting to reduce their tax burden.

Sustainable legislation

Malta has a sound legal environment based on both common and continental law principles, hence predictable and trustworthy for business. Large efforts are also continuously made to bring the Maltese legislation in line with international standards and requirements, rendering it as one of the most progressive in matters of corporate and financial regulation.

Geographical strategic location

Malta lies right at the center of the Mediterranean Sea, exactly at the juncture between Europe, North Africa, and the Middle East; hence, it is a very perfect entry point into these markets.

Multilingual and Skilled Workforce

Malta enjoys high literacy and the fact that most of its people speak at least two languages, Maltese and English, which therefore facilitates easier communication and, in fact, doing business with Malta. This fact ensures an internationally friendly atmosphere for doing business and investment.

Attractive financial sector

A range of financial services is provided in Malta, and the financial market is very well-developed and diversified. The financial institutions in Malta are well-regulated and follow international standards that enable it to create a secure and trustworthy financial infrastructure.

The EU and the eurozone

Additionally, Malta is a member of the European Union and the euro area, so it allows access to the European single market and the option of doing business in euros with the same value. This will make trade and investment easier to operate within the EU with the least cost.

Setting up a company in Malta is a very attractive option for international entrepreneurs and companies seeking stability, favorable tax conditions, and access to the European and world markets. It is the combination of a favorable tax system, an excellent level of expertise in the workforce, a developed financial sector, and its strategic location that turns Malta into an appealing jurisdiction for international business development.

What ways does exist for setting up a company in Malta?

Setting up an organization in Malta gives the entrepreneur or business different avenues for conducting and expanding one’s operation in this highly attractive jurisdiction. Because of the flexible and progressive corporate framework of Maltese law, several variations of company setup are supported, each serving a different set of business objectives and strategies. The main ways of establishing a company in Malta are reviewed below in detail.

The form in which a company is set up in Malta will depend on the purposes and requirements of the business. Each type has its relative advantages and limitations, respectively, concerning the need for constituent documents, governance, and financial reporting requirements. Malta represents a very appealing jurisdiction to many kinds of businesses searching for international expansion, having in mind the flexible corporate legislation in place and the attractive tax system.

Do I need to have a registered office in Malta?

According to Maltese legislation, any company established and registered in Malta must have a registered address in Malta. The Registered Address is to be used for receipt and issuing purposes of all corporate notifications, legal correspondence, and government registration. In case registration occurs, a Registered Address will be required upon accessing the Maltese Company Register as part of the Malta Financial Services Agency (MFSA).

Legal address functions

How to Set a Legal Address

A company may establish a registered address in Malta either by leasing office space, using specific registered address services from specialized providers, or through law firms and consulting companies offering corporate services. Which option is better would depend on the specifics of the activity performed by the company, the size thereof, and requirements in terms of physical presence on the island.

In Malta, the registered office is not just a formality in keeping with the requirements for registering a company but an important feature in the assurance of legal and operational efficiency. It plays an important role regarding the management of corporate correspondence, observance of regulatory requirements, and business transparency. It constitutes one of the very early and important steps for the successful registration and operation of a business in Malta.

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

Setting up a branch of a foreign company is a popular avenue for international business intent on expanding both its presence and operations in the European Union. Under Maltese law, the opening of branches has been provided with relatively flexible conditions, making the island a very attractive jurisdiction for foreign companies. In the given article, we will discuss the main issues regarding opening and doing business with a branch of a foreign company in Malta: legal requirements, benefits, and registration process.

Legal requirements

Establishing a branch of a foreign company in Malta involves observance of some legal requirements and procedures as prescribed by the MFSA. To this end, a foreign company has to present the following documents in English or with a certified translation:

• A copy of the constituent documents and articles of association of the foreign company, where:
• 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 indicating 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

• Access to the European Market: Establishing a branch office in Malta allows foreign businesses access to the vast market of the European Union and avails them numerous agreements concerning trade under the European Union. The country has a very favorable tax regime, with possible income tax refunds that would attract foreign companies to locate there.
• Tax benefits: Malta offers a favorable tax system with the possibility of income tax refunds, which can be attractive for foreign companies.
• Reputation: Malta has a good business reputation, with a stable economy and a high level of financial and legal services.
• Flexibility in management: A branch has a certain extent of managerial independence although keeping in close contact with its parent company.

Registration process

• Preparation and submission of documents: First of all, one should prepare and collect the documents as well as the information that is to be sent to MFSA.
• Registration with the MFSA: The MFSA will undertake the branch registration procedure upon the receipt of all these documents.
• Opening a bank account: The branch has to open a bank account in Malta to carry out all its financial transactions.
• Registration for Taxes and Social Insurance: Registration needs to be done by the branch with all concerned tax and social insurance authorities in Malta.

Setting up a branch of a foreign company in Malta may be a strategic move for business expansion into the European market, while it also offers a number of tax and operational advantages. However, one should make sure that preparation for the registration process is done with care, that it is in line with the legal requirements of Malta, and that the documentation prepared is adequate. The right approach, along with an understanding of local laws and regulations, will help maximize the success and efficiency of the branch of a foreign company in Malta.

Can a foreigner open companies in Malta?

Opening of companies 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 opens up a series of opportunities to foreign investors in case they want to expand a business or establish a new one in the European Union jurisdiction. In this article, we will review some important issues referring to opening a company in Malta by foreigners and will pay attention to a set of advantages that Malta provides to foreign businesses.

Advantages of opening a company in Malta by foreigners

• Access to the European Union Market: Malta became a full member of the EU; thus, any company registered in Malta is given access to the EU single market.
• Favorable Tax System: Malta has one of the most attractive tax systems in the EU. It boasts an income tax refund system to shareholders that can significantly reduce the effective tax rate.
• Political and economic stability: Malta boasts a stable political regime with a growing economy.
• Highly qualified workforce: It enjoys an educated, multilingual population that is able to fulfill the demands of international business.
• Flexibility of Corporate Legislation: Malta provides diverse corporate structures fit for various business models.

Key steps for foreigners to open a company in Malta

• Company type selection: It may take the forms of a private limited liability company – Ltd., public company – Plc, partnership, or branch/representative office of foreign company.
• Preparation and submission of documents: For a company’s incorporation, the documents that follow shall be prepared. This includes the memorandum and statutes of association, directors, and secretary. All documents shall be filed with the Malta Register of Companies.
• Tax and social security registration: Upon incorporation, it must register with the Tax Service and the Malta Social Insurance Fund.
• Opening a bank account: For a company to do business in Malta, there is the need for the company to possess a Maltese bank account.

Foreign investor requirements

Though Malta actively promotes foreign investment, there are, nevertheless, some requirements and restrictions that include licensing for certain activities, anti-trust and fair competition regulations. Foreign investors must also conform to local legislation and regulations, such as labor legislation, occupational safety standards.

Setting up a company in Malta by foreigners provides a number of advantages, such as the European market, favorable tax conditions and a stable business environment. In accordance with Maltese legal requirements and procedures, a foreign entrepreneur will be able to successfully start and develop his business in Malta, using all the advantages of this jurisdiction.

May I apply for a residence permit upon setting up a company in Malta?

Incorporation of a company in Malta is not only a good decision for the development of your business but also a way to get a residence permit in this country. Malta has worked out different programs and opportunities for foreigners who would like to move to this island and combine business activities with living in a country with high living standards, stable economy, and attractive tax regime. In this article, we will try to get a glimpse into how setting up a company in Malta can widely open the doors for getting a residence permit and point out the most important aspects and requirements connected with it.

Ways of obtaining residence permit through establishment of a company

Investor program

Different investor programs may exist in Malta for which setting up a company is a requirement in order to get a residence permit. These programs are targeted at foreign entrepreneurs and investors who show readiness to contribute to the economy of the country. This may be the cases:

Self-employment

Other alternatives of residence permit receipt could be practised by foreign businessmen, including self-employment status, or otherwise said, creation and management of own business on the territory of Malta. For this purpose you will have to submit a certain business plan and confirm the financial stability of the project.

Requirements and procedure

Company establishment

It includes the incorporation of a company in Malta, such as the type of organization, preparation of the memorandum and articles of association, and filing with the responsible authority.

Proof of financial stability

You should be able to prove that you can support yourself and your family and simultaneously have sufficient funds to set up and run a business.

Application for residence permit

When the company is set up, you will be able to apply for your residence permit on a submittal of all the documents required, including proof of business activity and financial stability.

Advantages 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 enjoys a stable economy with low unemployment and ever-growing GDP.
• The attractive fiscal system: Malta offers great fiscal conditions for entrepreneurs and foreign residents alike.
• Access to the European Union markets: Being an EU state, Malta provides access to European Union markets.

Setting up a company in Malta can be a big step toward getting a residence permit in this country. Study all the requirements and conditions carefully that are attached to the chosen program or with the receipt of residence, and prepare accordingly. It’s a painful process, but all the advantages of living and doing business in Malta justify such an effort.

What does the charter of a company registered in Malta contain?

The Charter of a company registered in Malta is one of the main documents that define the legal basis of its activities, the structure of the management, rights and obligations of shareholders, as well as many other aspects related to the daily operations of the company. In Maltese corporate law, this document is usually accompanied by a memorandum of association, whereby these two documents make up a full package of a company’s foundation documents. This paper will dwell on what it usually contains in the charter of a company in Malta, based on general requirements and practices that could be recommended for an object of such kind.

Basic provisions of a Maltese company charter

The charter for a Malta-registered company plays a basic role in establishing the legal basis of operation, providing clarity and transparency to shareholders, directors, and other stakeholders. This would be a prime document for protecting rights and interests of all participants in business dealings and for service in the due observance of Maltese corporate norms and standards. The preparation of the charter is an elaborate legal planning that needs to be professional in order to exhibit the structure and operation of the company and thus to ensure its long-term success and development.

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

One of those processes that attracts entrepreneurs from around the world due to a transparent corporate environment, favorable tax system, and strategic location is the establishment of a company in Malta. Among the key considerations entrepreneurs look for in Malta is the speedy and efficient way of registering a company. The time needed to form a Malta company depends much on the type of company, the completeness and accuracy of the documents submitted, and the efficiency of local consultants and government services. In this article, we take a closer look at the main stages of the process of establishing a company in Malta and estimate how long each of them may take.

Steps to Form a Company in Malta

How long does the whole process take?

Generally speaking, the incorporation of a company in Malta takes from a few days up to several weeks. If the preparation and submission of documents and registration proceed without holdups, the company can be registered within one week. However, additional procedures like opening bank accounts and obtaining special licenses might extend the incorporation to several weeks.

The setting up of an enterprise in Malta may be significantly reduced in time if thorough planning is implemented at every stage of the process. In addition, with the help of top local consultants and legal entities, the process will be easier and registration will be both fast and smooth. Although registration takes some time, as far as procedures at law are concerned, Malta as a jurisdiction is open and transparent and the Maltese Government supports this.

What activities can companies do in Malta?

Companies that will be registered in Malta can have a lot of flexibility in the various activities they can deal with; it has become one of the most progressive business environments. Malta, being part of the European Union, brings an exposed market to companies in the European single market—a good place for various businesses. From financial services to the gaming industry, from tourism to high technology, Malta presents special possibilities for international entrepreneurs and businesses. We will look at the main areas of activity where companies can operate in Malta.

Financial services

Malta is generally known for its substantial financial services industry which encompasses activities in banking, insurance, asset management, and investment funds. The environment concerning the regulation of the country is very stable and secure. This in turn more than attracts considerable numbers of financial institutions as well as investment companies to the country.

Gambling business

Malta is today one of the world leaders in online gambling jurisdiction. It is one of the first regulated environments in the world for online casinos, sports betting, poker, and other types of gambling. This regulated environment guarantees openness and security for operators as well as players.

Technologies and Innovations

Malta is also developing the sphere of high-tech business: from information technology and blockchain to artificial intelligence. The country fosters startups and innovative projects with support for among others, specialized incubators and technology parks.

Tourism and hospitality

With its geographical location, history, and culture, Malta attracts millions of tourists from all over the world. Tourism and hospitality companies on the small island, represented by hotels, restaurants, travel agencies, and entertainment services are developing in significant numbers.

Shipping and aviation

Malta has one of the largest commercial fleet registers in Europe and offers very attractive conditions for the registration of ships and aircraft. In Malta, the shipping and aviation industries benefit from favorable tax incentives and a considerable degree of professionalism in the sphere of registration and management.

Research and development

The Government of Malta actively promotes investment in research and development in fields like health, energy, and sustainable development. Companies involved in research and development of new products get government support in various assistance forms as well as fiscal incentive benefits.

Online Business and E-commerce

Malta has such an enabling environment that the growth of e-commerce and Internet businesses, online commerce, marketing services, and digital services have all flourished. The presence of a well-developed IT infrastructure and cheap tax rates make Malta an attractive destination for online entrepreneurship.

Malta represents many opportunities for international companies looking to further 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.

Is it worth hiring workers for a Malta company?

The desire to have employees within a firm registered in Malta interests many foreign investors and entrepreneurs intending to start up or expand their business operations in this jurisdiction. While Maltese corporate and labor law makes certain requirements and standards relating to the hiring of employees, the actual obligations of a company to hire employees will depend on such factors as the nature of activity, the size of the company, and special business objectives. The following are some of the main points on the matter of company obligations in Malta with regard to employee recruitment.

Although companies registered in Malta are not obliged to employ personnel in order to conduct their activities, any decisions regarding employment should be undertaken in line with the company’s specific business needs, regulatory requirements, and strategic objectives. In addition, any decision relating to the employment of personnel should be very carefully considered in terms of the advantages and disadvantages involved, along with any possible alternatives, such as outsourcing or the use of contract services, particularly in the early stages of business development. In any event, regardless of what approach is taken, the companies need to be assured that they are substantially in compliance with Maltese labor and corporate laws.

How do I choose a company name in Malta?

Choosing a name for a company has to be selected in Malta it is one of the most crucial steps in setting up a company in Malta. This needs to be done cautiously and with strategic thinking. The name will not only create the first impression of your business but it also plays a huge role in its branding, marketing, and even legal protection. However, the name must conform to Maltese legislation and must be approved with the Register of Companies. The purpose of this article is to discuss the main aspects involved and recommendations for choosing a name when forming a company in Malta.

Checking for Uniqueness

Verification of uniqueness of name is the first step in choosing a name. Your company name must be different and not too similar to existing ones of companies registered in Malta. A check can be done online through verification services with the Malta Register of Companies. Uniqueness of name is not only valuable to avoid litigation problems, but also because your brand name should have an identity.

Compliance with the Law

The company name must comply with relevant Maltese laws and regulations. The name should not be such as to suggest that its objects are other than those contained in the Memorandum, nor should it contain any words or phrases prohibited unless appropriate permissions are obtained. This would normally entail, for example, that the use of any word suggesting State support, or even international activities, would usually require special approval.

Reflection Of The Field Of Activity

It is desirable that the name of the company corresponds to 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

The name should also be easily pronounceable and memorable; with that in place, word-of-mouth distribution of information regarding your brand will be easier as the people are not confused about the name. Always remember that the company name would be used in various situations and in other languages as well if you are planning to do an international business.

Something more to it – Flexibility and Scalability

When naming your business, look towards the future. Your business name should be adaptable and appropriate when you expand the scope of your activity or extend your geography. Don’t use a highly specialized title that might pigeonhole your business and limit expansion.

International Eligibility

If you’re going to do business anywhere other than Malta, make sure that your name does not have any bad connotations in other languages and is compatible with the cultural characteristics of your target audience. This would reduce misunderstandings and allow for successful branding internationally.

Naming a company in Malta might be considered one of the most burdensome processes that requires great care and strategic thinking. Some of the key considerations to bear in mind when choosing a name include uniqueness, legality, describing field of operation, easy pronunciation and remembering, flexibility, scalability, and international acceptability. Choosing an appropriate name will not only help in avoiding legal hurdles but also provide a boost for your business.

Business Register in Malta

The Business Register in Malta can be considered a central element of corporate governance and regulation for ensuring transparency and accountability within the island’s business community. This register is maintained by the Malta Financial Services Authority – MFSA, established to generally regulate all financial services in the island, whether banks, insurance companies, investment funds, or the corporate sector. This article will discuss in detail the functions and meaning of the Malta Business Register, together with the process and requirements for company registration.

Functions and meaning of the business register

In Malta, the business register has the following important functions:

• Registration of new companies: Business Register gives legal merit for the establishment of the firms in Malta; thus, ensuring legality and the right to conduct business in Maltese jurisdiction.
• Changes in corporate structure: It is mandatory for any company to report to the register any changes concerning its constituent documents, composition of directors, or share capital structure.
• Public access to information: This Business Register is a very important source of information for investors, partners, and regulators and adds more transparency and confidence in the Maltese business scenery.

Registration of Companies

Registration of a company in Malta begins with the choice of an appropriate company name and preparation of all relevant documents, such as a memorandum and statutes of the association. These are forwarded together with an application for registration and payment of relevant state fees to the MFSA Business Register. On verification of the documents and payment of the respective fees, the company will be considered as registered and will be given a certificate of registration.

Registration requirements

To successfully be able to register a company in Malta, you need to meet a number of requirements including:

• Uniqueness of the company name: this should not be identical or similar to other company names in the register.
• At least one shareholder and director: the Company shall have at least one shareholder-an individual or legal entity-and one director.
• Registered address in Malta: The company shall have an official registered address in Malta.
• Compliance with corporate and tax law: The Company shall abide by local corporate and tax laws, which would also include annual filing of reports and statements of accounting.

The Maltese Business Register stands at the heart of the country’s corporate life, giving a proper and sound structure both to the registration of companies and the regulation of their activities. Such a modest compliance with the requirements and procedures for registration contributes not only to the legality of conducting business on the island but also creates a better transparent and trusting business environment. Equally supported by the MFSA, Malta maintains its status as the port of call for entrepreneurs and companies worldwide who seek to leverage the benefits accruable from doing business in this jurisdiction, thanks to a well-organized registration process.