Company Formation in Malta
Malta, officially known as the Republic of Malta, is a Southern European island country consisting of an archipelago in the Mediterranean Sea. Malta is one of the world’s smallest and most densely populated countries, at over 316 km2 (122 sq mi) with a population of just under 450,000. Its capital is Valletta, which is the smallest national capital in the European Union by area at 0.8 km.
As a former British Colony, with official languages Maltese and English, with Maltese also recognized as the national language, Malta has a unique combination of a multi-lingual workforce and a strong legal system.
Incorporation a company in Malta provides an effective, EU-based solution. Malta’s competitive tax system, extensive network of Double Taxation Agreements, and its English-speaking educated workforce make it an increasingly popular business vehicle for companies from all over the world to register a company in Malta. Whether one is in need for a Malta holding Company (to be used as part of an effective asset-holding structure), a Malta trading Company, a ship-owning Company, an investment vehicle or a captive insurance company, Malta provides several solutions to accommodate such requirements.
Malta Limited Companies are not considered as offshore companies as there is no offshore legislation in Malta.
Malta is currently signatory to almost 70 Double Tax Treaties and some interesting opportunities exist when putting into place the appropriate corporate structure. Corporate tax in Malta is calculated at a flat-rate of 35% on the gross profits based on the audited financial statements of the company. However, through the availability of a tax refund system granted to shareholders of Malta-registered companies, the overall net effective tax rate could be reduced to 0% in the case of holding company structures, and 5% in the case of trading companies. In either case, there are specific legal requirements that must be satisfied in order for shareholders to benefit from such tax refunds.
Advantages of company incorporation in Malta:
Summary of Malta Limited Company and main characteristics:
| General Information | |
|---|---|
| Type of company | Private Company Limited by shares |
| Corporate Legislation | Malta companies are regulated under the Malta Companies Act 1995. The Maltese Registry of Companies, and the Malta Financial Services Authority are the governing authorities. Legal system: Common Law |
| Taxation | Effective corporate tax rate is 5%, Standard Corporation Tax – 35% Tax on Dividends for foreigners – 0% Standard VAT rate – 18% |
| Currency | Standard Currency EUR€. Commonly used currency of shares capital EUR€. |
| Paid up capital requirement | 20% of EUR 1,200 paid up capital requirement. Effectively a EUR 240 deposit in a CIF account. |
| Time zone | GMT (UTC) +1 |
| Directors | |
| Minimum no. required | 1 |
| Local Director required | No, but in order to obtain the resident status of the company tax resident in Malta – Yes (can provided by Consil Formation) |
| Location of Meetings | Anywhere. However, for place of effective control & management, board meetings may be held in Malta. |
| Shareholders | |
| Minimum no. required | 1 |
| Location of Meetings | Anywhere. However, for place of effective control & management, board meetings may be held in Malta. |
| Company Secretary | |
| Required | Yes (can provided by Consil Formation) |
| Local Secretary required | No, but in order to obtain the resident status of the company tax resident in Malta – Yes (can provided by Consil Formation) |
| Registered office required | Yes, local (can provided by Consil Formation) |
| Share Capital | |
| Standard Currency | EUR€ |
| Standard Authorized Capital | 1200 EUR€ |
| Minimum paid up capital | 20% |
| Accounting Requirements | |
| Preparation of accounts | Required (can be completed by Consil Formation) |
| Requirement for audit | Yes |
| Accounts public accessible | Yes |
| Requirement to file Annual Return | Yes (can be completed by Consil Formation) |
| Further Information | |
| Bearer shares | No |
| Confidentiality | Yes |
| Nominee services | Available |
| Need to travel | No |
| Apostille | Yes, Hague Convention 1961 |
| Owners | Individuals or Corporate |
Register your Malta Limited Company
- Document Notarization per document: € 500
- Bundle of documents Notarization;
- Document Apostillation per document;
- Bundle of documents Apostillation.