We are a team of company incorporation specialists in Malta who offer a wide range of services for local and foreign investors interested in starting a business in this country.
| Quick Facts | |
|---|---|
| Types of companies which can be started by foreigners | Limited liability company Public company |
| Minimum share capital for LTD Company and paid-in requirement | 1200 shares of €1 each – 20% paid up – ie : €240 |
| Minimum number of shareholders for Limited Company | 1 |
| Time frame for the incorporation (approx.) | 1-2 weeks |
| Corporate tax rate | 35% – but refund of 30% to shareholders – net effective tax of 5% |
| Dividend tax rate | – |
| VAT rate | 18% |
| Are shelf companies available? | No |
| Do you supply a registered address? | Yes |
| Local director required | No |
| Annual meeting required | No |
| Redomiciliation permitted | Yes |
| Electronic signature | Yes, but not in all instances |
| Is accounting/annual return required? | Yes |
| Foreign-ownership allowed | Yes, no min. or max. requirement |
| Any tax exemptions available? | – net effective tax of 5% – no dividend income tax – no stamp duty upon transfer of shares – no capital gains and no transfer pricing regulations |
| Tax incentives | Upon repatriation of dividends may be able to get up to 35% tax credit in country of residence |
What types of companies can I register in Malta?
The main types of entities available for company formation in Malta are:
- limited liability companies,
- limited partnerships,
- general partnerships.
Each form of business is subject to certain company formation conditions for which our team of company incorporation specialists in Malta can offer complete assistance.
How can I register a private LLC in Malta?
The private limited liability company is the most employed type of business vehicle in Malta. According to the Maltese Company Act, a private limited liability company must have a minimum share capital of EUR 1,165. However, if the share capital does not exceed the minimum requirements, it must be fully subscribed upon incorporation. If it is over the minimum amount, at least 20% must be deposited at the company registration. The private company is also required to have at least two shareholders, one director, one company secretary, and a registered office. The legislation does not require the company’s directors to be Maltese residents.
How can I incorporate a public LLC in Malta?
Limited liability companies may also be registered as public companies. This type of company is required to have at least two shareholders who will subscribe a minimum share capital of approximately EUR 46,600 of which at least 25% must be paid upon the incorporation of the Maltese company. Compared to the private company, the public company must have at least two directors and may trade its shares on the Maltese Stock Exchange.
The limited liability company can be an excellent option for starting a business in Malta. The formalities are straightforward and our agents can help you start a small business regardless of the chosen industry. Here is what you need to know about starting a small business in Malta:
- The limited liability company can be registered with a minimum share capital of EUR 1,165 deposited in a local bank account.
- At least two shareholders, a company secretary, and a manager are required for a limited liability company in Malta.
- The Articles of Association are the main documents of a company in Malta.
- If special licenses and permits are required, our agents can help you.
- The registration for taxation and social contributions is needed.
- If the company seal is issued, the business can have activities in Malta.
Besides opening a limited liability company in Malta, a sole trader can also be a great option. You might consider this simple business form in Malta and discuss it with one of our specialists in company formation in Malta. In any case, the incorporation of a company in Malta is a simple process, regardless of the chosen business structure.
Steps in opening a small business in Malta
As mentioned earlier, starting a small business in Malta is not a complex process, but it requires attention from the start. Our company formation agents can help international investors register a company in Malta in a fast and efficient manner, following a few important steps:
- The business name needs to be verified with the Maltese Companies Register.
- The documents of the company must be prepared, with information about the business owners, activities, business office, etc.
- The minimum share capital needs to be deposited in a local bank account.
- Besides the registration for taxation, the social contributions need attention too.
- If you decide on hiring staff, you can choose from the Maltese workforce.
- The investor must apply for business licenses and permits.
- Instead of a whole accounting department, you can hire the services of our specialists.
- If the company seal is obtained, the small business is ready for activities in Malta.
If you are interested in starting a small business in Malta, feel free to discuss all the aspects with one of our specialists.
Taxes for LLCs in Malta
The tax structure for limited liability companies in Malta is appealing to most of the investors from abroad. The corporate tax is set at 35%, but it can be reduced to 5% if an offshore company is created, for example, in Cyprus and it owns shares in an LLC in Malta. One should know that there is no tax imposed for dividends, no licenses fees, and no withholding tax on royalties. The standard VAT is set at 18% and it is applicable to companies in the trading sector in the EU. We invite you to address your inquiries about the taxes for limited liability companies to our team of consultants.
The advantages of LLCs in Malta
A Maltese limited liability company has several benefits: a fast incorporation, a low corporate tax imposed, an unlimited number of shareholders for public LLCs and an advantageous minimum share capital. Foreign entrepreneurs looking to open a limited liability company in Malta can have complete ownership in their firms, complete confidentiality, and an easy registration procedure with the Maltese authorities. We remind that the LLCs in Malta can be registered by at least one stockholder and managed by a board of directors. Being a cost-efficient business structure in Malta, a limited liability company is the preferred entity for establishing most of the activities in this country.
If you are interested in starting a business in another country, such as opening a company in Austria, our agents can put you in touch with our local partners. The can also help you with company incorporation in Dubai, if you need to do business in the Middle East.
How much does it take to register an LLC in Malta in 2024?
Limited liability companies in Malta can be registered fast, in about two weeks, as soon as the Trade Register accepts the Articles of Association, the main documents of the company. It is good to know that the next step, after the incorporation certificate is obtained, is to register the company as a taxpayer and apply for the company’s seal. Registering an LLC in Malta in 2024 is not complicated, yet our agents can tell you more in this sense.
Foreign investors can decide to open companies in other countries too, such as Canada, where the time frame for the incorporation of a company is just one day after they submit all the necessary documents at the local Trade Register. They can obtain an entrepreneur startup visa and permanent residency in this country. They can also enroll for the Immigrant Investor Venture Capital Scheme, if they can make a significant investment of minimum CAD$ 2 million for a period of 15 years.
Documents for company formation in Malta
The most important documents for company incorporation in Malta are the memorandum and the articles of association. These must contain:
- the type of company and the name and residence of each shareholder;
- the name of the company and the registered office in Malta;
- the objects of activity and the minimum share capital (plus the contribution for each member);
- the name of the registered agent and the board of managers;
- the name and residence of the company secretary for your firm in Malta.
Copies of the passport or other identification papers of the directors and secretaries must also be submitted with the Maltese Trade Register. Foreign citizens are not required to come to Malta for the incorporation procedure. They can appoint a representative agent and give him/her the power of attorney for legal representation.
Branches in Malta
Foreign companies may also set up branch offices in Malta, while for individuals looking for a simpler way of doing business in the country, the sole proprietorship is the proper option. Our experts in company formation in Malta can help you choose the right type of company.
Costs for forming a company in Malta
Foreign investors interested in company incorporation in Malta should consider the approximate costs for starting a business in this country. Here are a few details presented by our firm:
- Registration fee: the standard registration fee is set at EUR 375, but it might vary depending on the chosen city for business.
- Minimum share capital: EUR 1,165 is necessary for opening a private limited liability company and EUR 46,600 for a public LLC.
- Virtual office cost: approximately EUR 125 per month for a virtual office package.
- Company formation fee: approximately EUR 1,350, but a tailored offer can be provided by our team.
- Accounting costs for your company: from EUR 50/month (for a package that contains bookkeeping services, tax advice and many more).
Are there other requirements for company formation in Malta?
Once the registration procedure is concluded, the company must also apply for a business license and other necessary permits depending on the activity to be carried out. The company must also apply for a tax identification number (TIN) and register for VAT. The last step is to obtain an employer identification number (PE number) and register its employees with the Employment Training Corporation (ETC). If you need tax advice in Switzerland, we can put you in contact with our partners, a team of experienced tax advisors in Zürich.
How can I register an offshore company in Malta?
Maltese Private LLC is the most popular structure to have an offshore company in this country. The advantages of the reduced taxes are among the first taken into account by international investors who choose Maltese offshore company formation. Here is what the registration of such a company entails and what conditions must be observed:
- Single-member ownership is allowed for this structure, according to Maltese laws.
- A registered office in Malta is required to set up this company.
- You can appoint a local or foreign manager for Maltese offshore company formation.
- A company secretary is needed for this business structure.
- Memorandum and Articles of Association are important documents for the establishment of an offshore company in Malta.
- Each shareholder must provide personal information, have a valid passport and pay the fees imposed for Maltese offshore company formation.
Offshore companies operate in areas such as: e-commerce, maritime, online gambling, international trading, or for holding intellectual property rights. These are just a few examples of sectors in which you can set up a Maltese offshore company, but for more details, you can contact our specialists. We are here to provide help and assistance to foreign investors interested in business in Malta.
The tax system in Malta is advantageous for international entrepreneurs. The “full imputation” taxation system involves the profits of companies, which are taxed at the standard rate of 35%. There are also special cases, for example when it comes to dividends distributed to individuals from taxed profits. In this situation, an imputation credit is applied on the tax that has already been paid by the company, which determines a final tax of 5% or even 0% under certain conditions. Thus, there is no double taxation.
Malta continues to be a tax haven, and this is evidenced by several tax exemptions such as: no wealth tax, no withholding tax on dividends, no inheritance tax, and even no annual property tax. Therefore, the offshore structure is often used by foreign investors in Malta. Please note that more information about Maltese company formation fees and taxes can be provided by our local agents.
Can I receive management services for my company in Malta?
Yes, foreign investors with companies in Malta can receive secretarial services, trust services, and nominee shareholders on request. Our Maltese company formation representatives can handle the management services and can cater to your needs as a foreign business investor in this state.
We also invite you to contact our team of company formation consultants in Malta for in-depth information and assistance about the services we can provide.