Would you like to set up a liaison office in Malta and need guidance? This article is meant to help you and also direct you to our online services provided by our Maltese agents with experience in company formation.
| Quick Facts | |
|---|---|
| Definition of the liaison office | A liaison office in Malta is a representative office established by a foreign company to facilitate communication and business activities in the country. |
Communication and coordination | The primary purpose of a liaison office is to facilitate communication and coordination between the foreign company and its clients or partners in Malta. |
Market research and analysis | Liaison offices in Malta often conduct market research and analysis to gather information about the local business environment and market opportunities. |
| Promoting business interests | Liaison offices play a role in promoting the business interests of the foreign company in Malta. |
| Legal entity status | A liaison office does not have a separate legal entity status in Malta and operates as an extension of the foreign company. |
| Limited scope of activities | Liaison offices are limited to activities such as market research, information sharing, and coordinating business activities. |
| No profit repatriation | Liaison offices cannot generate profits or conduct business transactions, so profit repatriation is not applicable. |
| Work permits and visas | Employees of a liaison office may require work permits and visas to work and reside in Malta, subject to immigration regulations. |
| Restricted duration | The duration of a liaison office's existence is typically limited and subject to renewal based on the foreign company's needs. |
| Local representation | A liaison office may appoint local representatives who act as a point of contact and provide support in Malta. |
| No contracts or agreements | Liaison offices cannot enter into contracts or agreements on behalf of the foreign company. |
| Cost-effective market entry | Establishing a liaison office in Malta can be a cost-effective option for foreign companies looking to explore the market before committing to a permanent establishment. |
| Limited liability | The liability of a liaison office is limited to the foreign company it represents; it does not have separate legal liability in Malta. |
| No trading or commercial transactions | Liaison offices are prohibited from engaging in trading or commercial transactions, including buying or selling goods or services. |
| Conversion to branch or subsidiary | If a foreign company decides to expand its operations in Malta, it can convert the liaison office into a branch or subsidiary for more extensive business activities. |
Table of Contents
How is a liaison office known in Malta?
Representative office (RO) in Malta.
Who can set up liaison offices in Malta?
Any foreign entrepreneur who wants to learn about the business market in Malta can open a liaison office and conduct all sorts of marketing activities.
Can a liaison office have financial operations?
No, liaison offices in Malta do not have retail activities and therefore no financial operations. This is an office that connects potential clients in Malta to foreign companies.
Can a liaison office develop commercial activities in Malta?
No, a representative office in Malta cannot conduct commercial activities but can contact potential business clients.
The video below shows the main steps for opening a Maltese representative office:
What are the conditions to open a representative office in Malta?
- have a business address in Malta and a representative officer,
- the incorporation must be done with the Malta Business Registry – MBR,
- Form M should be completed with information about the liaison office in Malta,
- the Articles of Association of the parent company must be prepared & submitted, alongside a board resolution,
NOTES:
- the representative officer should have residency in Malta,
- virtual offices are also accepted when opening a liaison office in Malta,
- tax registration is also required for a representative office in Malta.
- the application fee is around EUR 215–EUR 245 and is paid to the MBR when setting up a liaison office in Malta.
Can a representative office sell goods & products in Malta?
No.
Is a liaison office in Malta subject to taxation?
No, liaison offices in Malta do not pay taxes in Malta.
Can a liaison office representative sign business contracts in Malta?
Liaison offices in Malta cannot sign business contracts.
What is the time frame to open a liaison office in Malta?
About 2-4 weeks.
What are the key advantages of a liaison office in Malta?
- no minimum share capital required,
- possibility to explore the market before sealing business partnerships,
- can develop a wide range of market research before making investments,
- fast and simple incorporation, etc.
Are there any precautions when opening a representative office in Malta?
Beneficial ownership transparency is mandatory in Malta, alongside Anti-Money Laundering compliance.
Who supports the expenses of a liaison office in Malta?
The foreign company.
Are you ready to start your activities through a liaison office in Malta? Would you also like to know about the existing business entities in this country? You can explore the services provided by our agents for setting up a company in Malta. Contact us today and benefit from our tailored offers.