Malta’s strategic location and rich history has allowed it to develop and fame itself as a multicultural and diverse commercial center.   Its flexible regulatory framework, attractive tax incentives backed by outstanding services and facilities have made it one of the leading jurisdictions for the corporate, ICT, iGaming, Blockchain and Yachting industries in the European Union.  It prides itself as having one of the largest ship registries in the world, a highly advanced telecommunication system, a well-developed banking sector and a politically and economically stable environment with a low crime rate and highly developed infrastructure.  To further attract foreign investment, the Maltese government offers a number of attractive programmes for tax-residency, residential permits and citizenship by investment.  Malta is also currently in the process of enacting three new legislations empowering cryptocurrency and blockchain based businesses: The Malta Digital Innovation Authority Bill, the Virtual Financial Assets Bill and the Technology Arrangements and Services Bill - all aimed to provide security, transparency and trust through development, regulation and licensing of the fast-growing sector. 

Whether it is the low startup and operational costs, efficient tax system, or well-regulated but flexible regulatory framework, Malta creates a very favorable environment for companies.  Though there are no restrictions to the type of entities that can be formed in Malta, investors usually prefer to register a Maltese Limited Liability Company whether it be private or public due to its flexibility to be adopted to many business models and especially because of the country’s particular tax incentives given for holding and investment structures.  Furthermore, Maltese public limited liability companies can extend share issuance for public offering and are allowed to list on the Maltese Borza, as well as several EU stock exchange platforms.   Malta also offers entrepreneurs the opportunity to set up a free-zone company in the Maltese Free Port.  These companies benefit from reduced income tax and VAT and are eligible for investment tax credits making them an excellent solution for logistics, manufacturing and trade related businesses.  

However, regardless of the entity type it is important to take into careful consideration the tax residency of the company.  Should you wish to base your business in Malta, we highly advise you to read our article on physical presence in Malta or contact our corporate team for a more detailed review of the jurisdiction as well as an individually drafted solution for your particular corporate structure.  Our qualified team will help guide you through the entire process of company set-up or restructuring and can prepare a comprehensive tax opinion that will inform, advise and warn you of any possible liabilities and tax or legal implications.  

Corporate Features of a Maltese Free-Zone, Private and Public Limited Liability Company

For additional information, please feel free to contact our corporate consultants. Our highly professional team can provide full guidance relating to the set up of your business, assist with bank account opening, compliance, accounting and audit as well as handle the administration and management of your company.