Company registration in Malta
Company registration in Malta

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. 

WHY MALTA?

WHY NOT?

 

  • Non-domiciled companies are exempt from corporate tax
  • No withholding tax on dividends, royalties, interests or technical services (some exemptions apply)
  • No payroll tax
  • No wealth or net worth tax
  • No inheritance tax
  • No property or estate transfer tax
  • No capital duty 
  • No foreign exchange control
  • No branch remittance tax
  • EU VAT registration simplifies EU trading
  • Double tax treaties with over 70 countries worldwide
  • English is the official language which allows for easy communication
  • Cryptocurrency friendly jurisdiction
  • A Maltese Investment Services License is transferable to any country in the EU without the need for any additional permits 

  • High corporate and personal income tax rate of up to 35% 
  • Public registry of company officials and the name of the beneficial owner must be disclosed to the Company Registry, however it is not accessible to the public
  • To receive an EU VAT number for a company its management and control must be Malta 
  • Strict substance requirements can significantly elevate operational costs and though the country offers many tax incentives, a Maltese tax-residency exposes the company to fall under its high corporate tax rate 
  • The VAT rate is 18%
  • Ranked negatively in the Corruption Perceptions Index by Transparency International and the Index for Economic Freedom by the Heritage Foundation
  • Due to limitations of its own natural resources, raw materials, industrial supplies and commodities are highly dependent on foreign import which can significantly impact profit margins and growth rates of non-service-related businesses such as manufacturing and construction
  • Contract enforcement can be very time taking and complex
  • Company Insolvency procedures can take years and have very low recovery rates

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

GENERAL

Free-Zone LLC

Private LLC

Public LLC

Incorporation Time

One week

One week

Two weeks

Local Representative Required

Yes

Νο

Νο

Local Registered Address Required

Yes

Yes

Yes

Migration of Domicile Permitted

Yes

Yes

Yes

SHARE CAPITAL

Minimum Share Capital

EUR €1,164.69

EUR €1,164.69

EUR 46,587.47

Minimum Paid Up

20%

20%

25%

Maximum Share Capital

No Maximum

No Maximum

No Maximum

Bearer Shares Allowed

No

No

No

SHAREHOLDERS

Minimum number

Two

Two

Two

Maximum number

Fifty

Fifty

No Maximum

Publicly accessible records

Yes

Yes

Yes

Corporate shareholder allowed

Yes

Yes

Yes

Annual General Meeting Required

Yes

Yes

Yes

DIRECTORS

Minimum Number

One

One or Two if corporate director is appointed

Two

Maximum Number

No Maximum

No Maximum

     No Maximum

Local required

No

No

No

Publicly accessible records

Yes

Yes

Yes

Corporate directorship allowed

Yes

Yes

Yes

COMPANY OFFICIALS

Secretary Required

Yes

Yes

Yes

Local Secretary Required

Yes

Yes

Yes

Other Officials Required

No

No

No

COMPANY ACCOUNTS

Requirement to Prepare

Yes

Yes

Yes

Requirements to File Accounts

Yes

Yes

Yes

Audit Required

No

Yes

Yes

OTHER ANNUAL REQUIREMENTS

Annual Government Renewal Fee

EUR 270

From EUR 100 – 1,400 depending on the size of the share capital 

From EUR 400 – 1,400 depending on the size of the share capital

Annual Return

Yes

Yes

Yes

Tax Return

No

Yes

Yes


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.  

Company registration in 3 easy steps
  • 1 Choose your package
  • 2Submit documents
  • 3Get registration documents
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