Malta Company Set Up
Setting up a company in Malta is a relatively fast, simple and direct process for business owners, entrepreneurs and investors. From your company registration to sourcing your company office, we have provided a step-by-step process for your Malta company formation.
Have you ever considered why Malta could be the best location to set up your business? Six years ago, considerable changes were made to improve the possibilities of setting up a business in Malta. The Registrar of Companies and the Inland Revenue Department created an online link for the issuance of a tax number. Overall, the benefits Malta has to offer, make it a great jurisdiction to open up shop; competitive tax rates, Mediterranean climate, part of the European Union, friendly locals, English language, Euro currency, double tax treaty agreements, reasonable rent and wages, and more. Additionally, Malta does not have any restrictions on the importation of foreign goods (although imports from non-EU countries will be subject to import duties and VAT).
Legal Basis
Maltese companies are regulated by the Companies Act, which was enacted in 1995 and originally based on the structure of the UK Companies Act.
Key Facts
Quick and straightforward procedure
Personal presence is not required
Full company formation Malta process included
The minimum authorized share capital is EUR 1,165.
Benefits of setting up a company in Malta
Workforce
A talented workforce, with good education, knowledge of multiple languages, in a diversified economy with strong tech and financial sectors.
Double Taxation Treaties signed
Take advantage of several double tax treaty agreements that Malta has set in place.
Currency & Language
The island of Malta has its own national language: Maltese. However, Malta has two official languages; English and Maltese. The currency of Malta is the Euro.
Low Company Formation Costs
Low costs to set up your company in Malta, with the benefit of a full tax refund for a Malta-based company holding shares in another non-resident Company.
Corporate Tax Rates
An effective corporate tax rate of 5% is applicable for non-resident (foreign-owned) trading companies that are registered in the Maltese islands.
Non-resident Capital Gains Tax
Non-residents deriving capital gains tax on share transfers and increases of share capital will not be subjected to pay tax in Malta if company assets do not include immovable property in Malta.
How Citizen Lane will Support your Company Set-Up
Setting up a business in Malta is a relatively straightforward procedure, that can be completed within a week if all the information, documents, funds and due diligence we need are provided. Citizen Lane assists clients looking to set up a company in Malta by developing their idea and by offering a variety of services to holistically support with setting up a company in Malta including any back-office, compliance, corporate, and tax advisory services required for your company to succeed.
Opening a company in Malta is not a strenuous process, however, guidance and assistance can help greatly when working with foreign entrepreneurs. Just some of the services we can help with include:
preparing all the documentation related to registering the company, including notarization of the foreign owners’ identification papers;
assistance with communicating with the Maltese Companies Registrar during the whole company incorporation procedure;
assistance with the tax authorities for Malta company registration for tax, social security, insurance, and pension;
guidance with applying for business permits required before starting the business’ activities.
Types of Companies in Malta
Foreign entrepreneurs have several choices to make when choosing to set up a business in Malta. The company structures that can be incorporated according to The Maltese Commercial Code include:
Private Limited Liability companies
Public Limited Liability companies
General Partnerships
Limited Partnerships
Sole Proprietorships
Moreover, non-local companies also have various options involving the inclusion of company subsidiaries, branches and liaison offices in Malta.
Malta Business Set-Up Process
Incorporating your business should be a quick and easy procedure, and we ensure that with our experience we can make any complexities as simple as possible. Citizen Lane offers a full range of services for the company formation in Malta; from the beginning stages of a company set up and to register your company to sourcing your office space and opening a Maltese bank account, we will assist you with every step of the way. We make sure to provide a high-quality service that will holistically and successfully support your business set up.
To avail of the most advantageous tax treatment, it is usually advisable that two (2) companies be incorporated in Malta, adding a holding company which will act as the shareholder of the trading company. Even though individualized, holistic tax advice should be obtained to identify the most suitable corporate structure, the structure typically recommended can be represented as follows:
Ultimate Beneficial Owner(s)
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Maltese Holding Company
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Maltese Operating Company
The setup process, including opening a bank account usually takes less than a week. The final company registration in Malta takes about two to four weeks, depending on payment of share capital, and processing times of the Maltese authorities. The client does not have to be present for the Malta company set up, as we can act with a power of attorney in the name of the client.
These are the main steps to follow for your business set up in Malta:
Reserve/Register a company trade name with the Maltese Commercial Register (online).
Draft and notarize the company’s memorandum and articles of association.
Transfer the minimum deposit for share capital with the chosen bank: (Private company: the minimum share capital is €1,165, of which a minimum of 20% has to be paid up. In the case of public companies, the minimum share capital is €44,588, of which at least 25% has to be paid. Accordingly, the relevant amount will need to be deposited into a bank account under the name of the new company. Subsequently, the deposit slip needs to be presented to the Registry of Companies as proof of the deposit of capital at the incorporation stage).
Apply with the Malta Trade Register and Register a company in Malta: The documents to be filed are:
The Memorandum and Articles of Association (M&A)
A confirmation of the company name reservation
Proof that initial share capital has been deposited (in the case of an LLC)
Proof of identification for the subscribers (passport copies of the shareholders, directors and company secretary)
After the documents are submitted to the Registry of Companies, your registration will be completed within 24 hours (please note that registration fees are required in certain cases). You can partially complete the company registration online, however, you or Citizen Lane (with power of attorney) will need to be physically present to sign off on certain documents.
VAT and Tax registration: Once you are done with registering a business in Malta, you must obtain a business license, and register your company for VAT and with the Employment Training Corporation. Applying for a VAT number, tax, and/or employer number can be done online.
FAQs
Does my company need a registered office in Malta?
Yes, every Maltese business must have a registered company office in Malta. Citizen Lane will assist you by providing an office address and/or sourcing an office space for your company.
How much does it typically cost to incorporate a company in Malta?
Typically, a company needs at least €1,165 as initial share capital, along with registration fees with MFSA of €245. Professional fees to set up a standard limited liability company would be in the region of €2,000 and would include the registration with Inland Revenue, VAT Department and to act as an employer (if required).
Does my company in Malta need a secretary?
Yes, all companies need to appoint a legally-required, local company secretary, who is not the sole director of the company unless it is constituted as a private exempt company. Citizen Lane will assist with appointing your company’s company secretary and also provide you with bookkeeping services through our reliable partner in Malta.
How do I register VAT for my company in Malta?
Any company registered in Malta is required to register for VAT within the first thirty days of offering their services/products. Citizen Lane can apply for a Maltese VAT number on your behalf if you are not able to apply in person.
Do I need to open a Maltese bank account?
No, opening a Maltese company bank account is not necessary, however, we advise you to do so for any local transactions.
Can I employ foreign staff in Malta?
Yes, hiring foreign staff is possible as long as they have a work permit and are subject to local taxes and contributions.
How many directors and shareholders does my company need?
If setting up a private company, you need a minimum of one director and one shareholder (a maximum of fifty). In the case of setting up a public company, you will need a minimum of two directors and two shareholders (no maximum number).
Am I able to get a residence permit in Malta?
Malta actively attracts highly qualified and wealthy foreign residents and offers different options to get a beneficial permanent residence permit or Maltese citizenship and passport. Non-EU citizens can receive a temporary residence permit that can lead to a permanent residence permit after several years. Visit our Malta page for more information.
Our Guidance & Assistance
Through our dedicated experience in the field and building our dependable network over the years, we are confident in our abilities to successfully guide and support you through Citizenship and Residency programs.
Citizen Lane respects every client’s unique situation and will be able to discuss details in confidence. We will provide you with comprehensive advice and find the appropriate solution for you and/or your family. Visit us at our offices located in Malta, Austria, Germany, and Switzerland, or contact us by phone/email/contact form. Our team is ready to arrange a WhatsApp, Skype, or Zoom call with you.