Skip to content Skip to footer
Close
Company Formation in Malta

Company Formation in Malta

The Republic of Malta is a strategic geographical location, ideally placed to approach both the European and North African markets. As a member of the EU and the Commonwealth, Malta provides peace of mind thanks to a strong legal system and a well-established economic environment, highly credited for its growing strength in financial services. Malta boasts of a stable economy and a sound political climate. The country has a favourable double taxation treaty network with over 70 countries in the world.

ADDITIONAL INFORMATION

Malta offers a fast and efficient incorporation service. The fundamental requirements for incorporating a company in Malta are:
  • client due diligence procedures;
  • company name reservation;
  • drafting and execution of the memorandum and articles of association;
  • appointment of one (or more) individual and/or corporate director;
  • appointment of company secretary;
  • deposit of the initial share capital provided and paid for by the shareholders;
  • registration of the incorporation documents with the Malta Business Registry.
The process of incorporation of the company is usually finalised within 2 weeks from:
  • approval of the corporate documentation by the subscribers;
  • receipt of all the due diligence documentation requested and approved by Signature Private Office;
  • receipt of the initial share capital of the company; and
  • payment of the relevant fees and disbursements.
The Malta Business Registry is responsible for registering companies in Malta in accordance with the provisions of the Maltese Companies Act, 1995. A company is validly constituted through the drafting and registration of the Memorandum and Articles of Association and a certificate of registration that is issued by the Malta Business Registry.
According to the Maltese income tax legislation, Maltese companies are subject to corporate tax at the rate of 35% on their worldwide income and capital gains. When companies are taxed at the standard rate of 35%, following the distribution of dividends, shareholders are entitled to a refund of part or of all the tax paid by the company. The purpose of this imputation system is to eliminate any double taxation that might arise on the distribution of such dividends. Thus, company profits will only be subject to tax at corporate level. Malta offers tax refunds on distributed profits which have suffered tax in Malta. Non-resident shareholders or a holding company wholly owned by non-residents is entitled to qualify for a tax refund. The tax refund rates are:
  • 6/7 of the total tax paid on the distributed profits (equivalent to 5%);
  • 5/7 of the total tax paid on the dividends out of profits derived from passive interest or royalties (equivalent to 10%);
  • 2/3 of the total tax paid on the dividend derived from foreign sourced income that was relieved from any one of the four forms of double taxation available under Maltese tax legislation (equivalent to 6.25%).
The Maltese government’s tax system does not tax interest, royalties or dividends. The numerous double taxation agreements that Malta has in place with various jurisdictions around the world offer fiscal relief to investors and shareholders. Malta is compliant with all EU regulations and directives and with the OECD requirements.

The Companies Act requires that a private limited liability company registered in Malta must have a minimum Authorised Share Capital of €1200. The minimum Issued Share Capital is 20% of the Authorised Share Capital, that is €240. The class of shares can be registered shares, preference shares, redeemable shares and shares with or without voting rights.

A company registered in Malta must have at least one shareholder. Shareholders may be either corporate, a Maltese resident, or a foreigner. A foreign corporate or individual shareholder is also permitted. There are no restrictions with respect to the nationality or the domicile of the shareholders.

The registered office of the company must be in Malta. This is the official address of the company and where all the company’s official statutory documents and registers are kept.

The company must have at least one director. The director can be either a body corporate or a person. The appointment of a foreign director is permitted. Although there is no requirement that the director(s) are local, we advise that you appoint at least one Maltese individual or corporate entity in order to have effective management and control in Malta so that your company is considered to have substance.
A company registered in Malta must appoint a company secretary. The role of company secretary is a statutory one which must be performed by a competent individual to ensure full compliance with the authorities.