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Forming a New Company in Malta | Endevio

Written by Endevio | Jul 6, 2021 8:16:11 AM

Malta’s ties and double taxation treaties with countries in and out of the European Union add attraction to investments. Commit to starting your business in one of Europe’s most dynamic economies. 

Malta has been ranked among the most prosperous countries in the European Union and identified as an advanced economy by the International Monetary Funds, and the World Bank. Starting a company in Malta has many advantages.

Malta’s tax regime 

Primary among these advantages is the favorable tax regime that adapts a system of refunds to foreign shareholders depending on the Company’s source of income.  

A company set up in Malta is usually subject to corporate tax at a flat rate of 35%. Still, the tax refunds system provides 5/7ths, 6/7ths, or 7/7ths back to the shareholders. 

By way of example, applying for the 6/7ths refund on the 35% described above would effectively result in a tax to the foreign shareholders of only 5%. 

There are also full tax exemptions for holding companies in Malta, and no withholding taxes or stamp duties in profit repatriation.  

Low company formation and maintenance costs 

When considering the low company formation and maintenance costs, foreign investors have many other reasons to start a company in Malta. Because of the country’s strategic location. Also, the skilled and multilingual workforce, taxation system, tourism, and developed financial and IT industries make up the strong economy. 

Incentives 

Knowing the importance of foreign investment for economic growth, the Government has designed various programs and schemes which provide tax deductions for foreign entrepreneurs from multiple industries. Some of these incentives help setting up different types of companies in Malta conveniently and effortlessly.  

Registering a Company in Malta

Foreign investors starting a business in Malta have to consider the share capital to invest in the Company. The Commercial Code only requires private and public companies to deposit a specific amount of funds.  

Setting up a company in Malta follows a straightforward process and is possibly done without the need to travel to Malta. To proceed with such registration, one must follow a process.   

  1. Choose the proper business structure for your operations in Malta. 
  2. Select the unique name for your Company to reserve with the Maltese Commercial Register. 
  3. Decide on the amount of share capital for the Company. The minimum share capital in Malta is €1,200, of which you must pay up 20%.   
  4. Complete the Company Registration Form provided by our Corporate Team of Experts. 
  5. Provide all the necessary due diligence documentation and forward it to our Compliance team for review and approval.   
  6. Draft and register the memorandum and articles of association for the Company in Malta  
  7. Once we receive all signed documents via courier, we will immediately submit them to the authorities. Within a few days, your Company will be registered in Malta. 
  8. Should the Company be a trading company, register for VAT as soon as the Company receives the Company Incorporation Certificate in Malta by the Registry of Companies. 

To better understand how company incorporation in Malta occurs, you can speak to our specialized team in Malta.