What You Need to Know About Company
Formation in Malta
Our team of worldwide partners at FormationWise provides a range of professional services dedicated to the process of company formation in Malta.
Why FormationWise
There are many benefits that you can enjoy by forming a company in Malta. Our team of worldwide partners at FormationWise provides a range of professional services dedicated to the process of company formation in Malta. We have a proven track record that has helped us to build a trusted reputation with the investors and entrepreneurs that we serve. When you work with us to submit your company formation in Malta application, we assist you in key areas that include tax planning, bank account support, accounting and directorship matters.
What is the process
The process of registration for public and private offshore companies in Malta is one that is relatively quick and easy. In many cases, you could receive your company incorporation certificate from the registrar in Malta within a week if everything regarding your application is in order. When you work with FormationWise, we make sure that your application for offshore company formation in Malta is successfully submitted with all the required documentation.
What are the benefits
The benefits of company formation in Malta include:
- Tax benefits
- The prestige of operating a company in the European Union
- The incorporation costs are low
- Low maintenance costs
- Reliable banking system
- A strategic location
- Double taxation treaties
- Highly educated and skilled workforce
Why Malta
Malta provides solutions for a wide range of business and investment needs. Whether you want to form a company as a part of a structure for asset holding, you are looking to set up a trading company or you are looking for an investment vehicle, Malta’s friendly business environment is one that delivers. Its competetive tax system along with fast incorporation and a network of double taxation agreements are key reasons why entrepreneurs and investors from across the globe are looking into company formation in Malta.
Our team
Our team of financial experts at FormationWise is here to help make sure that the process is as quick and efficient for you as possible when you are looking to get things going in this exciting jurisdiction.
Steps for making an order
- 1
Select your desired package
Simply choose the right package for your needs by filling out our form, by call or by placing an order on our website.
- 2
Make a payment
After finalizing the correct package make the payment for your selected services and send us your documents.
- 3
Send your documents
Forward us all the necessary documents through an email with documents attached or by phone
- 4
Company formation
Once we receive the payment and the required documents, we will start the company incorporation process in Malta
- 5
Open a bank account
We will help you open a corporate or personal account with a reputable bank in Malta
Types of companies that can be registered in Malta
There are several types of companies that can be registered in Malta. They include partnerships, limited liability companies in both the public and private realms, sole proprietorships, investment companies, branches (of foreign companies) and co-operatives. With this said, it is worth taking some time to go into further detail about each of these types of companies.
Partnerships
Partnerships can be created in Malta in the case that two or more members form a business to make a profit. The creation of a partnership is done by way of a Deed of Partnership. This sets out the names of the partners and the objects of activity. In general partnerships, one or more of the partners share in the obligations and the liabilities of the company’s assets and debts.
Public Liability Companies
Publically traded limited liability companies that operate within Malta’s jurisdiction can offer the public shares or debentures as a means of raising funds. Unless registered with a prospectus issued, these companies are not allowed to issue any form of application for shares/debentures. Public limited companies must nominate two directors.
Private Limited Liability Companies
Private limited liability companies have to draft their Articles of Association and Memorandum of Association. There are restrictions on shares being transferred and private companies cannot have more than 50 members. They are also restricted from raising funds by offering shares or debentures.
The number of shares held limits the liability of shareholders. It is also important to note that private limited companies are not restricted to objects of business operations numbers. Practices must always be lawful/legal. It is required that a private company appoints at least one director who will manage its business. A company secretary must also be appointed to manage the company’s administrative functions.
Sole Proprietorships
One of the simplest types of businesses you can open in Malta is a sole proprietorship. This is a business that is solely run by a self-employed person. Sole proprietors are required to take up permits and licenses in accordance with the Maltese Companies Act of 1995.
Branches
Branch offices of foreign companies perform their day-to-day business functions according to the directions that are issued by the parent company. These companies can include joint-stock companies and subsidiaries.
Co-Operatives
Co-operatives established in Malta are governed by the Co-operatives Societies Act of 2001. Article 20 of Malta’s constitution dictates that a state has to recognise the social function played by the work done by co-operatives. Because of this, their development should be encouraged. The income of co-operatives is exempt from the payment of income tax as stated in the Income Tax Act – Article 12(1)(q).
Investment Companies
Investment companies established in Malta can operate under the rules of a business trust, limited company, corporation or partnership. The three major investment company categories in the jurisdiction are closed-ended funds, mutual funds and unit investment funds.
Minimum share capital for Maltese companies
The minimum share capital that is required to launch a publically traded company in Malta is €46,587.47. For private company formation in Malta, the minimum share capital is €1,164.69. It is required that authorised share capital is subscribed by at least two individuals. At the same time, if it is a company with a lone member, the share capital can be prescribed by one individual who is the lone shareholder.
Share capital must be fully subscribed in the memorandum in the case that it is equal to the minimum legal amount. Public companies must pay 25 per cent of the nominal value of each taken-up share up front on the signing of the memorandum. Private companies must pay 20 per cent upfront.
Time frame for the incorporation
One of the key factors that draw entrepreneurs and investors to Malta for company formation is the fact that the incorporation process is quick and relatively straightforward. The length of time to incorporate is generally a few working days once the registrar receives all of the original documentation that is required as a part of the application process. When you choose our services at FormationWise, you can count on an incorporation timeframe that is successfully wrapped up as quickly as possible.
Do you provide a registered office address or a virtual office?
Yes
Is bookkeeping or an annual return required?
Yes
Foreign-ownership allowed?
Yes
Our Services
Reasons to form a company in Malta
The reasons to form a business operation in Malta’s jurisdiction are many. A few of the most notable advantages of setting up a business operation in this exciting EU jurisdiction include:
Low Effective Corporate Tax Rate
Though Malta’s 35 per cent corporate tax rate may appear high on the surface, it is important to note that it is possible to reduce the rate by up to 5 to 7 per cent. This can be done by distributing profits to a holding company that is registered in another jurisdiction. Taking this legal tax move can help to reduce the effective corporate tax rate that businesses pay to the point that it can be considered to be the lowest in the EU.
An Exciting Business Environment
Malta is an exciting business environment that is expected to continue to grow. Industries that are thriving in the market include electronics, financial services, tourism, pharmaceuticals, aviation, training/education, healthcare and ICT/shared services.
Fewer Restrictions on Business Expenses
Legislation in Malta is very relaxed when it comes to business costs that you can claim back through your company.
A Highly Skilled and Educated Workforce
The workforce in Malta is a highly educated and highly skilled one. This is yet another advantage to setting up a business in the jurisdiction.
The Prestige of Operating a Business within the European Union's Borders
Malta’s EU member status makes it a desirable location for company formation from a standpoint of prestige. Its business-friendly environment along with its EU status helps to make Malta one of the most popular destinations around the world for the formation of offshore companies.
Low Minumum Share Capital Requirement
Malta’s minimum share capital of €1,165 is lower than many other jurisdictions around the globe. This means that setting up business operations in Malta can be quite a cost-effective endeavour.
These key factors help to demonstrate why Malta is considered by investors and entrepreneurs to be among the most desirable jurisdictions for offshore company formation. Our team at FormationWise is ready to go into further detail with you about these advantages that Malta offers when you contact us and take advantage of your informational consultation.
Why choose FormationWise when setting up an offshore company in Malta
When you choose FormationWise to assist you in forming a company in Malta, you are working with experienced professionals with significant experience regarding the jurisdiction. Our extensive network of global partners is dedicated to offering the best company formation services available. A few notable reasons why we are your go-to company formation team for launching your business in Malta include:
Our Complete Range of Company Formation Services
At FormationWise, we offer a full listing of company formation services that are designed to help you start a company in great jurisdictions like Malta. Our service offering includes serviced offers, document retrieval, trademark registration/taxation and private client services. These services are delivered by our global network of highly experienced and qualified partners.
We Offer an Informational Consultation Free of Charge
We offer a free preliminary consultation for our company formation services. During your consultation, we will discuss company formation strategies as well as the provision of services that you will require to meet your goals.
You Can Count on Secure Service
We take safety and security seriously at FormationWise. When you work with us for company formation, you can rest assured that all of your personal and financial information is safe.
Our Services Are Fast, Reliable and Cost-Effective
We take pride in offering fast, reliable and cost-effective services here at FormationWise. You can count on us working to help you get your company in Malta up and running as quickly and efficiently as possible. Our pricing is competetive within industry standards and we take transparency seriously. You will never have to worry about being charged hidden costs/ fees when you work with our company formation experts.
Legal requirements
The only essential legal requirement for company incorporation in Malta is the Memorandum of Association. It contains information on important points that include company directors, company name, capital, company secretary and subscribers. Articles of Association which have been tailored to the business are used to regulate the company’s internal management. This includes regulation of the relationship between company directors and company members. It also pertains to shareholder rights. The Articles of Association are submitted alongside the Memorandum of Association.
Documents required for registration
Documentation for company registration must be sent to the registrar at the Malta Business Registry. The registry is the government agency that oversees the registration of companies and commercial partnerships in Malta. It also is responsible for ensuring regulatory compliance within the jurisdiction. The primary documentation that is required to complete company formation in Malta is a Memorandum of Association. This memorandum includes the following information:
- The company's name
- Proof of a registered office in Malta
- Company directors (names/addresses)
- Company secretary (name and address)
- Shareholder names and addresses
- The name of the registered agent
- The names of the board managers
- The objects of activity along with the required minimum share capital
- Capital subscribers
- Articles of Association
Articles of Association that have been specifically tailored are submitted to the registrar in Malta. This refers to the internal management of the company. It is submitted alongside the Memorandum of Association. It is important to note that the information contained in the Articles of Association and the Memorandum of Association can vary depending on the specific category of company formation in Malta that you are doing.
Our company formation professionals at FormationWise will ensure that this documentation is in order for the specific type of company you are launching. Identification papers such as copies of passports for the directors and secretaries must be submitted to the Business Registry located in Malta.
What is the process?
The company formation in Malta registration process involves the submission of all required documentation along with your application. The application can be submitted online or in paper format.
All of this information is sent to Malta’s official Registrar of Companies. Your required fees must be paid up along with the required share capital that must be paid.
Upon receiving all documentation and fees, you can expect to complete your company incorporation process within a matter of days.
Our company formation experts at FormationWise have extensive experience helping investors and entrepreneurs to form companies in Malta. You can count on us to make sure that everything is in order so you can navigate the process effectively.
Cost of company formation in Malta
The minimum company formation in Malta fee is €100 if the application is submitted in the electronic format. The fee for paper format applications is €245. This is for companies with an authorised share capital of up to €1,500. These fees go up as the authorised share capital for the company increases.
The maximum electronic application fee is €1,900 for companies with an authorised share capital over €2,500,000. The paper format application fee is €2,250.
These fees are sent to the registrar. It is important to note the difference in registration fees will be levied in the case that a company later increases its authorised share capital. Registration fees must accompany the Articles and Memorandum of Association as well as all other required documentation. A bank deposit advice should also be provided as evidence of share capital being paid up.
FAQ
For individuals in Malta, income is taxed at progressive, graduated rates. These range from 0 to 35 per cent. The 35 per cent tax bracket is reached when individuals earn in excess of €60,000. Companies operating in Malta are subject to a tax rate of 35 per cent. It is important to note that there is no corporate tax structure in Malta separate from income tax. Double tax relief is available for unilateral relief, by way of Double Tax Agreements and for the flat-rate foreign tax credit. Malta also participates in the exemption on capital gains which extends to a company’s domestic holdings of shares.
All companies incorporated in Malta have to appoint a company secretary. The secretary is appointed by the shareholders of the company in the Memorandum of Association. In the case that a secretary is removed by the director, a new one must be appointed within 14 days. The law states that the person appointed as company secretary should be knowledgeable about the local economy. The law does not require them to be a resident of Malta.
Maltese law allows for foreign ownership of companies that operate in the jurisdiction. Private and public companies must deposit a specific amount of funds to get their business up and running in the country. The process of company formation in Malta is a relatively quick and straightforward process and can often be conducted without any need for you to physically visit the country. This is another great reason to choose our company formation professionals at FormationWise if you are looking to form a company in Malta.
Malta is known for its friendly business environment which makes it an attractive jurisdiction for investors and entrepreneurs from around the world. It is known for its low set-up costs, good tax incentives, favourable tax rates and a workforce that is highly skilled and educated. Businesses in Malta also benefit from the country’s membership in the European Union. The Maltese economy has a heavy focus on foreign trade, tourism and manufacturing.
Companies operating in Malta must appoint at least one director to form a limited liability company. The director can be a citizen, resident or non-resident. Limited liability companies within the jurisdiction must also have at least two shareholders. These shareholders can be individuals or they can be a corporate body. Company shareholders can be Maltese citizens, residents or foreign nationals. In the case of public companies, there is no shareholder number limit. Private companies in the jurisdiction can have a maximum of 50 shareholders.
Company formation in Malta can be done online. Those looking to start companies within the jurisdiction must fill out an online application form that will state the type of company being formed. Our global network of company formation partners here at FormationWise can assist you through the process of Malta company formation. This includes making sure that everything is in order related to online applications and required documentation. When you work with us to conduct your company formation in Malta, we will help you determine what annual services you will require to operate your company in this exciting market.
If you are planning on company formation in Malta, you will need to open a business bank account within the jurisdiction. Setting up a bank account is one of the first overall steps required in the incorporation process. To set up a Maltese bank account, you will be required to provide documentation that verifies your identity and states your business activities. Assisting you with setting up bank accounts is one of the key services that we offer to our clients here at FormationWise.
When setting up companies in Malta, you must register your company’s name. This registration is done through Malta’s Registrar of Companies. Registering your company name with the registrar is a simple matter of submitting all required documentation. Business owners can choose any name for their company as long as it is not the same or similar to the name of an existing company. It must also not be a name that has been previously reserved. It is worth noting that the Registrar of Companies can refuse to register a company name if it would be considered undesirable/offensive.
Yes, a local address is necessary for the incorporation of a company in Malta. All companies operating in the jurisdiction must have a registered office that is located in Malta. This is another area where our team at FormationWise can assist you in your company formation efforts. We can assist you in arranging a registered office located in Malta so you can achieve your goal of becoming the owner of a company in the market.
The process of incorporation for public and private companies in Malta is one that is notable for being relatively quick and easy. It is normal for the registration process to be completed by way of a Certificate of Incorporation that is provided by the Registrar of Companies. This is often received within a week of the delivery of the application and all required documentation. Working with our financial professionals at FormationWise is a proven way to ensure that the process of incorporation is carried out as quickly and efficiently as possible.