Top Benefits of Incorporating a Company in Malta: Your Essential Guide

Incorporating a business in Malta comes with an array of compelling benefits that cater to both local and international entrepreneurs. Here’s a succinct overview of the key perks of Malta company incorporation:

Tax-Exempt Holdings

Companies registered in Malta can enjoy tax exemptions on their holdings, provided they meet specific criteria. This feature is particularly beneficial for holding companies looking to optimize their tax liability.

Highly Competitive Tax Rate

Businesses operating in Malta can benefit from an impressively low effective tax rate, which can be as little as 5% on trading profits. This is one of the most competitive corporate tax rates within the European Union, making Malta an attractive jurisdiction for global businesses.

Zero Withholding Taxes and Stamp Duties

Malta doesn’t impose withholding taxes, stamp duties, or any other financial barriers when it comes to profit distributions to shareholders who are non-residents. This ensures ease of capital flow and can significantly enhance the financial flexibility of the company.

EU Membership Advantages

As a member of the European Union, Malta offers companies full access to EU markets along with all the associated benefits and protections. This provides a secure and advantageous regulatory framework for businesses.

Ease of International Business Expansion

Companies incorporated in Malta can easily scale their operations globally with just a few adjustments. The regulatory setup of Malta is conducive to international business activities, making global expansion more straightforward.

English as a Language Advantage

The official use of English in Malta greatly simplifies business communication and transactions. Being an English-speaking country eradicates language barriers, which is particularly beneficial for international businesses.

Malta Residency Regardless of Location

Companies registered in Malta are deemed residents of the country even if their operational activities or ownership are located outside Malta. This provision offers tremendous flexibility for businesses to operate internationally while still reaping the benefits of Malta’s favorable business environment.

No Requirement for Maltese Nationals or Residents

Incorporating a company in Malta does not necessitate Maltese nationals or residents to be part of the ownership structure. This inclusive policy opens up opportunities for a wide range of global entrepreneurs and investors.

Flexibility in Banking Options

Malta-based companies have the freedom to hold their financial assets in banks situated outside of Malta. This flexibility allows companies to choose banking partners that align best with their financial strategy.

By offering these diverse and advantageous features, Malta positions itself as an excellent choice for entrepreneurs looking to incorporate a company that is both tax-efficient and flexible in its operational scope.

How to Set Up a Company in Malta: A Streamlined Guide for Efficient Incorporation

Establishing a company in Malta is a straightforward and cost-effective process, making it an attractive option for both large corporations focused on tax planning and small to medium-sized businesses. Here’s your essential guide to setting up a company in Malta:

Affordability of Company Formation

One of the major advantages of incorporating a business in Malta is the affordability factor. The company formation costs in Malta are relatively low, making it a cost-effective jurisdiction for businesses of all sizes. This makes Malta a go-to destination for entrepreneurs looking for cost-efficiency in their incorporation process.

Simplified and Efficient Process

Malta aims to be a business-friendly jurisdiction and has, therefore, streamlined its company incorporation procedures to be among the most efficient in the European Union. The straightforward process is designed to attract a diverse range of businesses to the country, simplifying the often complex procedures seen in other jurisdictions.

Step-by-Step Malta Company Incorporation Procedure

1. Due Diligence Exercise: The first step in incorporating a company in Malta is a standard due diligence exercise. After completing this, you’ll receive an Incorporation Proposal Form that asks for all the pertinent information regarding the company you intend to establish.
2. Drafting of Incorporation Documents: Once the Incorporation Proposal Form is received and reviewed, incorporation documents are drafted, typically on the same day. These documents contain all the essential corporate details and are sent to you for your approval.
3. Approval and Final Incorporation: After receiving your approval on the drafted incorporation documents, the final step is to officially incorporate the company in Malta. The process is quick and usually completed promptly upon receiving your go-ahead.

By adhering to this streamlined process, entrepreneurs and businesses can efficiently set up a Malta-based company, benefitting from the country’s advantageous tax regime and business-friendly environment.

Once your Maltese Company is setup, we could assist you in all other services you might want for your Company in Malta:

• Malta Company Management
• Back Office Services
• Banking Solutions
• Licensing

Malta Company Taxation

Malta is, above all, a tax efficient jurisdiction for holding and trading companies. Furthermore, the UBOs of Trading Companies in Malta can enjoy effective tax rates of as little as 5%. Those of Maltese Holding Companies may also achieve tax neutrality.

Most Popular Tax-Efficient Company Formation in Malta

Private Malta Company Incorporation

A private limited Malta company is the most popular type of partnership. The limited liability Maltese company is, in fact, the only type of company allowed by the Companies Act. As its name indicates, companies in Malta have a separate legal personality. This limits shareholder liability to the amount of unpaid share capital. With the correct guidance, a limited liability company can be set up in a manner that allows for optimum tax efficiency.

Steps to Establish Your Company in Malta:

1. Choose Your Business Structure: Select the appropriate legal structure for your company, such as a Limited Liability Company (LLC), Public Limited Company (PLC), or a Branch Office.
2. Select a Company Name: Choose a unique and suitable name for your company, adhering to Malta’s naming conventions and regulations.
3. Appoint Directors and Shareholders: Identify individuals who will serve as directors and shareholders of the company. These roles can be held by both residents and non-residents.
4. Registered Office and Agent: Secure a registered office address in Malta and appoint a registered agent to fulfill legal requirements.
5. Draft Company Memorandum and Articles: Prepare the company’s Memorandum of Association and Articles of Association, outlining its purpose, structure, and rules.
6. Submit Documentation: Compile and submit the necessary documentation to Malta’s Registry of Companies, including company statutes and details of directors and shareholders.
7. Acquire Necessary Licenses: Depending on your business activities, certain licenses or permits may be required. Our experts can guide you through the application process.
8. Tax Registration: Register your company for taxation purposes and obtain a Tax Identification Number (TIN).