How to Transfer an Existing Business to Malta: A Step-by-Step Guide

Are you looking to transfer your existing business to Malta? Malta offers one of the most attractive environments for businesses, with tax incentives, access to the EU market, and a stable legal framework. Whether you’re moving operations for better tax optimization or expanding to reach a broader European audience, transferring your business to Malta is a strategic move.

With the help of E&S Group, we make the process of transferring your business to Malta straightforward, efficient, and fully compliant with local regulations.

Why Transfer Your Business to Malta?

1. Significant Tax Benefits

Malta’s tax system is highly attractive for businesses. By transferring your business to Malta, you can benefit from an effective corporate tax rate of 5% through Malta’s refund system. Malta also has double taxation agreements with over 70 countries, including the UK, the US, and many EU nations, which help avoid double taxation on your income.

2. Access to the EU Market

Transferring your business to Malta gives you unrestricted access to the European Union’s single market, enabling you to expand your reach across Europe. With passporting rights, businesses operating in Malta can offer goods and services throughout the EU without additional regulatory barriers.

3. Business-Friendly Environment

Malta is known for its business-friendly regulatory framework and streamlined processes for companies looking to transfer their operations. The Maltese government actively supports foreign investment with incentives, grants, and tax rebates that can benefit your business.

4. Robust Legal Framework

Malta offers a transparent and stable legal system that is fully compliant with EU laws. This ensures that your business is protected under a well-regulated jurisdiction, with a clear focus on international business standards.

5. Skilled Workforce and Multilingual Talent

Transferring your business to Malta gives you access to a highly skilled and multilingual workforce. English is an official language in Malta, making it easy to communicate and conduct business internationally, while the country’s talent pool spans sectors such as finance, technology, and iGaming.

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Steps to Transfer Your Existing Business to Malta

1. Evaluate the Best Legal Structure

The first step in transferring your business to Malta is determining the most suitable legal structure for your company. You can either set up a new private limited company, establish a branch of your existing company, or opt for a holding company. At E&S Group, we can guide you through the options to choose the structure that best fits your business needs.

2. Company Re-Domiciliation

If your business is registered in a jurisdiction that allows re-domiciliation, you can transfer your company’s registration to Malta without the need to dissolve your existing company. Re-domiciliation allows you to maintain the same legal entity while moving to Malta, preserving contracts, agreements, and history. This is a cost-effective and efficient way to transfer your operations.

3. Register Your Company with the Malta Business Registry (MBR)

Once you’ve decided on the appropriate legal structure or re-domiciliation process, the next step is to register your company with the Malta Business Registry. Our team will handle the entire registration process, ensuring all legal documentation is in order, including the memorandum and articles of association, and any shareholder agreements.

4. Transfer of Assets and Contracts

During the transfer, you may need to move business assets, intellectual property, and contracts to Malta. Our legal team will assist with the transfer of assets, ensuring that all contractual obligations and intellectual property rights are protected under Maltese law.

5. Tax Registration and VAT Setup

To operate in Malta, your business will need a Tax Identification Number (TIN) and a VAT registration. Our tax experts will assist with registering your company for these, ensuring that you are fully compliant with Malta’s tax regulations. We will also work with you to optimize your tax strategy to make the most of Malta’s favorable tax environment.

6. Opening a Corporate Bank Account

A key part of transferring your business to Malta is setting up a corporate bank account. We will help you navigate the process of opening accounts with reputable local or international banks, ensuring your financial operations run smoothly during and after the transfer.

7. Relocate Your Employees

If you plan to relocate key employees to Malta, we assist with work permits and residence permits to ensure a smooth transition for your team. Malta offers attractive residence programs for foreign professionals, including those in senior roles or within specific sectors like tech and finance.

8. Ongoing Legal and Accounting Compliance

Once your business is transferred to Malta, it’s essential to ensure ongoing compliance with Maltese laws, including annual filings, tax returns, and regulatory updates. E&S Group provides ongoing accounting, auditing, and legal services to ensure that your business remains fully compliant.

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FAQs on Transferring Your Business to Malta

1. How long does it take to transfer an existing business to Malta?
The process can take anywhere from a few weeks to a couple of months, depending on the complexity of your business and the chosen method (e.g., re-domiciliation vs. setting up a new entity).

2. Can I re-domicile my business to Malta without closing it in my current country?
Yes, Malta allows the re-domiciliation of companies, meaning you can transfer your business without needing to dissolve it in its current jurisdiction. This allows you to keep the same legal entity while benefiting from Malta’s tax advantages and market access.

3. What are the tax benefits of transferring my business to Malta?
Malta offers an effective corporate tax rate of 5% due to its unique refund system, which makes it one of the most attractive tax regimes in Europe. Additionally, Malta has double taxation agreements with over 70 countries, ensuring that your business profits aren’t taxed twice.

4. Can I transfer my assets and intellectual property to Malta?
Yes, when you transfer your business to Malta, you can also transfer assets and intellectual property, ensuring that all contracts and rights are protected under Maltese law. Our legal team will guide you through the entire process to ensure a seamless transition.

5. Do I need to physically relocate to Malta to transfer my business?
No, you do not need to be physically present in Malta to transfer your business. However, if you wish to relocate key staff or management, we can assist with residency permits and work visas for Malta.

6. What ongoing compliance is required after transferring my business to Malta?
Once your business is established in Malta, you’ll need to comply with annual filings, tax returns, and regulatory updates. Our team will handle all of these ongoing requirements, ensuring that your business remains compliant with Maltese law.

7. How do I get started with transferring my business to Malta?
Contact E&S Group today to get expert guidance on transferring your business. We will handle everything from company re-domiciliation, tax registration, and compliance, to opening a corporate bank account and handling ongoing legal matters.

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Ready to Transfer Your Business to Malta?

Transferring your business to Malta can provide access to tax savings, EU market advantages, and a business-friendly environment. Whether you’re looking to re-domicile your company or start a new entity, E&S Group has the expertise to make the process seamless.

Get started today by learning more about our Malta company formation services or contacting us for a personalized consultation.

Contact Karl Schranz on LinkedIn or Deborah Vella on LinkedIn, or send us an email at corporate@ellulschranz.com.