Company Registration In Malta in 2023-24
Malta is an island nation that is situated in the center of the Mediterranean Sea. Malta has established itself as a perfect location for business owners from all over the world because of its efficient port infrastructural facilities and European Union membership. Malta is among the most secure nations in the EU.
There are numerous governmental initiatives in place intended to foster entrepreneurship in the nation. Approximately three-fifths of the workforce in Malta is employed in the service sectors, which make up nearly half of the country’s GDP. The tourist industry is the nation’s main source of income with a contribution of 980 million for the year 2021. Along with that, about one-fifth of the nation’s GDP is contributed by the manufacturing industries. All this makes Malta one of the most ideal locations for entrepreneurs.
This article describes how an entrepreneur can easily go for company registration in Malta. It will further discuss the steps, documents, criteria, and benefits of Malta company registration.
Procedure to register a company in Malta
Malta company registration can be done by following the steps given below:
Decide a business structure
One of the first phases of Malta company registration is to choose the business structure for your firm. You can choose to establish a limited liability company, partnership, sole proprietorship, overseas company, or any other form of business available in Malta.
Select a business name
Once the business structure has been decided, the next step is to decide on a name for your organization, however, the selected name must not be exact or related to the names of already-existing organizations. It shouldn’t contain any language that the general public finds offensive. The name of the organization shouldn’t be misleading in terms of the type of business it conducts.
Our experts at Odint can assist you in selecting the most appropriate name for your organization.
Deposit the required share capital
The entrepreneur has to open a bank account and deposit the minimum share capital to incorporate the organization in the country.
Gather the required documents
Gather the documents required to register a company in Malta such as the articles of association and memorandum of association of the firm.
The entrepreneurs of the firm must submit a supplemental form, Form BO1, together with the application if any of the stockholders of the business are corporate entities.
Apply for business registration
Submit a request for incorporation of the company along with the documents to the Malta Business Registry (MBR).
Acquire the Certificate of Registration
The document will be verified by the Registrar, and if it is authentic and valid, the certificate of registration will be granted. This indicates that the firm has been established and given permission to operate.
Register for tax purposes
The company must apply for VAT registration after acquiring its certificate of incorporation from the Registrar of Companies. If the organization is established as a “trading entity” and not as a “holding entity,” the VAT rate is set at 18%.
Acquire business licenses
Once the business has been registered business must acquire different business licenses to conduct operations in the country.
Documents required for Malta company registration
The following is the paperwork needed to register a company in Malta:
- Articles of association of the firm
- Proof of depositing share capital in the business bank account
- Form BO1
- Details of the directors and stockholders of the firm
- Details of the company’s registered office address in Malta
- The corporate structure and its primary business activity
- Memorandum of association of the firm
Types of Companies in Malta
The various legal entities you can choose for Malta company registration are:
1. Limited Liability Company (LLC)
A Limited Liability Company is the most well-known type of corporate organization in Malta.
There are two kinds of LLCs available in Malta:
- Public LLC: Public LLCs in Malta have the choice to raise funds by distributing securities to the general public in the form of stocks and debentures.
- Private LLC: A Private LLC in Malta is not allowed to ask the general public to purchase stocks and debentures. Members of a Private LLC in Malta are only accountable for their contribution to the company. A Private LLC may only have up to 50 stockholders.
2. Partnership Firms
A partnership is a legal entity with a different legal personality from its participants. Maltese partnership has the legal right to own and hold real estate in its own name.
There are 2 different kinds of partnerships:
- General partnership: A general partnership is incorporated when two or more individuals collaborate on any economic endeavor with the intention of making and splitting profits.
- Limited partnership: A limited partnership must have a minimum of two partners, one of whom must be a general partner with unlimited responsibility.
3. Sole Proprietorship
A sole proprietorship’s owners are entirely liable for all business-related decisions and obligations. It is the simplest basic business structure offered in Malta and is preferred by independent business owners.
4. Overseas Company
An organization that has its business headquarters outside of Malta is known as an overseas corporation. Within 1 month of opening a branch office or a place of operation in Malta, an overseas corporation that wishes to incorporate and engage in business activity in Malta must enroll with the Registrar of Companies in Malta.
Eligibility criteria for company registration in Malta
| Quick Features | |
| Types of companies that can be started by foreigners | Limited liability company Public Company |
| Minimum share capital for LTD Company and paid-in requirement | 1200 shares of €1 each – 20% paid up – ie: €240 |
| Minimum number of shareholders for Limited Company | 1 |
| The time frame for the incorporation (approx.) | 1-2 weeks |
| Corporate tax rate | 35% – but refund of 30% to shareholders – net effective tax of 5% |
| Local director required | No |
| Are any tax exemptions available? | Net effective tax of 5% No dividend income tax – no stamp duty upon transfer of shares No capital gains and no transfer pricing regulations |
- Directors: Every private firm is only required to have a minimum of one director, whereas every public corporation is required to have a minimum of two directors.
- Business secretary: In Malta, a corporate secretary is required for every business.
- Capital requirements: A public business must have a minimum required capital of at least EUR 46,587.47. A private business must have a minimum required capital of EUR 1,164.69 for company registration in Malta.
- Registered office: Each company that is established in Malta must set up a registered office in the country.
- Annual general meeting: Annual general meetings are required for all corporations in Malta.
Tax Structure for Malta company registration
Companies that are registered in Malta are required to register with the tax authorities in order to pay various business taxes.
An entrepreneur in Malta must pay the following business taxes:
- Corporate income tax: The CIT rate for businesses in Malta is 35%.
- Value-added tax: The standard VAT rate on products and services is 18%. However, specific products and services are liable to a lower VAT rate of 7% and 5%.
- Payroll taxes: According to the Final Settlement System (FSS) regulations, a business must deduct income tax and social security contributions at source from their workers’ paychecks.
- Social security contributions: Employers are obligated to provide social security contributions at standard rates equal to 10% of each worker’s wages.
Cost for company registration in Malta
The cost of company registration in Malta is something the entrepreneur must take into account when starting a business.
Here are the various expenses that businesses should consider while incorporating a firm:
- Business registration cost: The normal registration price for a business that must be paid to the authorities in Malta is EUR 245. Nevertheless, this could change based on the company’s chosen share capital level.
- Accounting expense: Accounting expenses may cost approximately EUR 160 per month.
In addition to that, while registering a firm, an individual must consider various other expenses such as that of recruiting workers, costs associated with opening a bank account, acquiring business license, and so on.
Why register a company in Malta?
- Malta has English as one of its official languages as such 88% of people in the country speak it.
- Malta provides its entrepreneurs with a modern telecommunications network and access to a pool of professionals with high levels of expertise.
- Malta outperforms its surrounding EU nations when it comes to variables like GDP per capita, healthier periods of life expectancy, and social benefits.
- Malta is situated in the middle of the Mediterranean Sea and is bordered by Gibraltar, Sicily, and North Africa. The Maltese islands are acknowledged for serving as an entryway to the marketplaces of Europe, Africa, and the Middle East due to their great location of the nation.
- Malta has an atmosphere that encourages constant expertise and regulations. The island also offers wonderful advantages including a tax-efficient marketplace that enables business entrepreneurs located in Malta to market their goods and services across the EU.
Advantages of company registration in Malta
The numerous advantages of company registration in Malta are:
1. Double taxation avoidance agreements
Malta has struck approximately 70 double taxation avoidance treaties with different nations that safeguard businesses from double taxation, as such foreign investors may find it attractive to establish their firms in the country.
2. Attractive tax system
International entrepreneurs that wish to reduce their taxes and increase their investment opportunities find Malta’s tax regime to be appealing. The corporate income tax in Malta is 35%, however, the firm’s stockholder is entitled to a reimbursement of the tax that the corporation has already paid.
3. Extremely qualified workforce
In comparison to other EU nations, Malta has a world-class educational system and comparatively affordable living expenses.
4. Visa-free zone
There are no travel prohibitions between Malta and other Schengen nations because Malta is a member of the Schengen region.
Conclusion
Company registration in Malta can offer an entrepreneur numerous advantages. Those entrepreneurs who register a company in Malta can benefit from its English-speaking population, extremely qualified personnel, visa-free zones, double taxation treaties, efficient infrastructural facilities, and attractive tax system. These countries offer everything for an entrepreneur to enter the market and survive in it very efficiently. The cost of operations and all the other factors for a suitable business ecosystem is presented by the economy of the country.
If you wish to register a company in Malta, you can speak with our company formation experts at Odint Consulting. Our experts will guide you with the procedure of Malta company registration.
FAQ’s
- Malta provides its entrepreneurs with a modern telecommunications network and access to a pool of professionals with high levels of expertise.
- Malta outperforms its surrounding EU nations when it comes to variables like GDP per capita, healthier periods of life expectancy, and social benefits.
- Approximately three-fifths of the workforce in Malta is employed in the service sectors, which make up nearly half of the country’s GDP.
The normal business registration cost that must be paid to the authorities in Malta is EUR 245.
The CIT rate for businesses in Malta is 35%.
Those entrepreneurs who register a company in Malta can benefit from its English-speaking population, extremely qualified personnel, visa-free zones, double taxation treaties, efficient infrastructural facilities, and attractive tax system.
- Limited Liability Company (LLC)
- Partnership Firms
- Single-Member Company
- Overseas Company
Submit a request for incorporation of the company along with the documents to the Registrar of Companies in Malta.
