Company registration in Malta

Entrepreneurs opt for Malta as their operational base, particularly in fintech and online gaming domains, due to advantageous terms extended by the government. Moreover, avenues exist to hire skilled personnel for business expansion. Let's now dissect the procedure. We will delve into the prerequisites and distinctive attributes of instituting a business.

Advantages of inscribing a company in Malta in 2024

• aliens have ability to possess shares within Maltese corporations.
• taxation structure is competitively positioned.
• economic and political circumstances exhibit stability.
• taxation policies are deemed competitive.
• procedure of registering a company in Malta can be conducted from a distance.
• no obligatory requirement for board meetings to take place in Malta.
• furthermore, Malta boasts an expansive web of double taxation agreements.

Types of enterprises

One can find various categories of companies that can be established in the nation under framework of the Companies Act. You have a range of alternatives available, for instance:

• Admission of individual entrepreneurs

The simplest of options is to establish an individual agency in Malta, and this is the least restrictive, as only a private individual is needed to initiate an individual company. This individual will be exclusive owner of the business.

• LP enrollment

Differing from sole traders, partnerships necessitate at least two members to be registered. Both individuals and organizations are allowed, without limitations on ownership. Depending on the kind of partnership formed, you might have complete authority over business. Being a limited or a general partner is possible.

• Register LLCs

One of Malta's more common forms of business ownership is a limited liability company. There are two sorts of LLCs. From this viewpoint, it is feasible to:

1. Enroll a secluded company with restricted responsibility;
2. Enlist a communal limited company.

Each classification encompasses a distinct prerequisite for the minimal inaugural capital. When contemplating the establishment of a secluded Limited Liability Corporation (LLC), the obligatory amount will be no less than 1,200 euros. Out of this sum, a minimum of 20 percent must be allocated into deposit during the commencement of incorporation. In the circumstance of instigating a communal Limited Liability Corporation (LLC), a minimum of €47,000 must be procured, and at least 25 percent of this sum should be consigned into a bank account while progressing through the Malta incorporation procedure. It is of significance that communal LLCs possess the entitlement to access the Maltese stock exchange and hold the potentiality to transact their stakes on the stock market.

• Listing of a branch or representative office

Non-local entities may open a branch or register a subsidiary.

• Holding company registration

Per local statutes, the distinction between commencing a holding establishment and enrolling a commercial enterprise lies in the entity's operations. Domestic holding firms are authorized to function both within the Eurozone and beyond its frontiers.

How to open a company in Malta for non-residents

To establish a firm in Malta, specific prerequisites must be fulfilled. These encompass:

The administration of Maltese business activities is supervised by executives empowered with considerable discretionary power. Additionally, the Articles of Association should designate an individual of natural origin as the corporate secretary. This person undertakes an administrative capacity, carrying out distinct functions and responsibilities as per legal statutes.

After amalgamation, a Maltese establishment is subject to particular fundamental responsibilities, encompassing the upkeep of registries of participants and executives, as well as the submission of an annual account to the Registrar. Adjustments to the name, implicated parties, or stakeholder particulars mandate swift notification to the Registrar. This proves essential for implementing and mirroring such modifications on the official webpage. Neglecting compliance within the lawful timeframe could expose the entity to sanctions.

Once the business name has been safeguarded, the designated registered office identified, and the bank account set up, the process of incorporation can then duly initiate.

Steps of company incorporation in Malta

To commence an enterprise in Malta, a sequence of consecutive measures needs to be diligently followed. When embarking on the creation of a corporation, the entrepreneur must meticulously adhere to the subsequent directives:

1. Obtain a unique business name by registering it in the national commercial register.
2. Create a memorandum and articles of association (with obligatory notarization).
3. Fulfill the requirement of depositing the specified minimum share capital, contingent on the nature of the organization.
4. Complete the company's registration in the Trade Register by providing essential information about prospective owners and the enterprise itself.
5. If necessary, apply for a trade license in Malta or any specialized license mandated by the relevant authorities.
6. Undertake VAT registration and acquire a taxpayer identification number authorized by the Malta Revenue Authority.
7. Establish a corporate bank account customized for the Malta-based company, designated for its ongoing financial transactions.

It's important to note that specific sectors exclusively require a license to operate within Malta's jurisdiction. Industries encompassing finance, insurance, medical, and pharmaceutical domains are obligated by governmental requirements to obtain licenses from the competent bodies.

The duration for completing company registration in Malta usually spans approximately one week.

Required documentation to open a company

In the pursuit of establishing a business in Malta, the preliminary step involves the preparation of a comprehensive Memorandum of Association, encompassing vital particulars like:

• the designated corporate denomination.
• allocated capital.
• identified governors and equity holders of the establishment.
• designated corporate scribe.
• enlisted domicile.

In pragmatic execution, the Charter of Partnership is accompanied by discrete Regulations of Consortium, which are concomitantly tendered to the Registrar. This dossier assumes a pivotal function in overseeing the internal operational intricacies of the establishment, administering facets that revolve around the interplay among corporate associates and executives, while also delineating the prerogatives held by equity stakeholders.

The particulars enfolded in the obligatory Charter and Regulations of Consortium unveil a degree of diversification contingent upon the categorization of the enterprise. As an illustration, the Charter and Regulations of Consortium associated with a secluded Limited enterprise impose constraints on the transference of stakes and institute an utmost threshold of 50 associates.

Intriguingly, there subsists the legal potentiality of instituting an establishment exclusively through the engagement of a solitary shareholder, thus streamlining the operation of a solitary constituent enterprise. It persists as imperative that noteworthy specifics are scrupulously delineated within the Charter or Regulations of Consortium, conferring lucidity regarding the extraordinary nature of such an entity.

• define what shall be its principal activity;
• constrain the count of individuals possessing bonds of the corporation to a maximum of 50;
• prohibit any legal person from assuming the role of a governor.

The registrar shall also be furnished with proof that the subscribed stock capital has been remitted, such as a bank deposition voucher.

Tax rates

Businesses incorporated within a regional jurisdiction are categorized as residents, irrespective of whether these Maltese establishments are managed and administered within the nation's boundaries or extending beyond its geographical limits. These corporations are liable to the prevailing standard corporate tax rate of 35%. Intriguingly, a prospect emerges to attain a 6/7 tax reimbursement if business operations remain absent within Malta. This tax repayment is initiated through a formal petition, which is jointly lodged alongside the financial declarations to the tax authority. The duration for this refund procedure is contingent upon the local tax office's protocols.

In the case of trading entities, an alternative tax rate of 5 percent might potentially be applicable. While dividends maintain their exemption from taxation, a 10 percent computation is administered for royalty tax.

Conclusion

Malta emerges as a captivating destination for global investors owing to an assortment of compelling elements. Among these factors, the opportunity to remotely establish a business in Malta stands out. The nation boasts a skilled and adept multilingual workforce, with English as the official language, supplemented by widespread proficiency in Italian, French, and Spanish. Additionally, Malta's membership in the EU since 2003 heightens its allure, providing an array of benefits to potential investors.

It proffers an all-encompassing assortment of organizational and juridical frameworks for businesses. Leading the way amid these choices is the greatly coveted selection of establishing a Maltese Restricted Liability Corporation (LLC). Furthermore, numerous additional commercial configurations, encompassing autonomous undertakings and collaborative enterprises, are qualified for enrollment. A notable aspect to ponder is that the procedure for enrolling a corporation can be accomplished bereft of the requirement for a physical sojourn to the nation. Should any further queries arise, our dedicated professionals are readily accessible to offer guidance. We are dedicated to providing extensive assistance throughout the procedure of corporation enlistment in Malta.