Setting up a company in Malta
Investors and entrepreneurs are highly interested in Malta, due to the financial, tax and commercial advantages that this position can offer.
The point of inflection for Malta occurred in 2010 when, still maintaining its advantageous tax regime, the country was moved to the ‘white list’. In other words, Malta was considered to be compliant with the the main principles of transparency and cooperation with other countries European Union. This is a key factor offering reassurance to investors as well as for foreign businesses trading with Maltese companies.
Malta relies on a Common Law system which makes it very similar to English rules and regulations. Of course, this is an advantage when trading with other countries, and in particular with those where English is the official language.
Types of entity
The Maltese system offers different options when it comes to incorporating a new entity. One of the most popular entities is the Maltese LTD (Private Limited Company), where the main advantage is that the shareholders’ liability is limited to the capital share.
The minimum capital share needed to incorporate this type of company is €1,200. In order to be fully compliant and duly registered, at least 20% of the said capital share should be paid into a bank account in the name of the company.
In relation to tax implications, Malta offers an advantageous tax system which is even more interesting when investors have the reassurance that they will be operating within a country listed in the ‘white list’.
As a general rule, the applicable corporation tax is equal to 35%. Nevertheless, when meeting certain criteria, it is possible to apply for a refund of up to 30%, which reduces the final applicable rate to 5%. This particular regulation is also known as ‘6/7th refund’ or ‘Tax Imputation System’. In simple terms, after paying corporate tax at the rate of 35% and paying dividends to the shareholders, where meeting the criteria, Maltese companies are allowed to request a refund of 30% of the 35% paid.
In relation to royalties and other intellectual property rights, the refund could be, instead, 25% of the 35% paid, leaving a final figure of corporation tax paid at a rate of 10%.
|Private Limited Company LTD|
|The service is comprehensive of the following:
Time frame to incorporate the company is between 3 and 5 working days.
|Assistance with the bank account opening for the new company|
|Assistance with the bank account opening for an existing company|
|Fiduciary services for shareholders|
|Fiduciary services for directors|
|VAT number application|
|Registered office in Malta|
|Set of documents legalised “Apostille”|
|Set of documents translated and legalised “Apostille”|
Should you require any other service not listed above, please do not hesitate to contact us.