Cost of Registering a Company in Malta

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The Republic of Malta is a little nation with stunning buildings and a welcoming populace. It is a part of the Maltese archipelago and is situated in central Italy.

Malta has an advantage over its European rivals thanks to its advantageous location in the Mediterranean Sea. The distance between Malta and the major capitals of Europe and North Africa is only a few hours.

 

Business in Malta

To shield sectors from double taxes, Malta has signed over 70 double taxation avoidance agreements with several countries. This makes starting a business in Malta appealing to foreign investors.

Companies from all over the world are choosing to register a company in Malta due to its competitive tax structure, a broad network of double taxation agreements, quick incorporation process, and educated workforce that speaks English. Malta offers a number of options to satisfy such needs, whether one is looking for a Malta holding company (to be utilized as a component of an efficient asset-holding structure), a Malta trading business, a ship-owning company, an investment vehicle, or a captive insurance company.

Private and public corporations can be registered in Malta rather quickly, but it is essential to be aware of the costs associated with doing so in advance.

In this article, we'll talk about how much it costs to register a business in Malta.

 

Methods for Registering a Company in Malta


A simple and online business setup

In Malta, forming a business is a simple process that may be completed remotely or online without having to leave the country. During a conference or phone call, our corporate service experts can expertly walk you through each step of registering your Maltese company. 

Requirements for registering a company - In order to register a company in Malta, you would need to:

i. Fill out a business application form online. This will help us determine the kind of company that is needed and the annual services that we must provide.

ii. Complete the shareholders' and directors' due diligence paperwork as required.

iii. Our compliance team will review the documents once they are received.

iv. The company's memorandum and articles will be drafted for signature once everything has been approved. Original signed documents must be couriered to our office.

v. The company will be established a few days after being received.

 

Experts will advise you on the following factors during the entire process:

- The Malta minimum share capital. This amounts to €1,200 per company, of which 20% must be paid upfront. In addition to our professional fees, there is also a €320 disbursement charge that must be paid to the authorities.

- Tax preparation. As an overview, the Malta trading company will be subject to a 35% tax on trading profits. Upon the distribution of dividends to the shareholder, the shareholder will be eligible to claim a tax refund on Malta tax paid in the amounts of 6/7, 5/7, or 2/3 depending on the stream of income, resulting in a net effective tax rate in Malta of approximately 5–10% depending on the refund claim.

- Substance specifications. In order to ensure that management and operations are being carried out from Malta to protect your company from international tax matters while enhancing the value of your Malta Company, we will be able to advise you on the necessary substance required in Malta, such as directors, shareholding, office space, and/or employees.

- A bank account is opened. Our knowledgeable staff can effectively walk you through the many alternatives for opening a bank account in Malta and other nations.

 

Types of Companies & Company Name


Limited Liability Partnership; Public Limited Liability Partnership.

A public company must have the letters "Plc." at the end of its name, while a private company must have the letters "Ltd." or "Limited."

 

Registration of Partnership Company in Malta.

The Maltese Companies Act permits two different types of partnerships. En nom collectif (also known as a "general partnership") or en commandite (often referred to as "limited partnerships") are these. Both Maltese partnerships are different legal entities from their partners and have their own distinct legal personalities. The law of Malta permits partnerships to hold property under any legal title, own it, and be sued.

 

Company versus Partnership in Malta

Depending on the type of partnership set up chosen, the formation of a partnership differs slightly from that of a corporation in that a partnership deed must be established in addition to the appointment of general and limited partners. With a few minor variations in the documents created, the procedure and timing are fairly comparable to those of a privately owned trading company. If certain requirements are completed, it is also feasible to change a Limited Liability Company (LTD) into a partnership.

 

Societas Europaea

Since Malta is a member of the European Union, our Maltese law permits the formation of a Societas Europaea (SE), also known as a European Public Limited Liability Company. Customers have the possibility to conduct business within the European Union without being constrained by the regulations of individual member states by choosing to have a SE formed. If such a corporation were registered in Malta, then Malta would be regarded as its home state and its laws would apply to it. Such businesses would be assigned a "SE" number following registration in place of a "C" number.

It is simple to move Societas Europaea throughout the EU/EEA, and it is typically created by a merger, consolidation, the creation of a holding company or subsidiary, or through reorganization. There are certain requirements for each setup, and we would be pleased to advise you on how to comply with them. An SE must have a subscribed share capital of €120,000 at all times.

 

Shareholders - Malta Company Incorporation

A minimum of one (1) shareholder is required for every Private Limited Company, and this shareholder might be either an individual or a corporate body. In the meanwhile, we can provide holding shares through CSB Trustees & Fiduciaries Limited, a member of the CSB Group, and a company that has a license from the Malta Financial Services Authority (MFSA) to offer such services. We are company formation agents offering a comprehensive range of Corporate Services. The expansion of the authorization to allow it to serve as a private foundation administrator has also been announced by CSB Trustees & Fiduciaries.

 

Directorship and company secretary in Malta

A Malta-registered business is required to have at least one (1) director, or two (2) in the case of public corporations, and one (1) company secretary. A company secretary must be an individual unless they are registered and licensed in Malta to offer or occupy such a position, in contrast to a director who may be both an individual and a corporate entity. Non-EU citizens who reside outside of Malta are eligible to serve as company directors or company secretaries.

For taxation purposes, it is becoming more and more important to make sure that the company is managed and controlled from Malta. Therefore, even though having a board made up of shareholders who live in Malta is not required locally, it is advised that at least half of the board should be made up of local directors, as well as a local company secretary who is familiar with Maltese law.

 

Steps for Opening a Bank Account

A person seeking to establish a business in Malta must locate a bank that is appropriate for the business's current structure and operations. These in turn need to be compatible with the bank's client acceptability and risk appetite. Due to our outstanding working relationships with numerous domestic and international banks, we can help you open a bank account. As an alternative to a full-fledged licensed bank account, one might want to think about electronic money institutions for online banking.

It is not necessary to create a bank account in Malta while forming a Maltese corporation because one can, if required, have one elsewhere. It could take a while to open a bank account in Malta. It's important to note that we have no influence over the bank's final decision, but with our help in reviewing the bank selected and the supporting documentation provided to the bank before submission, we can effectively make sure you're giving the bank the right information to improve your chances of success.

 

Fees for Company Registration in Malta

The cost of forming a company in Malta varies based on a variety of elements, such as the type of company being formed, the number of shareholders, and the services being utilized.

Depending on how difficult the registration process is, the cost to register a company in Malta often ranges from €1,000 to €3,000.

The private limited liability company (Ltd.) is one of the most frequently registered business entities in Malta. Generally speaking, the price of forming an LLC in Malta ranges from €500 to €1,500 and includes notary fees, business formation services, and commercial register expenses.

In addition to these expenses, starting a business in Malta also entails recurring expenses like taxes, accounting and legal fees, and insurance. It is critical to evaluate these costs when creating a budget for a new business.

The minimum share capital requirement, which is €1,165 for a Ltd., is one of the most expensive costs involved with forming a company in Malta. Before a business may be incorporated, its capital must be completely paid in and held in a Malta-based bank account.

Ordinary shares, preference shares, classes, and variants of each may be divided into the share capital. The use of bearer shares is prohibited in Malta. The inscription of firm shares or debentures in the register of members or debentures and the issuance of a share or debenture certificate serves as proof of ownership.

 

Additional Costs for Malta Company Registration:

Consider a few of the extra costs that will be associated with business registration in Germany for foreign investors that are interested in Malta company creation.

 

- Registration fee

Depending on where the firm is located, the usual registration charge, which is EUR 245 can change.

 

- Virtual Office Costs

The average monthly price for a virtual office is about EUR 125.

 

- Accounting Costs

Companies in Malta are required to maintain correct accounting records and to produce annual financial reports. The cost of accounting services and statutory audits may vary depending on a number of variables, including the size and number of employees in the business. The monthly cost of accounting services for your company can start at EUR 50 and includes services like tax counseling, bookkeeping, and many other services.

 

- Physical Office Costs

Depending on the office, this may cost between EUR 400 and EUR 180.

 

- Professional Service Fees

It is common practice in Malta to charge fees for hiring a professional corporation or business creation agency. These professionals assist you with the application process while making sure that all legal requirements are satisfied. The price of professional assistance varies depending on the level of support provided and how challenging the registration process is.

 

How Long Does It Take to Form a Company in Malta?

Depending on the type of company involved and the prompt delivery of all information and documentation to the relevant offices, the time needed to establish a company in Malta varies.

 

Taxes and double taxation agreements

With the right business structure in place, Malta can take advantage of some unique opportunities as a signatory to around 70 double tax treaties. In Malta, corporate tax is computed at a fixed rate of 35% on the gross profits based on the company's audited financial accounts. However, the overall net effective tax rate could be decreased to 0% in the case of holding company structures and 5% in the case of trading firms through the provision of a tax rebate scheme provided to shareholders of Malta-registered corporations. In either scenario, certain legal requirements must be met before shareholders are eligible for such tax returns. Tonnage tax ships owned or operated by authorized shipping companies are exempt from paying taxes in Malta.

 

Conclusion

The cost of forming a company in Malta might vary based on the nature of the business, the services it uses, and its size. The typical cost of forming a business in Malta is between €1,000 and €3,000, which covers notary fees, company formation services, and commercial register fees. It is advantageous to keep in mind the many factors that can help you determine the cost of forming a business in Malta while registering a company, such as business office fees, bank account requirements, business registration fee, fees for engaging a professional service, accounting and bookkeeping services, and so forth.

If you wish to contribute to our blog, please email us on morhadotsan@gmail.com.

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