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.
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