From Idea to Reality: Register Your Malta Company in 2024

One of the first decisions you will need to make when you are about to set up your business is what legal format you want to operate under. This is one of the most important decisions you need to take at an early stage as it will determine how you will operate your business. The type of legal format you choose depends on what type of business you will be setting up and what industry sector you will be operating in. In addition, it also depends on the number of people investing money in the new venture.

Choose a Trade Name and Business Form

Select a Trade Name: Your company’s name must be unique and not similar to existing names in the Trade Register.
Choose a Business Form: Decide on the type of company structure that best suits your business model, such as a limited liability company (LLC).

The most common registration options are:

Self-employed / Sole Trader
Partnership
Limited Liability Company (LLC)
Cooperative

All business entities must register for VAT to comply with the local Value Added Tax legislation of 1998.

To register a company in Malta is a tempting option for many entrepreneurs. Malta is popular among entrepreneurs as it is built on the traditional Mediterranean approach to business. The main motivation for owning a company in Malta lies in the island’s preferential tax regime and the highly developed business services sector. The country’s economic success builds on a competitive economy based on foreign capital, financial services, and the growing number of newly opened companies in Malta, increasing year on year.

When deciding to register a company in Malta, one should keep in mind that it will be cost-effective only for entities generating a yearly income exceeding EUR 100,000. That is the case due to the costs of its operation, the need to carry out an annual audit, and the tax refund system based on trading and holding companies.

The incorporation of a company in Malta have two ways. A Maltese company may be set up either as private or as a public company. The main difference is that in a private company there are restrictions on how and to whom shares can be transferred. The incorporation of a Maltese company can have a vast range of purposes; the same company can be used for holding shares and assets and for carrying out trading activities.

In Malta, company incorporation is regulated by the Registry of Companies which forms part of the Malta Financial Services Authority (MFSA). Can a foreigner open a business in Malta? Yes. Company formation and registration is open to anyone in Malta - there're no restrictions to foreign ownership. Malta has one of the most business-friendly policies, it's easy for businesses to set up and operate on the island.

Company Directors

Any person of any nationality can act as a Company Director.

Company Secretary

Every company registered in Malta has to have a secretary who will be responsible for keeping:

The minute book of general meetings of the company
The minute book of meetings of the board of directors
The register of members
The register of debentures
Such other registers and records as the company secretary should keep by the board of directors.

The company secretary shall:

Ensures proper notices of all meetings
Ensures the preparation and delivery of all returns and other documents of the company in accordance with the requirements of the Companies Act, 1995

Bank Accounts

The Maltese company can operate bank accounts worldwide, if the board of Directors duly authorized the opening of such bank accounts. The board of directors also has the powers to appoint any other person to act as bank signatory on any specific bank accounts. Before registration, you must open a bank account in Malta and deposit the minimum share capital. For a private limited liability company, the minimum authorized share capital is EUR 1,165, with at least 20% paid up.

Registered Office

Each company registered in Malta must have a registered office in Malta where they hold all the documents and accounting records of the company.

Timeframe for Incorporation of a Company in Malta

Following the signing of the proposed Memorandum and Articles, the deposit of the share capital in a local bank account and the provision of all documents it should not take longer than five days to register the Company.

Why Incorporate a Company in Malta?

English is one of the two primary languages. Malta’s geographic position makes it the perfect logistics hub for trade links to Europe, North Africa and the Mediterranean. The Maltese Government is pro-business and in fact, is always proposing incentives for attracting FDI. Reasonable rental rate for industrial premises. The legislative framework is in line with the main EU directives which makes it sufficiently flexible and easy to relate to different legal systems especially those within the EU. Relatively low costs of living when compared to other parts of the EU.

Taxation of an Incorporated Company in Malta

Tax Registration: After obtaining the incorporation certificate, the company need to be registered as a taxpayer with the Maltese tax authorities to comply with local regulations.

Malta Corporate Tax

Malta operates a full imputation tax system which completely eliminates the economic double taxation of company profits. While the corporate tax rate stands at 35%, upon a distribution of dividends, the shareholders can get a refund of the Malta tax charged (generally 6/7ths).

Double Taxation Treaties

Malta has over 60 double taxation agreements, of which Maltese companies can avail themselves of.

Income derived from patents

Malta recently introduced a tax exemption applying to any income derived from patents. The exemption applies no matter where the patent was developed and no matter where it is registered, if that it is registrable in Malta.

Transfer Pricing

Malta does not have any transfer pricing regulations.

Thin capitalisation rules

Malta does not have any thin capitalisation rules.

CFC rules

Malta does not have any controlled foreign corporate rules.

Capital gains

In certain instances, gains derived from the disposal of shares in a company might be tax exempt.

Participation exemption

Malta has an attractive participation exemption regime which applies both for gains and dividends derived by holding shares into a foreign subsidiary.

Since the 1950s, Malta has introduced measures to attract entrepreneurs and investors from all over the world to develop the national economy and create more business opportunities in Malta. One of the most effective ways to attract foreign companies is Malta's preferential tax policy. In particular, the entire tax system of this country is strictly monitored by the EU, so it is extremely safe and legal. With numerous discounts and promotions for companies incorporated in Malta combined with being the gateway to Europe and the Middle East, the country is becoming one of the world's best investment destinations.

Estimated Time Frame to Register a Malta Company: The entire process can typically be completed within two weeks for company registration, while opening a corporate bank account may take approximately four weeks.

Additional Documents: Beside of the Memorandum and Articles of the company and supporting documents you will need identification documents, proof of address, and any necessary licenses depending on your business nature.

Cost Variations: Fees for registered office, administration, and ongoing compliance may vary. It's advisable to request a personal proposal based on your specific needs. Additional services such as payroll, audit, and tax return services based on your business needs. Do not hesitate to contact us for a quote.

In addition, to make it easier for you to choose the industry to set up a company, find here listed the top 10 businesses in Malta that are considered to have the most growth potential in 2024.

- Financial services
- Information and communications technology
- Distribution/export - import of electronic equipment
- Office services
- Health services
- Oil and Gas
- Logistics
- Training and education
- Gaming
- Airline service

With these top 10 businesses in Malta, we hope you will have an overview of which areas to invest in. At the same time, you can also carefully consider factors such as financial resources and long-term business plans before making the decision to set up a company in Malta.

There is no denying the fact that Malta, in financial services, has garnered an excellent reputation on an international level. Essentially, Malta has several attributes like the low set up cost, favourable tax rates, tax incentives and human resource effectiveness, making it an attractive base for a business.

If you're considering to register your company in Malta, the process is relatively straightforward. If you have any questions or need personalized assistance, feel free to contact us for a detailed proposal tailored to your business requirements.