Set up a company in Malta is a great opportunity to establish any business, experiencing the benefits of the competitive tax system of Malta. The process of creating one’s company is surrounded by several nuances that ought to be taken into consideration. Malta allows establishing different types of companies, providing a convenient environment for company directors and shareholders. Malta has become very attractive to investors from all over the world due to its advanced economy. The country is also considered one of the most prosperous countries that has developed IT industry and many other important fields.
It ties its economic industry with the countries of the European Union and has a skilled workforce, as well as a favorable taxation system. Malta is chosen by large international companies that have the opportunity to establish their headquarters in the environment supported by the European Union.
In this article, we describe all essential nuances of setting up business in Malta, what is required and how long it takes to establish your business in one of the strongest and favorable European countries.
Malta offshore company formation allows choosing between establishing branch offices or subsidiaries.Atrium Business Solutions
Why set up offshore company in Malta
In light of the global political and economic tensions, doing business with European partners is becoming increasingly difficult. But opening a company directly in the EU jurisdiction is a way out. Malta is one of the most attractive options for this. This Mediterranean island and its offshore company formation Malta are ideally suited for international business.
Malta is an important point at the intersection of trade routes between Africa, Asia, and Europe. Logistic connections are well developed here, so you can not only move anywhere in the world but also transport production to several continents. It is worth noting that this island is a member of the EU, so you can forget about the payment of duties when moving any goods between the member countries of the Union.
Ways to register company in Malta
Until recently, the procedure for setting up a business in Malta required the presence of the applicant for registration with all state authorities. Although this approach provides maximum transparency and security, it takes a lot of time and definitely does not attract wealthy foreigners too much. However, many governments are trying to keep up to date by introducing online services in public administration. Programs that allow any applicants to remotely receive any consultation, permission or certificate are actively used in many countries. As part of such projects, a new online service has been launched by the Malta government, allowing you to remotely open any enterprise in just 12 days.
Company types you can register
Today foreign investors come to Malta because the country provides many business vehicles they can choose according to their requirements to start a company. The question is, what type of offshore company in Malta one can establish.
The legislation of Malta allows establishing the following types of companies:
- Limited liability companies
- International holding companies
Limited liability company is the most popular in Malta and there are two types of them:
- Private LLC
- Public LLC
Due to low tax rates, a private limited liability company is considered a convenient platform for the creation of international trading activities. The company must have a unique name registered. The registrar of companies has a right to deny any name considered offensive or inappropriate. The name of the newly established company ought to end with the suffix Limited or, shortly, Ltd.
Requirements for companies
Malta offshore company formation allows choosing between establishing branch offices or subsidiaries. However, a subsidiary usually ought to be registered under a particular limited liability type of company.
Concerning setting up a private limited liability company in Malta, it must have less than 50 shareholders. The law of the country also allows creating a form of private exempt company that has only one shareholder. To be able to ensure the management of the company, it should have at least one director and one secretary. The benefits of the process of starting a business in Malta are the highest privacy level, which means that the details of the company’s Directors and Shareholders will not be filled with the Registry, and the opportunity to hold the funds in any bank worldwide. The share capital required when forming a company in Malta reaches 1,200 Euro.
To incorporate the business when establishing a public limited liability company, the minimum share capital should be approximately 47,000 Euro, with more than fifty shareholders. Unlike private limited liability company, the public one has different requirements when it comes to the annual financial reporting and company management in general. The company needs at least two directors and it can trade its shares in Malta.
Those who want to start business in Malta should know that all Maltese companies must:
- have a registered office in Malta;
- submit annual audited financial statements to the Malta Business Register (except for companies with one participant);
- know that the access to the Malta business register can be obtained by any person or organization who, upon written request, can demonstrate a legitimate interest following data protection requirements.
When registering a company in Malta, at least two directors (unless only one director is appointed) must identify the ultimate beneficial owner and indicate their beneficial interests in the company, informing the register of companies Malta. Only after receiving this information, the company registrar can register a company in Malta.
Benefits to open company in Malta
Starting a small business in Malta or establishing a big company has many advantages:
- Attractive tax structure
- Investment opportunities
- Simple registration
- Equal rights and complete ownership
The country offers investment incentives to individuals owning or opening any business in Malta. The investors can invest their profits in the established company or become tax-exempt. The process of establishing a company is a simple registration process. However, opening a bank account in any Maltese bank is a part of creating a company in Malta, which requires your presence during the formation procedure. Foreign investors have equal rights when it comes to business, which allows them to have full ownership of the established companies.
Quick and easy offshore company formation in Malta
Although Malta is the smallest member of the European Union, it is a leading European financial center and one of the most cost-effective jurisdictions in Europe to set up a company. The Companies Act 1995 states that all companies are created by registering in the business registry of companies Malta.
However, in the context of constantly changing legislation of different countries, you need to be careful about such important issues as business structuring. Be sure to take into account all the specific circumstances of your business before starting a new company in Malta.