If you would like to do business in the European Union, registering a foreign company in Malta is an option that you certainly should consider. The registration can be performed remotely.
The process of forming a foreign company in Malta is transparent and quite simple. The country offers beneficial taxation to foreign entrepreneurs. Malta has signed a number of treaties on avoidance of double taxation. Qualified English-speaking personnel can be hired to work for your company.
- Why register a foreign company in Malta: the advantages of the country
- Business advantages available to a foreign company in Malta
- Forms of ownership available to a foreign company in Malta
- How can you register a foreign company in Malta?
- Documents required for registering a foreign company in Malta
- How to register a partnership in Malta
- Tax incentives in Malta
International Wealth experts and our partners in Malta will be pleased to provide consultations to you on registering a foreign company in the country. While you are staying at home, professional lawyers in Malta will be setting up a foreign company for you. We have packaged services that allow opening a company and a corporate bank account in the country of your choice. If you apply for our Preapproval service, you will be able to save time and money on establishing a foreign bank account.
Please contact us by email that you can see at the top of the page and place a request for a consultation or order our services.
Why register a foreign company in Malta: the advantages of the country
- Even though you can register a foreign company in Malta without leaving home, visiting the place is highly recommended. Malta is a small island country lying between Sicilia in Europe and Tunis in Africa.
- Malta used to be a British colony and the colonial times have left favorable traces in the country. All local people speak English even though Maltese is the official language there. The local legislation is based on British law and it is thus easily understandable for international legal specialists.
- The forms of company ownership available in Malta are very much the same as anywhere in the world. Non-resident companies can use numerous instruments to find partners in foreign countries, expand the business, and ultimately prosper. Cryptocurrency regulations are favorable in Malta and Fintech businesses flourish there. This is a perfect place for launching a startup business, attracting investments, making ICOs, and so on.
- The Maltese tax system gives serious incentives to foreign companies doing business outside of Malta. While the corporate tax for those who earn profits on the territory of the country is 35%, the profits obtained from foreign business operations are taxed at the rate of 5% only.
- Malta is an EU member state with all the advantages that this status entails. At the same time, the taxes in the country are lower in comparison to those levied by other alliance members.
- The climate is wonderful in Malta. It is a good place to escape too if winters are cold and windy in your home country.
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oinformation from an expert on taxes and possible tax benefits of the jurisdiction appropriate to the company's structure.
Business advantages available to a foreign company in Malta
Opening a foreign company in Malta will make good economic sense for the following reasons:
- Remote company registration in Malta is performed very fast. If your foreign company has a simple form of ownership, it can be registered with the state authorities within two days only, which is much faster than registering a foreign company in Liechtenstein, for instance.
- The registered capital and the property of your foreign company in Malta will not be taxed. Dividends are also untaxable on the condition that they are obtained from business operations abroad.
- Experienced lawyers in Malta will help you plan your taxes in the country when you set up a foreign company there. Your ultimate goal should be lowering the profit tax rate to 5% if yours is a limited liability company and to 0% if you have a holding company.
- Transfer of ownership shares is not taxed either.
- It is quite possible to re-domicile a foreign company to Malta from another country. The process is fast and rather inexpensive.
- Malta is especially attractive for setting up a holding company there, launching a Fintech project, opening an online casino, owning marine vessels, and importing goods to the European Union.
- Many entrepreneurs registering foreign companies in Malta choose to open accounts with Maltese banks because they provide for convenient Internet banking opportunities and protect their clients’ information confidentiality.
- There is no currency control in Malta nor transfer pricing regulations.
- When Malta signed the Apostille Convention, legalizing foreign documents became much easier.
- Only 20% of the foreign company registered capital needs to be deposited to start doing business via your Maltese-based company.
Forms of ownership available to a foreign company in Malta
The following forms of company ownership in Malta are most popular with foreign business people:
- A Limited Liability Company (LLC, Limited, Ltd) is the form of company ownership that most business people choose when setting up foreign companies in Malta. общество с ограниченной ответственностью частного типа. The company owner’s liabilities are limited by his or her contribution to the registered capital. Setting up an LLC in Malta is inexpensive. The number of company founders can be between 1 and 50 people.
- A Public Limited Company (PLC) will also have limited liabilities. The difference with the LLC is that a PLC can publicly trade shares thus raising funds. The requirements to the registered capital of a PLC are much tougher though.
How can you register a foreign company in Malta?
Modern technologies allow registering a foreign company in Malta remotely. You can stay home and communicate with InternationalWealth experts via messengers and videoconferencing applications. We will gladly consult you on all relevant issues, support you at all stages of the procedure, help you complete the application documents in the proper way, and so on.
The process of setting up a foreign company in Malta will have the following stages:
- Consultations with a licensed registration agent
InternationalWealth partners in Malta will introduce you to the details of the foreign company registration process. Then you will have to sign a service agreement.
- Selection of the form of company ownership
The most popular form of company ownership in Malta is LLC so we will use it as an example in describing the next stages in the process.
- Selection of the company name
The company name shall be written in Latin letters. It shall end in Limited or Ltd. The uniqueness of the company name has to be certified by the state register.
- Acquisition of a registered legal address in Malta
Experts in Malta will help you rent an office for your foreign company in the country. This is mandatory but not too expensive.
- Bank account opening for your foreign company in Malta
The corporate legislation in Malta requires that you should open a bank account for your company before registering it with the authorities. The bank account is needed for depositing the company’s registered capital there. The bank officer will request to see your company By-laws. The registered capital will be ‘frozen’ until you bring an extract from the registry to the bank certifying that your company has been officially established.
- Registered capital requirements
An LLC in Malta has to have registered capital in the amount of 1,165 EUR. Before incorporating in Malta, you have to deposit only 20% of this amount into the bank account. A Public Limited company, in its turn, has to have registered capital in the amount of 46,588 EUR, which is substantially higher. This is one of the reasons why foreign entrepreneurs choose to set up LLCs in Malta rather than PLCs.
- Number of company founders
Normally, at least two people are required to set up a foreign company in Malta. At the same time, the company can have a single owner anyway. This goal can be achieved in two ways. First, you can hire a nominee shareholder. Second, you can use the assistance of Maltese lawyers in establishing a ‘one-owner firm’ in the country, which would be in keeping with the local law ‘On Companies’.
- Company officers
The foreign company in Malta can have one director and the company owner can play this role. Hiring a company Secretary of any nationality is obligatory. InternationalWealth will be happy to assist you with that.
- Company By-laws
Our experts will also help you draw up the Memorandum and Articles of Association and the By-laws of your foreign company in Malta. As you are not going to be present in the country when the company is registered there, you will have to issue a Power of Attorney to our Maltese partners so that they can sign these documents on your behalf.
Your foreign company in Malta will become fully functional when you are issued the Certificate of Incorporation. If your types of business activities require licensing, you will also have to obtain the license before you can start business operations.
- Company registration timeframes
The central part of the registration process – the application processing – takes only two days. The whole procedure including the acquisition of the corporate documents requires about a week.
Documents required for registering a foreign company in Malta
The list of documents that you will have to supply when registering a foreign company in Malta is standard and it does not differ from similar lists required in other jurisdictions. We will tell you what documents are needed in the frameworks of a personal consultation.
How to register a partnership in Malta
Alternatively to registering an LLC in Malta, you can establish a partnership in the jurisdiction. The following types of partnerships are available:
- Non-registered partnership – the act of the company establishment is signed by a notary public. Two self-employed freelancers, for example, can set up such a company. The document signed by the notary will define the profit distribution mechanisms.
- General Partnership (EnNom Collectif) in which all partners have unlimited liabilities. This type of partnership has to be registered with the Company Registrar.
- Limited partnership where one General Partner has an unlimited liability and one or more Limited Partners have limited liabilities.
Besides, you can register as a sole proprietor in Malta by paying a visit to a notary public.
Tax incentives in Malta
Resident companies engaged in business activities within the geographical borders of Malta pay a 35% profit tax, which obviously cannot be referred to as a small tax. At the same time, non-resident companies doing business outside Malta are liable to much lower taxes. There are legal solutions that can bring corporate tax that your foreign company in Malta has to pay down to 5%.
What is more, company maintenance costs are extremely low in the country. If you would like to leave your foreign company in Malta idle for some time, you may have to spend as little as 100 EUR per year on company maintenance.
If you are interested to learn more about the possibility to register a foreign company in Malta, please write to firstname.lastname@example.org or contact us by phone or our live chat. We have a number of interesting solutions to offer!
Can I reserve the name for my prospective foreign company in Malta?
Yes, you can do the search and see if the name you would like to use is available (you cannot use an existing company name). If it is, you can reserve it with the Registrar for as long as three months.
What is the minimum required registered capital that a foreign company in Malta has to deposit?
The minimum required registered capital that an LLC has to have is 1,165 EUR of which 20% has to be deposited prior to company registration. The minimum required registered capital that a PLC has to have is 46,588 EUR of which 25% has to be deposited prior to company registration. The money has to be deposited to the company bank account and a bank statement certifying the deposit has to be shown to the company registrar.
What happens after the application has been submitted to the Maltese Company Registry?
If the Memorandum and the By-laws of your foreign company in Malta are in conformity with the local law ‘On Companies’, the Registrar will issue the company Registration Certificate to you after you pay the state duty. This is an official document that confirms the birth of a new corporate entity. From this moment, your Maltese-based company can sign contracts, own property, open new bank accounts, and so on.