Malta company formation

Maltese regulatory framework provides for different types of entities including public companies, partnership en commandite (“the limited partnership”) or partnership en nom collectif (“the general partnership”), association en participation, Societas Europaea (the “European Company”), the European Economic Interest Group (“EEIG”) and the most popular, the private limited liability company.

Incorporation process in Malta

When launching a business in Malta certain steps must be adhered to throughout the company formation process. For foreign entrepreneurs, particularly those unfamiliar with local laws, seeking legal assistance and representation is highly recommended. The company formation services offered by Yan Incorporation will be extremely beneficial.

Malta Company Benefits

Generous Tax refund scheme resulting in 5% Corporation Tax on profits from trading activities of a Malta Company (Full exemption on participating holdings)
No withholding taxes, stamp duties or exchange control restrictions apply to the distribution of profits from the Maltese Company to non-resident shareholders, and these dividends can be expatriated without any restrictions.
Anonymity for directors and shareholders (nominee services offered)
Highest level of privacy protection
The Malta Company will be incorporated using your chosen business name (subject to approval by the Registry of Companies)
Malta registered companies are considered resident in Malta where management or business is carried out in Malta
Business can be conducted internationally, and with minimal changes through the Malta Company
Non-residents are freely entitled to hold shares or office in a Malta Company
Annual and general meetings of the Maltese Company may be held outside Malta
Malta Companies may hold funds in banks outside Malta
Companies can be redomiciled to Malta (transferred from another jurisdiction)

Steps for Setting up a limited company in Malta

Step 1:

Choose legal formation

So, what makes a difference when it comes to Malta company registration? The main difference is your level of protection if anything goes wrong, such as lawsuits or defective products. If you're self-employed, you take on that personal risk. But, if you have a Limited Liability Company, you are legally separated from the business.

Step 2:

Reserve a company name

Upon deciding on a company name a reservation that is valid for three months shall be obtained. In general, every name requires the approval of the Registrar, who has the power to refuse registration in certain cases, e.g. if the name is offensive. The name of a private company must end with the words ‘private limited company’, ‘limited’ or the abbreviation ‘ltd’ while that of a public company must end with the words ‘public limited company’ or the abbreviation ‘plc’.

Step 3:

Deposit Share Capital

The minimum authorized capital for a private company in Malta is € 1,164.69 and that of a public company- € 46,587.47. In case of a public company, at least 25% of the issued share capital, and in case of a private company, at least 20% of the issued share capital must be paid-up on the signing of the Memorandum of Association of a company.

Setting up a bank account in Malta can be a complicated process to navigate due to the compliance and anti-money laundering checks.

As an alternative to depositing the initial share capital in an account in the name of the company, you can use the business account consultancy services of Yan Incorporation

Step 4:

Submit registration document

You will be required to present all documentation and the share deposit receipt to the MFSA (Malta Financial Services Authority). The process of registering a company in Malta typically takes 2-5 working days, depending on the size and activities of your business.

Step 5:

Obtain a Tax ID number

You need to get a tax identification number so that you can submit your annual tax return forms. This ID number will differ depending on if you're self-employed or a Limited Liability Company. Again, as taxation is a complicated matter, it may be worth seeking the advice of a qualified tax professional.

Step 6:

In the eyes of the Commissioner for Revenue, if you're performing an economic activity, then you're considered as taxable. A company registered in Malta which is trading in Malta is required to register for VAT within 30 days of its first supply of goods and services made in Malta.
There are three types of VAT registration which cater to:

General VAT registration
Small undertakings
EU Intra Community activity.

Branch Office Registration in Malta

Within the spectrum of legal entities available to operate or invest in Malta, a branch office is a valid option to access the market with full guarantees. Mixed up often for subsidiary companies, branches are not a separated legal entity to its parent company but an extension to it.

Differences between a branch office and a subsidiary company can be seen below:

No require founding capital
No legal capacity in its own
No local management, decisions are taken by parent company.
The parent company is liable for all actions or omissions of its branch

Branches have similar incorporation requirements to regular private companies

Yan Incorporation's 4 easy steps of registration

1/ Filling contact form

You let us know your desirable services by filling the contact form. Then our specialists will contact you by email or WhatsApp

2/ Get a free consultation

When our experts contact with you by emails or WhatsApp, we will schedule a call meeting for the consultation.

During the meeting, we will explain and answer your questions relating to incorporation process and it will be free of charge.

3/ Submit documents

After you are clear all of incorporation procedures and ready to start, our specialists will instruct you to prepare your documents and submit to us by email for checking firstly before sending by post to our office.

4/ Payment & starting

After your documents are ready, we will issue invoice and service agreement relating to your offers. After your payment, the incorporation process will be started immediately

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