Ranked among the most prosperous countries in the European Union and classified as an advanced economy by the International Monetary Fund and the World Bank, Malta has become more and more attractive for foreign investors.
Since its accession to the European Union, Malta has undergone significant changes to become competitive.
Types of companies in Malta
- limited liability companies,
- limited partnerships,
- general partnerships.
Features of a Maltese Company
- The minimum authorised share capital is €1,164.69 of which 20% must be paid up or the equivalent in any foreign currency.
- A Maltese company may have different types or classes of shares
- The personal details of a Maltese company’s shareholders are public information
- A Maltese company must have at least one director. The director need not be a Maltese national and can be a corporate body.
- A Maltese company must have a secretary. The secretary must be an individual and need not be a Maltese national.
Malta Company Creation
New company registrations in Malta are constituted by Memorandum & Articles of Association (M&A) that are subscribed to by the shareholder/s and a certificate of registration that is issued by the Malta Registrar of Companies. The M&A would state the name of the company; the name, address and official identification of the subscribers; whether the company is a private company or a public company; the registered office address of the company in Malta; the activities of the company; details regarding the authorised, issued and paid-up share capital; the number of directors and their particulars, the number of company secretaries and their particulars, and the manner in which the legal and judicial representation of the company is to be vested.
Every Private Limited Company must have, at least, one shareholder who may either be an individual or a corporate entity.
Every company must have a registered office address situated in Malta.
Taxation & Double Tax Treaties
Malta is currently signatory to almost 70 Double Tax Treaties. Corporate tax in Malta is calculated at a flat-rate of 35% on the gross profits based on the audited financial statements of the company. However, through the availability of a tax refund system granted to shareholders of Malta-registered companies, the overall net effective tax rate could be reduced to 0% in the case of holding company structures, and 5% in the case of trading companies. In either case, there are specific legal requirements that must be satisfied for shareholders to benefit from such tax refunds.